Saudi Arabia Revises Rules to Boost Asset Management Market

The Capital Market Authority (CMA) has loosened financial regulations to enhance asset management activity and increase private equity and venture capital investments. The CMA lowered minimum net asset requirements to $3 million (SR10 million) for entities to be considered investment companies, down from $13 million (SR50 million). Firms were given the go-ahead to partake in new types of investment activities such as managing non-real estate investment funds and the portfolios of small but experienced investors. The changes are designed to meet the goals of Vision 2030 by opening financial market access to local and foreign institutional investors.