As part of the Capital Market Authority's ("CMA") strategic objectives to develop the capital market, and based on the Capital Market Law issued by Royal Decree No. (M/30) Dated 2/6/1424 H, the CMA Board issued its Resolution to approve the Instructions on the Direct Financing Investment Funds, which shall be effective as of the date of their publication.

These Instructions come within the framework of the continuous cooperation between the CMA and the Saudi Central Bank ("SAMA") which resulted in the signing of a memorandum of understanding (MoU) between His Excellency the Chairman of the CMA's Board, Mr. Muhammad bin Abdullah Al-Quweiz, and His Excellency the Governor of SAMA, Dr. Fahd bin Abdullah Al-Mubarak regarding investment funds carrying out the activity of direct financing for institutions.

These Instructions aim to regulate the offering of the units of investment funds that are established for direct financing, and the management of these funds and their operations, including the conditions for granting direct financing to the beneficiary, investment limitations, and additional duties on the fund manager in that regard.

 This comes after the CMA published the draft Instructions on the Direct Financing Investment Funds for public consultation on its website and the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center.

The Instructions on the Direct Financing Investment Funds can be viewed via the following link:

The Instructions on the Direct Financing Investment Funds