CMA Approves Major Financial Market Regulation Updates

Saudi Living reports that Saudi Arabia's Capital Market Authority (CMA) has rolled out a series of regulatory enhancements aimed at modernising the financial market, spanning investment funds, robo-advisory services, netting arrangements, and foreign investor access.

Under a board resolution dated 7 July 2025, the CMA approved amendments to the Investment Funds Regulations, the Real Estate Investment Funds Regulations, and the Glossary of Defined Terms used in its regulations. The changes are intended to develop the regulatory environment for funds, make it easier to establish and manage various types of funds, and support both product diversification and stronger investor protection.

A later resolution dated 5 March 2026 updated the Capital Market Institutions Regulations to regulate robo-advisory services that rely on algorithms and technology to manage client investments. Providers must be licensed capital market institutions, manage portfolios and use algorithms only within CMA-approved controls and governance structures.

The authority also approved the Close-out Netting and related Collateral Arrangements Regulation on 3 July 2025, in force from July 2025. It applies when at least one party is a capital market institution and sets rules for handling default under netting and collateral agreements, aligning the Kingdom with international derivatives standards.

Market opened to foreign investors

On 6 January 2026, the CMA announced amendments to the Rules for Foreign Investment in Securities. The Qualified Foreign Investor (QFI) regime and the swap-based access framework were discontinued. From 1 February 2026, the Main Market is open to all categories of foreign investors for direct investment in listed securities.

Foreign individuals residing in a GCC country, or previously resident in Saudi Arabia or any GCC country, may now open investment accounts and invest directly. A maximum ownership limit of 10% applies The reforms mark a significant step in opening the market and diversifying investment options in line with wider economic goals.

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