The changes will reduce the requirements for obtaining a management activity licence, reports newswire Reuters, citing a presentation given by senior CMA officials on Sunday.
The aim is to boost the number of asset managers in the kingdom and increase private equity and venture capital investments.
Moving minimums
The minimum net assets for a firm to be considered an investment company has been dropped to SAR10m (£2m, $2.7m, €2.25m), a fifth of what it was previously, according to a statement handed out during the presentation.
To obtain a licence for the management of investment funds and client portfolios, the minimum net assets was reduced to SAR20m, again down from SAR50m.
In addition, CMA will now permit two new activities; namely managing non-real estate investment funds and managing the portfolios of small but experiences investors.
More change to come
Saudi Arabia plans to expand its stock market this year to attract more foreign investors, Mohammed bin Abdullah bin Ibrahim Al-Kuwaiz, chairman of the CMA, told Reuters.
“We expect the release of new amended draft rules each and every year, in order to achieve the Vision 2030; an ambitious plan that aims to diversify the economy without having to rely on oil revenues, in order to open and develop the capital markets.”
