In order to enhance the role of real estate funds in the Kingdom, the Board of the Capital Market Authority (CMA) issued its decision approving the amendments to the instructions for real estate investment funds, after the CMA published the amended instructions on its website for 15 days The amended regulations will be effective from the date of their publication, as this comes as a continuation of the CMA's role in regulating and developing the financial market and in line with its strategy and the Financial Sector Development Program, one of the main programs of the Kingdom's Vision 2030.

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The project was worked on in light of the best international practices followed in this aspect, in addition to taking advantage of the observations contained in the public feedback and discussion with market participants and coordination with the concerned authorities, in order to achieve the desired objectives of these instructions and the market in general, as the CMA attaches great importance to the asset management industry as one of the main securities businesses regulated by the CMA; the asset management industry contributes to providing diversified investment products, professional management of customer assets, and raising professional practices and institutional behavior in the market. The most prominent of the proposed amendments are the prohibition of those whose terms and conditions of the fund at the time of establishment show that they own (5%) or more units of the fund to dispose of the units that have been subscribed during the first year of trading the units of the concerned fund, in addition to additional disclosure requirements such as disclosure related to the transactions of large unit owners in the market, adding market rents valuation to the reports of accredited evaluators with the obligation for the fund manager to publish them, and additional provisions to ensure the rights of all participants in these products such as all lease contracts concluded are legally documented. The minimum threshold for establishing a fund has been increased from SAR 100 million to SAR 500 million.