The Securities Depository Center (Edaa) Announces Implementing a Corporate Action on Abdullah Al-Othaim Markets Co. Securities

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• The Capital Market Authority Approves a Set of Regulatory Enhancements for Investment Funds in the Kingdom

  The Capital Market Authority (“CMA's") Board has approved a set of enhancements aimed at developing the regulatory environment for investment funds in the Kingdom. This includes amendments to the Investment Funds Regulations, the Real Estate Investment Funds Regulations, and the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority. The amendments approved by the CMA Board aim to develop the regulatory framework for investment funds to enhance the asset management industry and strengthen its competitiveness by identifying areas for improvement and adopting global best practices. The amendments also include the development of additional regulatory provisions that support the growth of the investment fund and real estate investment fund sectors, enhance transparency and disclosure for fund unit holders, and establish governance standards that ensure greater protection of investors' rights. The key amendments focused on enhancing the efficiency of investment fund management by expanding the categories authorized to distribute fund units to include investment fund distribution platforms and electronic money institutions licensed by the Saudi Central Bank, through their websites or mobile applications. The amendments also developed provisions related to the termination of investment funds and the dismissal of fund managers, in addition to regulating the voluntary withdrawal of managers of public and private investment funds. Among these provisions is the requirement to obtain the CMA's approval and the obligation of the current fund manager to transfer fund management responsibilities to the successor within 60 days of receiving approval. These measures aim to protect the rights of investors in both public and private funds, ensure a smooth transition of fund management responsibilities, safeguard the interests of unit holders, and enhance investor confidence in the capital market. As part of efforts to expand investment opportunities for Real Estate Investment Traded Funds (REITs) listed on the Parallel Market (Nomu) and to support the diversification of their assets and increase their flexibility to enhance potential returns for investors, the approved amendments allow such funds, at the time of their establishment, to invest in real estate development projects without being bound by the investment ratios and asset restrictions specified in the Real Estate Investment Funds Regulations. Among the amendments approved by the CMA Board to allow public funds to subscribe to debt instruments offered privately if issued by issuers within the Kingdom. This aims to support the growth of the asset management industry, as it will enable public fund managers to subscribe to offerings from a broader range of debt instrument issuers, following the removal of previously imposed restrictions under the Investment Funds Regulations. The amendments also require money market fund managers and capital protection funds not to invest more than 10% of the fund's net asset value in debt instruments issued by a single issuer, and that the total investments of the fund in a single entity do not exceed 25% of the fund's net asset value. These measures aim to limit risk and enhance portfolio diversification. The amendments also require managers of public funds that invest in debt instruments to disclose the credit ratings of the fund's top ten debt holdings in the fund's quarterly report, in order to enhance disclosure and transparency for investors in those funds. Regarding the requirements for offering private and foreign investment funds to retail investors, the amendments include a provision aimed at enhancing investor protection. This provision stipulates that cash subscriptions from retail investors in a private fund must not exceed 50% of the total cash subscriptions in the fund at the time of offering its units. In the case of closed-ended private funds, the transfer of fund units must not, under any circumstances, result in retail investors holding more than 50% of the total value of the fund's units through cash contributions. An additional provision was introduced stating that cash subscriptions from retail investors in the Kingdom must not exceed 50% of the total cash subscriptions in the fund when offering securities issued by a foreign fund. In the case of closed-ended foreign funds, the transfer of ownership of the securities issued by the fund must not, under any circumstances, result in retail investors in the Kingdom holding more than 50% of the total value of the fund's securities through cash contributions. The amendments also included allowing capital market institutions licensed to conduct management investment activities to distribute foreign funds and offer their securities in the Kingdom, subject to specific requirements. This will enable clients in the Kingdom to invest in foreign funds. The adoption of these amendments coincides with the Capital Market Authority's approval in the past year (2024) of the launch of 44 new investment funds across various categories, including 15 equity funds, 5 money market funds, 7 endowment (Waqf) funds, and 4 exchange-traded funds (ETFs), in addition to real estate funds and other specialized funds. Investment funds accounted for the largest share of assets under management, reaching approximately SAR 700 billion by the end of 2024, reflecting a growth rate of 25.2% compared to 2023. The CMA Board's decision to adopt these amendments came following a thorough review of the regulatory provisions subject to amendment, carried out through three separate initiatives. Each initiative addressed a specific set of amendments and was published consecutively for public consultation, beginning in June 2024, followed by October 2024, and then a third round in February 2025, before the full adoption of the amendments across all three initiatives. The amended Investment Funds Regulations, the Real Estate Investment Funds Regulations, and the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority can be accessed through the following links: The Investment Funds Regulations The Real Estate Investment Funds Regulations The Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority

  09/07/2025 19:54:26

• The Capital Market Authority Licenses Sukuk Capital Company to Conduct Arranging Activity in the Securities Business and its Completion of the Commencements of Business Requirements

  In accordance to the Capital Market Law issued by Royal Decree No. (M/30) dated 02/06/1424H and its Implementing Regulations, the Capital Market Authority announces that Sukuk Capital Company has completed the commencements of business requirements to conduct Arranging Activity in the Securities Business licensed as per CMA resolution dated 17/09/1446H corresponding to 17/03/2025G.

  08/07/2025 19:19:08

• The Capital Market Authority Licenses Cadaa Investment Company to Conduct Advising Activity in the Securities Business and its Completion of the Commencements of Business Requirements

  In accordance to the Capital Market Law issued by Royal Decree No. (M/30) 02/06/1424H dated and its Implementing Regulations, the Capital Market Authority announces that Cadaa Investment Company has completed the commencements of business requirements to conduct Advising activity in the Securities Business licensed as per CMA resolution dated 6/8/1446H corresponding to 2025/02/05.

  08/07/2025 19:15:00

• The Capital Market Authority Approves the Regulatory Framework for the Issuance of Depositary Receipts in the Saudi Capital Market Corresponding to Foreign Shares

  The Capital Market Authority's (CMA's) Board approved the regulatory framework for the offering of Saudi depositary receipts in the capital market representing shares issued in a foreign country and listed on its capital market, to be effective as of the date of its publication. The approval of this regulatory framework aims to introduce a new security through the regulation of issuing depositary receipts in the capital market for shares listed in a foreign market, contributing to the deepening of the Saudi capital market and enhancing its role in capital formation, while also increasing its attractiveness by providing additional listing options and diversifying investment products. According to the approved regulatory framework, the CMA will allow foreign companies to register and offer depositary receipts in the Saudi capital market representing their shares listed in foreign markets, upon obtaining the required approval. In line with the adopted framework, the requirements for registering and offering depositary receipts will follow the requirements for registering and offering shares currently in place under the Rules on the Offer of Securities and Continuing Obligations. The issuer of the Saudi depositary receipts will also be subject to the same continuing obligations applicable to a foreign company that lists its shares on the Main Market under the Listing Rules, subject to certain exceptions. In 2020, the Capital Market Authority allowed companies listed on the local capital market to issue certificates of deposit outside Saudi Arabia in exchange for their shares traded in the Saudi capital market. This move aims to strengthen the pillars of Saudi Vision 2030, which seeks to make the Saudi capital market attractive to both local and foreign investors. Consequently, it is now allowed to offer depositary receipts to foreign companies in exchange for their issued shares in a foreign market. The approval of the Amendments came following the CMA's publication of the draft of “The Draft Amendments to Regulate the Offer of Depository Receipts in the Saudi Capital Market" on the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform) affiliated to the National Competitiveness Center and the CMA's website for public consultation for a period of (30) calendar days. The amended Rules on the Offer of Securities and Continuing Obligations and the amended Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority can be accessed through the following links: Rules on the Offer of Securities and Continuing Obligations Glossary of Defined Terms Used in The Regulations and Rules of the Capital Market Authority It is also worth noting that, following the adoption of the regulatory framework, the Saudi Exchange (Tadawul) and the Securities Depository Center Company (Edaa) have announced the publication of the amended the Exchange Rules and Procedures, which can be accessed through the following link: The amended Exchange Rules and Procedures

  07/07/2025 18:13:48

• The Capital Market Authority Licenses Osool & Bakheet Investment Company to Conduct Arranging Activity in the Securities Business and its Completion of the Commencements of Business Requirements

  In accordance to the Capital Market Law issued by Royal Decree No. (M/30) 02/06/1424 H dated and its Implementing Regulations, the Capital Market Authority announces that Osool & Bakheet Investment Company has completed the business commencements requirements to conduct Arranging activity in the Securities Business licensed as per CMA approval dated 18/04/1445 H corresponding to 02/11/2023 G.

  07/07/2025 17:58:21