Logo ofCapital Market Authority (CMA)
The Capital Market Authority (CMA) implemented the passporting regime for investment funds among financial market regulators in Gulf Cooperation Council (GCC) countries, effective from 2025. 
This regulation establishes a standardized framework for registering and marketing investment funds across GCC member states. Alongside its implementation, the CMA approved a dedicated regulatory guide outlining the procedures and requirements for cross-registered funds.
The passporting regime is part of a broader GCC initiative to facilitate the cross-border registration of financial products, aiming to enhance regional market integration and streamline regulatory cooperation.
The CMA’s objective is to clarify the processes governing both domestic and GCC-based funds, improve financial market services, address regulatory challenges, and support mechanisms to attract greater international investment into the Saudi market. The initiative also aims to increase international ownership in investment funds and attract more foreign capital.
Under the regulation, cross-registration must be carried out through both the fund’s home regulator and the regulator in the host country. Applications must specify whether the fund is public or private and designate a local agent responsible for marketing the fund units in the host jurisdiction.
Host country regulators are authorized to set its own standards and requirements for approving fund registrations and to supervise and monitor such funds, especially concerning the agent’s activities and relationship with investors. It also empowers the host authority to take necessary measures to protect investors.
The regulation enables funds established in Saudi Arabia to be passported into other GCC countries that have adopted the regime, provided they comply with the host country’s laws and regulations.
Fund managers are also required to meet the host country’s obligations. According to the approved regulatory guide, the appointed agent must provide the same documents to investors in the host market that were made available by the fund manager in the fund’s country of origin. This also applies to other GCC countries where the fund is promoted, ensuring that investors have sufficient information to make well-informed investment decisions.
Key features of the regulatory guide include streamlining the process of offering Saudi funds in GCC markets by continuing to apply Saudi financial market regulations and the cross-registration regulation, with the requirement to complete the designated application form.
The guide also outlines the obligations of the appointed fund agent during both the application phase and after the fund has been approved for cross-registration.
Through this initiative, the CMA aims to enhance market liquidity, strengthen the economies and competitiveness of GCC countries, achieve financial market integration, unify investment-related policies and regulations, and foster a transparent and stable investment environment that promotes local, regional, and international investment growth.
Logo ofCapital Market Authority (CMA)
The Capital Market Authority (CMA) implemented the passporting regime for investment funds among financial market regulators in Gulf Cooperation Council (GCC) countries, effective from 2025.
This regulation establishes a standardized framework for registering and marketing investment funds across GCC member states. Alongside its implementation, the CMA approved a dedicated regulatory guide outlining the procedures and requirements for cross-registered funds.
The passporting regime is part of a broader GCC initiative to facilitate the cross-border registration of financial products, aiming to enhance regional market integration and streamline regulatory cooperation.
The CMA’s objective is to clarify the processes governing both domestic and GCC-based funds, improve financial market services, address regulatory challenges, and support mechanisms to attract greater international investment into the Saudi market. The initiative also aims to increase international ownership in investment funds and attract more foreign capital.
Under the regulation, cross-registration must be carried out through both the fund’s home regulator and the regulator in the host country. Applications must specify whether the fund is public or private and designate a local agent responsible for marketing the fund units in the host jurisdiction.
Host country regulators are authorized to set its own standards and requirements for approving fund registrations and to supervise and monitor such funds, especially concerning the agent’s activities and relationship with investors. It also empowers the host authority to take necessary measures to protect investors.
The regulation enables funds established in Saudi Arabia to be passported into other GCC countries that have adopted the regime, provided they comply with the host country’s laws and regulations.
Fund managers are also required to meet the host country’s obligations. According to the approved regulatory guide, the appointed agent must provide the same documents to investors in the host market that were made available by the fund manager in the fund’s country of origin. This also applies to other GCC countries where the fund is promoted, ensuring that investors have sufficient information to make well-informed investment decisions.
Key features of the regulatory guide include streamlining the process of offering Saudi funds in GCC markets by continuing to apply Saudi financial market regulations and the cross-registration regulation, with the requirement to complete the designated application form.
The guide also outlines the obligations of the appointed fund agent during both the application phase and after the fund has been approved for cross-registration.
Through this initiative, the CMA aims to enhance market liquidity, strengthen the economies and competitiveness of GCC countries, achieve financial market integration, unify investment-related policies and regulations, and foster a transparent and stable investment environment that promotes local, regional, and international investment growth.
