The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:
Capital Market Authority approves the regulations for the enlisted companies, investment funds and special purpose establishments’ ownership of properties in the KSA
Capital market authority approves the regulations for the enlisted companies, investment funds and special purpose establishments’ ownership of properties in the KSA, including Mecca and Madinah. Those regulations shall be enforceable from the date of enforcement for non-Saudis property ownership law issued by the royal bylaw number (M/14) dated to 19-01-1447H.
The regulations for enlisted companies, investment funds and special purpose establishments’ ownership of properties in the KSA shall replace the special conditions with the exception of the companies which are enlisted in the Saudi Capital Market of (non-Saudis) according to non-Saudis ownership and investment of properties issued by the authority board decree in January, 2025.
The approved project aims at regulating ownership of properties by the companies which are enlisted in the Saudi capital market according to the companies law, and the investment funds in addition to the licensed special purpose companies, and acquiring other material rights of the property in the KSA- including both Mecca and Madinah- that will contribute in reinforcing capital market competence, attracting investors and reinforcing its competition both nationally and internationally.
The authority points out that those regulations don’t affect the foreign investor, the enlisted companies, the investment funds and the special purpose establishments, in addition to the capital market establishments compliance with the related laws, regulations and instructions, especially the law for non-Saudis ownership of properties and its executive regulations, whether at practicing their activities or at their dissolution, for keeping organizational coherence and reinforcing clarity of regulative frameworks for properties ownership in the KSA.
Those regulations come with the issuance of the law for non-Saudis ownership of properties which is enforceable from January, 2026, as it grants the authority the right of issuing the regulations for enlisted companies, investment funds and special purpose companies ownership of properties in the KSA according to the fourth article, as an extension of the related regulations for non-Saudis ownership of properties, without creating new regulations.
It is expected that those regulations shall motivate investment, reinforce international investors’ contributions, improving foreign capital flow to the Saudi capital market, also support national economy, and real estate sector development, according to the Saudi Vision 2030 for developing financial sector.
Capital Market Authority extends the discharge from charges on issuance of debt instruments and bearing the registration and enlistment charges for defined editions until 2027
Annexed to the capital market authority decree which is announced in July, 2020, for discharging enlisted companies from paying the charges to the authority for one year, and the debt instrument exporters to the end of 2025, the capital market authority approves extending the discharge from the charges paid to the authority, while bearing the charges of both Saudi capital market company (Tasawol) and instruments deposit center (Edaa) for the applications of debt instruments issuance, in a condition that the exporters or editions attain a present and expressed credit categorization by a licensed categorization agency according to defined regulations, until the end of 2027.
The decree aims at supporting and developing instruments and debt instruments market, encouraging exporters to join it, that contributes in reinforcing its attractiveness and extending the base of national and international exporters and investors, in addition to increasing the companies competence to have a long term finance in a competitive cost, and encouraging companies to have a credit categorization, that raises the quality of editions and improves exposure levels, in addition to reinforcing investors’ confidence.
Capital market authority defined the issuances which are included in this decree, to the debt instruments for non-governmental bodies which are enlisted for the exporter or the issuance who have a credit categorization from a licensed credit categorization agency, while that categorization should be present and expressed, as the authority shall bear the charges for only two editions per each exporter.
For the special issuance applications which are included in the decree, the authority defines them to the debt instrument issuances to non-governmental bodies which are issued for the exporter or the edition that have a credit categorization from a licensed credit agency, and which size doesn’t exceed 500 million Saudi riyals, while that categorization should be present and expressed, for only two editions per exporter.
The authority shall bear the charges for both Saudi Capital market company (Tadawol), and capital deposit center (Edaa) for total public and private issuances, to the maximum of five million riyals till 2027, while issuance applications that exceed that limit shall be considered.
Recent development in the instruments market and debt instruments, in addition to the discharge in the previous years, results in a noticeable development in instruments and debt instruments market in the KSA, as the number of those editions increased from 32 in 2021 to 118 at the end of the fourth quarter of 2025, that extends the size of instruments market and the debt instruments market issued by the companies from about 90 milliards to about 132 milliard riyals at the same period, in addition to the increase of the enlisted issues circulations ratio from 0.46% to more than .90%.
The exporters who have the credit categorization are about 60%, that reflects the awareness of exported companies about the importance of categorization and its role in reinforcing editions attractiveness and increasing the transparency and risk assessment level, in addition to the increased preference of investors to the categorized instruments compared to non-categorized ones, as the most transparent ones according to the level of risks and credit quality.
It is worth noting that the discharged charges in a case of public issuance of the source or the edition that has a present and an expressed categorization by a licensed categorization agency is about 400 thousand Saudi riyals, while in a case of the special issuance of the source or the edition with a present and an expressed categorization by a licensed categorization agency is about 60 thousand riyals for the editions which don’t exceed 500 million riyals.
This decree completes the previous efforts which are made by the authority to encourage new exporters to the market and relieving financial burdens related to the issuance processes that contributes in reinforcing market attractiveness and motivating issuances and the increase of instruments and debt instruments marker, in addition to empowering it to perform its role as a basic channel for financing economic and developmental activities in the KSA, according to the targets of developing the financial sector in the Saudi Vision 2030.
Legal Information about Commercial instruments
Value is not enough to consider the instrument as a commercial instrument, as the regulative standard is related to its purpose.The commercial instrument represents what is allocated for investment and circulation in the markets such as shares and assets.For the instruments which function is limited to payment, insurance or security, they are not enlisted in the concept of financial instruments.The regulative instrument according to the third article of the capital market system (commercial instruments such as checks and money receipts or order instruments, in addition to instrumental bonds, and cash transfers, the instruments which are circulated by the banks and insurance policies aren’t considered financial instruments)
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