Fsdp Quarterly Newsletter Q1 2025 · Page 6

 
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The Launch of ‘Edaa Connect’ to Simplify Access to 
Saudi Mutual Funds 
The Securities Depository Center Company (Edaa) 
launched the "Edaa Connect", an innovative platform 
aimed at facilitating access to mutual funds in the Saudi 
capital market. "Edaa Connect" serves as a one-stop shop 
for mutual fund investments, providing centralized 
access to a broad range of mutual funds within the Saudi 
capital market. The platform streamlines subscription 
and redemption processes, making it easier for investors 
to manage their portfolios through a single digital 
platform. The platform also offers significant benefits for 
fund managers and provides enhanced tools to manage 
their operations. The platform will also allow funds 
greater visibility and access to a broader investor base, 
promoting fair competition within the mutual fund 
market. 
Allowing Foreign Investment in Real Estate Listed 
Companies in Makkah and Madinah 
The Saudi Capital Market Authority (CMA) has announced 
that foreigners are allowed to invest in Saudi listed 
companies in the Saudi capital market that own real 
estate within the boundaries of the cities of Makkah and 
Madinah. This follows the approval of the Controls for the 
Exclusion of Companies Listed in the Saudi Stock 
Exchange (Tadawul) from the Meaning of the Phrase (Non-
Saudi) in accordance with the Law of Real Estate 
Ownership and Investment by Non-Saudis.  
According to the approved controls, foreign investment 
in companies owning real estate within the boundaries of 
Makkah and Madinah will be limited to shares of these 
Saudi companies listed on the Saudi capital market, 
convertible debt instruments, or both. However, the 
ownership of natural and legal persons jointly who do not 
hold Saudi nationality shall not exceed 49% of the 
company's shares. An exception applies to strategic 
foreign investors, who are not permitted to own shares or 
convertible debt instruments in these companies. 
Through this announcement, the Capital Market Authority 
aims to stimulate investment, enhance the attractiveness 
and efficiency of the capital market, and strengthen its 
regional 
and 
international 
competitiveness 
while 
supporting the local economy. This includes attracting 
foreign capital and providing the necessary liquidity for 
current and future projects in Makkah and Madinah 
through the investment products available in the Saudi 
market, positioning it as a key funding source for these 
distinctive developmental projects. 
Launch of the CMS System to Streamline Investor 
Subscriptions and Enhance the Efficiency of the Saudi 
Capital Market 
Saudi 
Exchange 
Company 
launched 
the 
Capital
Management System (CMS), a cutting-edge platform
designed to enhance efficiency, transparency, and
effectiveness in the initial public offering (IPO) process 
within the Saudi capital market. The new system provides 
investors with a seamless subscription experience, 
allowing them to subscribe directly through their 
investment portfolios without the need to open new 
accounts. This simplifies the process, saving time and 
effort while expanding access to a broader range of 
investment opportunities, thereby enhancing their 
investment flexibility and decision-making. For issuers,
CMS significantly reduces market access time, enabling 
companies to list securities more efficiently while
reaching a broader investor base and increasing IPO 
success rates. For capital institutions and subscription 
manag