Regulatory Alerts2018-02-06
Indirect Contribution of Investment Funds to the Financing Sector
The Saudi Arabian Monetary Authority (SAMA) issued this circular to clarify permissible activities between financing companies and Capital Market Authority (CMA)-licensed investment funds. It authorizes financing companies to sell financing portfolios to investment funds, enter into Loan Participation Agreements for joint financing, and allow investment funds to invest with financing companies while retaining the financing companies' credit approval authority. These measures aim to diversify liquidity sources for financing companies and support national economic development under Saudi Vision 2030.
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