Saudi Arabia requires five-day advance notice of investment rounds by finance firms

Saudi Arabia's Central Bank (SAMA) has instructed financing companies and other licensed non-bank financial institutions to notify the central bank at least five working days before launching any investment round, as part of efforts to strengthen regulatory oversight of fundraising activities.

The requirement applies to financing companies, payment service providers, exchange houses and other entities supporting financing activities that are licensed by SAMA.

Under the new rules, institutions planning an investment round must disclose details including the timetable, purpose, value and target investors, as well as the expected impact on ownership structures and the company's financial position.

SAMA said firms must also provide information on the type of investment instrument being offered, whether equity, convertible securities, debt instruments or other financing mechanisms, along with supporting documents and any additional information requested by the regulator.

The central bank stressed that non-bank financial institutions remain obligated to comply with all applicable regulations, including obtaining prior approval from SAMA where required.

Investment rounds are fundraising stages in which companies raise capital from investors in exchange for equity stakes, convertible instruments, debt securities or other forms of financing. The move comes as Saudi Arabia continues to expand and regulate its financial sector under broader economic diversification reforms.