Saudi Arabia: CMA Proposes Expanding Public Fund Investments

Al-Watan, 12 June 2024: The Saudi Capital Market Authority has invited public comments from interested parties, market participants, and stakeholders on the proposed amendments to the Investment Funds Regulations, allowing a 30-calendar day consultation period ending 12 July 2024.

The project aims to allow public funds to subscribe to debt instruments offered through private placements if issued by issuers within the Kingdom, in order to enable the growth of the asset management industry.

Under this project, a public fund manager will be able to subscribe with a larger number of debt instrument issuers, after removing the conditions imposed on them according to the Investment Funds Regulations.

This development is expected to increase the attractiveness of the market for debt instrument issuers, as well as the appeal of funds investing in debt instruments as a result of the expanded range of assets available for them to invest in.

To enhance investor protection, the proposed project has required money market fund managers and capital protected funds to not invest more than 10% of the fund’s net asset value in debt instruments issued by a single issuer, in order to limit risks and increase portfolio diversification.

According to the proposed project, managers of public funds that invest in debt instruments are obligated to disclose the credit rating of the invested debt instruments in the fund’s quarterly statement, in order to enhance disclosure and transparency levels for investors in those funds.

The proposed amendments align with the Capital Market Authority’s strategy to deepen the debt market, increase liquidity, boost the Saudi market’s global competitiveness, and develop the sukuk and debt instruments into a top emerging market.

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Saudi Arabia: Working Under Direct Sunlight Banned

Okaz, 10 June 2024: The Human Resources Ministry and Social Development and the National Council for Occupational Safety and Health will begin prohibiting working under the sun on all private sector establishments, from 12pm to 3pm.

The ban will start from 15 June 2024, until15 September 2024.

This decision aims to protect the well-being and health of private sector employees by ensuring a safe and healthy work environment that complies with international occupational safety and health standards.

The Ministry has urged employers to regulate working hours and comply to this decision, contributing to the provision of a safe work environment free from various risks.

This measure aims to enhance efficiency and preventive measures, thereby reducing occupational injuries and illnesses, and safeguarding workers from accidents.

Additionally, the Ministry has published the “Procedural Guide for Occupational Safety and Health to Prevent the Effects of Exposure to Sunlight and Heat Stress” on its website.

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Saudi Arabia: New Haj Rules Begin

Khaleej Times, 2 June 2024: Penalties for violating Haj regulations and instructions in Saudi Arabia are being implemented starting 2 June 2024 until 20 June 2024.

The authorities will impose a fine of 10,000 Saudi Riyal, roughly around Dh9,000 on citizens, residents, and visitors performing Haj without a permit.

The authorities have also highlighted that anyone caught transporting Haj pilgrims without a permit will be imprisoned to up to 6 months, and will be fined for up to 50,000 Saudi Riyal or Dh49,000.

Performing haj without a permit in the city of Makkah, the central area, the holy sites, the Haramain train station, security checkpoints, screening centres, and temporary security checkpoints is prohibited.

Expats caught violating will be deported to their home countries and banned from re-entering Saudi for a specific period according to the law.

If a resident is caught transporting Haj pilgrims without a permit, they will be deported after serving the sentence and barred from re-entering the Kingdom for specified periods.

Additionally, the authorities have clarified that anyone that has a visit visa, regardless of their type or designation, are not allowed to perform Haj.

All visitors are advised to avoid travelling to or staying in Makkah between the 2 June 2024 and 21 June 2024.

The authorities have reported that over 20,000 visitors with visit visas have been found in violation of Hajj regulations, which prohibit them from staying in Makkah.

Similary, operators in the UAE cannot receive applications or requests for Haj or Umrah without prior approval from the General Authority of Islamic Affairs and Endowments.

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Saudi Arabia: Changes in the Energy Efficiency Sector

Aleqtsiadiya, 27 May 2024: The Saudi Energy Efficiency Centre Etihad ESCO has announced it is working to create a suitable environment for service providers in this sector to obtain available investment opportunities.

The centre has also implemented a licensing mechanism for those interested in investing in this sector after they have the necessary technical requirements to provide the service and obtain available investment opportunities for energy audit projects.

Eight initiatives have been launched, including an updated regulation for licensing energy efficiency service providers, aimed at identifying the necessary requirements for licensing investors who are interested in the sector in Saudi to ensure the quality of their work and protect the rights of their customers. In addition a second edition of the “National Measurement and Verification Guide” has been issued.

The guide has been aligned with the global “EVO” organisation to ensure there is compliance with the latest international practices in this field. Furthermore, a regulation for independent energy auditors has also been introduced to grant licenses to individuals to provide energy audit services for the residential and commercial sectors and offer energy audit services to facility owners on a wide geographical basis.

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Saudi Arabia: Insurance Authority Cybersecurity Subcommittee Established

Al-Watan, 19 May 2024: The Insurance Authority has approved the establishment of a Cybersecurity Subcommittee.

This initiative aims to strengthen the cybersecurity framework within the Kingdom’s insurance sector.

The Cybersecurity Subcommittee aims to ensure the Saudi insurance sector’s commitment to implementing, supporting, and following up on comprehensive cybersecurity programmes, legislation, and strategic frameworks approved by regulatory authorities.

In its role, the subcommittee will focus on several key areas, including facilitating the integration of new cybersecurity regulations and practices into the daily operations of insurance companies, providing expert guidance, and supervising cybersecurity trends and performance in the insurance sector.

It will also follow up on the implementation of approved cybersecurity programmes and initiatives, and improve collaborative efforts among stakeholders to share best practices on cyber security.

The Chairman of the Executive Committee for Insurance Companies has stated that the creation of the Cybersecurity Subcommittee marks a significant commitment by regulators and stakeholders to safeguard the Saudi insurance sector amid digital transformation.

He has also noted that the committee includes experienced stakeholders and cybersecurity specialists, fostering a collaborative approach. for the full story, click here.

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Saudi Arabia: HR Ministry To Start Wage Protection Service

The Human Resources Ministry and Social Development has announced its decision to implement a Wage Protection Service related to salaries of domestic workers through the Musaned platform.

In the first phase, the Wage Protection Service will be implemented for domestic workers arriving under new contracts, starting from 1 July 2024.

Existing house workers will gradually transition into the system in stages, based on the number of domestic workers each employer has.

By 1 January 2026, all categories of domestic workers will be covered by this service.

This service continues the ministry’s initiatives to develop the domestic workers sector and safeguard the rights of both workers and employers.

It aims to ensure salary payment transparency and facilitate it through digital wallets and approved banks via the ministry’s Musaned platform.

Enhancing the security and reliability of wage transfers preserves the rights of all parties involved in the contracts.

The new service will be implemented for employers with more than four domestic workers starting from 1 January 2025.

For employers with three or more workers, it will begin on 1 July 2025, while those with two or more workers will have it on 1 October 2025.

The service has been available on the Musaned platform since 1 April 2022, receiving positive feedback and interaction from customers and contractual parties.

The service of paying domestic workers’ salaries through specific official channels offers several benefits for the employer.

It improves the verification of salaries, simplifies procedures related to the worker’s termination or travel, and provides protection for both the employer and the worker in case of disputes.

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Saudi Arabia: Draft Regulations on Road Work Permits

Okaz, 2 May 2024: The General Authority for Roads has drawn up a draft regulation on road permits, to clarify the requirements and procedures for obtaining permits to conduct roadworks.

According to the regulations, the permit holder must collaborate with relevant authorities on the planned work.

They must also submit a plan outlining temporary safety measures for road users during the work and, if necessary, a plan for permanent safety measures.

The draft has also outlined the application submission process for obtaining permits.

Those intending to conduct road works must submit an application to obtain the necessary permit via the platform.

The Authority must review the permit application within 10 working days to ensure completeness and verify that all necessary requirements have been met.

This period can be extended for similar length depending on the nature of the permit and the planned work.

The permit may also be extended for a specific period if there is a request from the applicant 60 days before the expiry of the term.

Those granted permits will be subject to oversight, follow-up, and evaluation by the Authority.

The Authority, or its appointed representatives, will have the right to ensure compliance with permit requirements, as well as on the application of approved specifications and standards.

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Saudi Arabia: Fuel Stations Must Provide Electric Chargers

Aleqtisadya, 30 April 2024: It has been claimed by informed sources that petrol stations in Saudi Arabia, in particular those located on highways, are to be required to provide places and devices for charging electric cars.

The petrol stations will have to adopt particular specifications and standards for the charging devices and on their locations.

It is also thought likely that public parks will also be required to provide special locations for charging electric cars, as these location are accessible and have a large amount of space.

According to the sources, government and private meetings have recently taken place on these new requirements. Service stations will be given the opportunity to suitably equip their premises when these regulations are issued.

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