FAQs for Implementing Regulations

A person authorised to perform management business according to the Authorized Persons Regulations, who is responsible for the management of the Fund’s assets.

A person nominated by the Fund Manager and responsible for the execution of the technical aspects to attain the Fund’s purposes.

Without prejudice to the rule of Real Estate Ownership for Non-Saudis in the Kingdom, subscription in the Fund is open to any Saudi, GCC citizens or non- Saudi residents in the Kingdom.

A potential investor can subscribe to the fund by visiting a fund manager's branch and pay the full unit value during the subscription period as per the fund's terms and conditions.

A fund manager shall provide the unitholder with a signed copy of the fund's terms and conditions, and send a subscription confirmations notice to the unitholder.

A person chosen by the Fund Manager, to evaluate the Fund’s assets, who should have the required knowledge and experience to provide Real Estate evaluation services. Evaluators and vlauers shall be active members of the Saudi Authority for Accreditied valuers (taqeem).

The purpose of these Rules is to regulate the public offering, registration and admission to listing of securities in the Kingdom.

These Rules shall not apply to the offering of units in investment funds.

A prospectus is not required for the issue of further securities by an issuer whose securities are already listed where: a) the securities to be issued would increase the securities of a class already listed by no more than 10%; b) shares issued as a result of capitalisation; c) an employee share scheme; d) shares issued as a result of the conversion of debt instruments convertible into shares of a class already listed; or e) split of shares already issued.

All announcements, notifications and reports must be in Arabic and the issuer may translate them into English. The Arabic language is the official language used to explain and interpret any and all announcements, notifications and reports. In case of contradiction between the Arabic version and the English version, the Arabic version shall prevail.

A person subject to provisions of these Rules may appeal to the Committee for the Resolution of Securities Disputes as stated in Article (25) of the Capital Market Law in respect of any decision or action that the Authority takes under these Rules.

Market manipulation means any act of or engage in manipulation, deception or misleading when trading securities. Manipulation has many forms, all aim at changing the price of a security for the benefit of a person through deceiving others. Another type of manipulation is when an investor places selling/buying orders for a security with the prior knowledge that other orders of substantially the same size, time and price for the purchase of that security will be entered; this manipulation may increase/decrease the price this security creating artificial false prices in the market. Such conduct may negatively affect other investors who are not aware of these per-arranged transactions. This conduct is prohibited as per Market Conduct Regulations issued by the Authority.

The following actions shall be among those considered as manipulative or deceptive acts or practices: a) making a fictitious trade; or b) effecting a trade in a security that involves no change in its beneficial ownership. Also, the following acts are among those considered as manipulative or deceptive acts or practices when committed for the purpose of creating a false or misleading impression of trading activity in a security or interest in the purchase or sale of the security, or for the purpose of creating an artificial bid price, ask price or trade price for a security: c) entering an order or orders for the purchase of a security with the prior knowledge that an order or orders of substantially the same size, time and price for the sale of that security, has been or will be entered; d) entering an order or orders for the sale of a security with the prior knowledge that an order or orders of substantially the same size, time and price for the purchase of that security, has been or will be entered; e) purchasing or making offers to purchase, a security at successively higher prices or in a pattern of successively higher prices; f) selling or making offers to sell a security at successively lower prices or in a pattern of successively lower prices; or g) entering an order or orders for the purchase or sale of a security in order to: • establish a predetermined sale price, ask price or bid price; • effect a high or low closing sale price, ask price or bid price; • maintain the sale price, ask price or bid price within a predetermined range; or • entering an order or a series of orders for a security that are not intended to be executed.

A security related to inside information shall mean any security whose price or value would be materially affected if the information was disclosed or made available to the public.

It is the information which: 1) relates to a security; 2) has not been disclosed to the general public, and that is not available to the general public; and 3) a normal person would realise that, in view of the nature and content of the information, disclosing it or making it available to the public would have a material effect on the price or value of the security.