Saudi Arabia Introduces SPAC Listing Rules

Saudi Arabia is introducing a new route for companies to go public.

The Kingdom's Capital Market Authority (CMA) has approved a regulatory framework allowing Special Purpose Acquisition Companies (SPACs) to list on the Nomu Parallel Market, marking the first time Saudi Arabia has established dedicated rules for this type of investment vehicle.

Unlike traditional listed companies, SPACs do not operate a business of their own. Instead, they raise capital from investors with the intention of acquiring or merging with a private company, allowing that business to become publicly listed without going through a conventional initial public offering (IPO).

The new framework sets out how SPACs can be established, listed and operated in Saudi Arabia. Among the key requirements, SPACs must raise at least SAR 100 million, keep most investor funds in an escrow account until an acquisition is completed, and finalise a merger within 24 months, with a possible extension subject to shareholder approval. Investors will also have the right to vote on proposed acquisitions and redeem their shares if they choose not to participate in a deal.

The regulations are designed to give private companies an alternative route to the public markets while introducing safeguards to protect investors throughout the acquisition process.

For founders of mature private companies, the framework creates another option for accessing public capital beyond a traditional IPO. For investors, it offers a way to back companies before they enter the public market through a merger.

More broadly, the move expands the financing tools available within Saudi Arabia's capital markets. By introducing a dedicated SPAC framework, the Kingdom is creating additional pathways for companies to raise capital, encouraging more businesses to list locally, and supporting the continued development of its investment ecosystem as part of its Vision 2030 economic diversification agenda.