Investment Funds & PE Accounting & Advisory Saudi Arabia

Investment Funds & PE Financial Compliance in Saudi Arabia

Our Investment Funds & PE sector clients include CMA-regulated fund managers, private equity funds, venture capital funds, REIT operators, and family office investment vehicles. These businesses require financial advisors who understand not just general accounting standards, but the specific ZATCA treatment, sector regulatory requirements, and Vision 2030 compliance obligations that apply to their industry.

Saudi Arabia's investment fund sector has grown significantly with Tadawul's REIT market, the PIF's investment programme, and the surge in domestic VC funding. CMA regulation of funds creates demanding accounting and audit obligations:

• NAV calculation and validation: The Net Asset Value of a fund must be calculated accurately at each valuation date — using fair value for listed securities, Level 2 or 3 valuation for unlisted investments, and correct accrual of management fees, carried interest, and fund expenses. NAV errors affect unit pricing and investor redemptions.
• Carried interest accounting: PE fund carried interest creates complex accounting under IFRS 2 (if structured as equity compensation) or IFRS 9 (if structured as a financial instrument). The timing of carried interest recognition, reversal on clawback provisions, and Zakat treatment are all significant accounting judgements.
• CMA disclosure requirements: Listed REITs and public funds must disclose financial information quarterly to CMA within prescribed timelines. The financial statements must be prepared under CMA-specified accounting policies and audited by a CMA-approved auditor.