The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for Resolution of Securities Disputes' (ACRSD) final decision No. (3871/L.S/2025) of 1447 H., dated 13/02/1447 H., corresponding to 07/08/2025, in the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)), against: The Middle East Financial Investment Company, Ibrahim bin Abdullah bin Rashid Alhudaithi, and Turki bin Abdullah bin Abdulrahman Alfawzan.
The decision concluded with the conviction of the abovementioned individuals and entity of violating Article (49) of the Capital Market Law and Article (7) of the Market Conduct Regulations, due to the act of the Middle East Financial Investment Company, in association with Ibrahim bin Abdullah bin Rashid Alhudaithi and Turki bin Abdullah bin Abdulrahman Alfawzan, when neglecting to disclose the material development related to the financial position of MEFIC REIT Fund, represented in the occurrence of a change in the financial position of the Fund upon its listing on 13/11/2018, compared to the financial position disclosed in the Terms and Conditions Memorandum dated 26/03/2018, made available to the public during the Fund's initial offering period from 04/04/2018 to 15/05/2018, which was lawfully required to be disclosed pursuant to the Instructions of the Traded Real Estate Funds issued by the CMA Board. Such change is represented in a decrease in the Fund`s unit book value upon its listing compared with the assumed value stated in the Terms and Conditions Memorandum by a percentage of (27.81%).
The decision included the imposition of a number of sanctions upon them according to the following:
First: The Middle East Financial Investment Company:
Imposing a fine upon the Company amounting to (SR. 81,250) eighty-one thousand two hundred and fifty Saudi Riyals.
Second: Ibrahim bin Abdullah bin Rashid Alhudaithi:
- Imposing a fine upon him amounting to (SR. 81,250) eighty-one thousand two hundred and fifty Saudi Riyals.
- Banning him from brokerage business, managing portfolios or working as an investment advisor for Two years.
Third: Turki bin Abdullah bin Abdulrahman Alfawzan:
- Imposing a fine upon him amounting to (SR. 81,250) eighty-one thousand two hundred and fifty Saudi Riyals.
- Banning him from brokerage business, managing portfolios or working as an investment advisor for Two years.
Furthermore, any person affected by the violations in this case is entitled to file a compensation claim (as individual or class action) with the CRSD for the damage he/she suffered from due to these violations, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following link: (File Complaint)
However, the GS-CRSD will announce to the public on its website in case of registering any class action in order to enable the rest of investors affected by such violations to apply to the CRSD to join the class action.
