“The truth is for some time the business community in Saudi Arabia have felt the Kingdom's 1965 Companies Law needed overhauling. Many of the provisions had become dated as a result of more modern commercial complexities.”

“There has also been a number of amendments made to the 1965 law since it was initially issued and it was felt by some that it was time for a clean slate as a result of this," Amgad Husein explains.

“As a result, on 9 November 2015, the Saudi Arabian authorities announced a new Companies Law and a new set of company regulations, which had been approved by the Council of Ministers and the Shoura Council earlier in the year, would soon be adopted. They were then adopted with the passage of Royal Decree No. 3/1437 and Article 106 - Saudi Arabia Cabinet Decision No. 30/1437 in December 2015.”