Saudi Arabia Investment Law
Introduction
On 11 August 2024, the new investment law of Saudi Arabia was published pursuant to Saudi Arabia Royal Decree No. M19/1446 Investment Law (Saudi Arabia Cabinet Decision No. 40/1446 Investment Law). Saudi Arabia Royal Decree No. M19/1446 (Saudi Arabia Cabinet Decision No. 40/1446) replaces the foreign investment law issued by Saudi Arabia Royal Decree No. M1/1421 On the Approval of the Foreign Investment Law (Saudi Arabia Cabinet Decision No. 1/1421 Approving the Foreign Investment Law).
Analysis
Key objectives behind the change
The aim and objectives are listed in article 2 of Saudi Arabia Royal Decree No. M19/1446 (article 2 of Saudi Arabia Cabinet Decision No. 40/1446), which refers to development and enhancing the competitiveness of the investment environment in the Kingdom, contributing to economic development, and creating job opportunities by providing an attractive investment climate, in accordance with relevant laws. This includes the following:
Facilitating the establishment of investments, ownership of assets therein, and the exit therefrom or liquidation thereof.
Guaranteeing and promoting the rights of investors.
Guaranteeing equal treatment for local and foreign investors.
Promoting the principle of competitive neutrality and fairness and ensuring equal opportunities in investment.