Saudi Arabia Revamps Investment Law to Simplify Processes, Boost Foreign Interest

Saudi Arabia has announced a major revision to its investment law as part of its Vision 2030 reform strategy, aiming to bolster its attractiveness to international investors.

The updated legislation consolidates existing investor rights and freedoms into a cohesive framework designed to enhance transparency and simplify business operations.

The new law offers improved protections for investors, including adherence to the rule of law, fair treatment and property rights, while providing strong safeguards for intellectual property and facilitating seamless fund transfers.

It simplifies the registration process by replacing complex licensing requirements with a more straightforward system and introduces new service centres to accelerate government transactions and investment procedures.

This update follows a series of pro-investment measures, including the implementation of the Civil Transactions Law, Private Sector Participation Law, Companies Law, Bankruptcy Law and the creation of Special Economic Zones.

Saudi Investment Minister Khalid Al-Falih stated: “The law reaffirms Saudi Arabia’s commitment to creating a welcoming and secure environment for investors, driving economic growth, and enhancing the Kingdom’s status as a leading global investment destination.”

He continued: “The policy direction outlined in Vision 2030 allows investors to invest with certainty and grow with confidence, even as many other markets face significant volatility.”

The law also seeks to foster a competitive market environment by promoting fair competition and ensuring equal treatment for both domestic and international investors.

It provides access to advanced dispute resolution mechanisms through the Saudi Arbitration Centre and other affiliated entities.

Saudi Arabia’s investment-friendly policies have already yielded notable results, with gross fixed capital formation rising by 74 per cent to nearly $300 billion in 2023, and FDI inflows increasing by 158 per cent from $7.46 billion in 2017 to $19.3 billion in 2023.

“The updated investment law builds on an extensive diversification agenda, from enhancing quality of life to investment-specific measures such as the establishment of special economic zones,” said Al-Falih.

Developed by the Ministry of Investment, the new regulations will take effect in 2025 and are designed to align with Gulf Cooperation Council and World Trade Organisation standards, as well as other international investment agreements.

In a comment on X, Saudi Finance Minister Mohammed Al-Jadaan described the revised law as a significant “update to the investment regulatory framework that contributes to private sector investment growth opportunities and a more competitive economy under Saudi Vision 2030.”

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