Saudi Arabia revises Investment Law to gain Global Investor trust

Saudi Arabia revises Investment Law to gain Global Investor trust

 

The revised Saudi Investment Law and its related executive rules will be coming into force at the start of the year 2025, according to Minister of Investment Eng. Khalid Al-Falih. He stated that the new law will make the Kingdom an even more attractive investment destination for international businessmen and would open doors never before seen. Most Viewed : New amendments to Saudi Labor Law

He went on to say that the revised legislation “confirms the Kingdom’s commitment to providing an attractive, supportive and safe environment for local and foreign investors” and that it was an expansion of the many development initiatives already undertaken by the kingdom.

Al-Falih made these comments after the Saudi Council of Ministers recently approved the Investment Law and associated executive rules. Reforms announced earlier as part of Saudi Vision 2030 and the National Investment Strategy are in line with the revised law. Despite a worldwide downturn in foreign direct investment (FDI), the law shows that Saudi Arabia is always available for business.

The revised regulation is a foundation of the National Investment Strategy, which in turn is based on Vision 2030 and the importance of investment to achieving comprehensive development objectives and enhancing the economy’s resource diversification. To provide investors more clarity, freedom, and assurance, the new law strengthens and specifically applies a number of preexisting rights and freedoms inside a single, unified framework.

According to Eng. Al-Falih, the goal of the revised law is to drive economic growth by making Saudi Arabia a more attractive and secure location for investors. At a time when many other markets are going through a lot of instability, investors can invest with confidence and see their investments grow thanks to the policy direction laid forth in Vision 2030. According to him, the new investment law is part of a larger effort to diversify the economy and improve people’s quality of life through measures like the creation of special economic zones and other investment-specific policies. Join Saudi Expatriates WhatsApp channel

The revised legislation is in accordance with international standards and was developed by the Ministry of Investment of Saudi Arabia (MISA) after significant investor engagement. Additionally, the law complies with all applicable international and bilateral investment agreements, including those of the Gulf Cooperation Council (GCC), the World Trade Organization (WTO), and others.

International investment principles formed the basis of the revised legislation.

1. Improved investor protections : Rule of law, equity, property rights, protection of intellectual property, independence in investment management, and trouble-free money transfers are all benefits that investors will enjoy.

2. Consistency and Transparency : The new legislation clarifies and streamlines investor rights and responsibilities in accordance with global standards.

3. Eased Regulatory restrictions : Streamlined registration will take the place of foreign investor licensing, which will relax regulatory constraints. Read : Saudi Arabia is the top country in GCC states that visiting India

4. Improving governance and streamlining procedures : Establishing specialized service centers to ease government transactions and investment procedures.

5. Fair competition : The legislation promotes a market that is both fair and competitive, allowing private firms to succeed in an environment that is both dynamic and innovative.

6. Leveling the playing field : Treating domestic and foreign investors equally in all procedural matters.

7. Effective Dispute resolution : Connections to world-class dispute resolution through the Saudi Arbitration Centre and other partners.

In each of the past six years, developed economies have enacted new investment policies that do not constitute pro-investment initiatives, as stated in the United Nations Trade and Development’s World Investment Report 2024. The Civil Transactions Law, the Private Sector Participation Law, the Companies Law, the Bankruptcy Law, and the Special Economic Zones are some of the pro-investment policies that Saudi Arabia has enacted in the last several years. Along with incentives, facilities, and enablers, these actions and advancements have prompted investors to seek out an investment environment that is positive, supportive, and stable. Recommend : Free wheelchair at Makkah Grand Mosque for elderly and people with disabilities

Foreign direct investment (FDI) inflows increased by 158 percent, from $7.46 billion in the Year 2017 to $19.3 billion in 2023, while gross fixed capital creation increased by 74 percent, from the year 2016 to approximately $300 billion in 2023.