ALBAWABA – Saudi Arabia unveiled its updated investment law for foreign investors recently. The new law falls under Saudi Vision 2030 and aims to facilitate new strategies for international investors. The newly updated investment law was developed by the Ministry of Investment and will take effect in 2025.
New law in Saudi Arabia for foreign investors
The new law provides more protections for international investors in the kingdom like adherence to the rule of law, fair treatment, and property rights. The updated law will also facilitate for more property protections and easy cash transfer procedures.
As the new law aims to provide high transparency and easy operations, it will enable a simpler registration system and it will introduce new services that work best for foreign investors and business owners in the country.
Additionally, the new updated law pursues diverse investment measures in the kingdom like the introduction of the Civil Transactions Law, Private Sector Participation Law, Companies Law, Bankruptcy Law, and the creation of Special Economic Zones.
It is worth noting that the new updated investment law is remarkable as it guarantees fair and smooth interactions for both domestic and international business investors. (Shutterstock)
Khalid Al-Falih, the Saudi Investment Minister, said: “The law reaffirms Saudi Arabia’s commitment to creating a welcoming and secure environment for investors, driving economic growth, and enhancing the Kingdom’s position as a premier global investment destination.”
Al-Falih added: “The policy direction outlined in Vision 2030 allows investors to invest with certainty and to grow with confidence at a time when many other markets are experiencing considerable volatility.”
It is worth noting that the new updated investment law is remarkable as it guarantees fair and smooth interactions for both domestic and international business investors. The laws developed by Saudi Arabia showed previously a significant surge in economy and businesses.
Gross fixed capital formation (GFCF), also known as “investment” increased by 74% ($300 billion) in 2023, while foreign direct investment (FDI) flows, the value of cross-border transactions related to direct investment over time, increased by 158% ($7.46 billion to $19.3 billion) from 2017 to 2023.
