The Saudi government is currently considering a law proposal, which would encourage fair competition, increase business opportunities as well as attract foreign investments. The new law, proposed by the Saudi ministry of commerce, bans monopolies or the establishment of any body which would hinder free movement of goods or control prices, reported Arab News.
In addition, no commercial institution may hold more than 35 percent of a certain market. The law also prohibits mergers that are deemed threatening to the national economy. Mergers, which would strengthen the Saudi market, however, would be acceptable under the proposal.
These regulations apply to private organizations alone. State-owned enterprises or government establishments need not comply with the new measures. The law is aimed at repatriating Saudi funds, increasing confidence in the national economy, luring foreign capital and protecting national industries. — (MENA Report)
© 2001 Mena Report (www.menareport.com)
