KSA unveils updated investment law to facilitate foreign investors

FE Team | Published: August 11, 2024 23:41:52

RIYADH, Aug 11 (Arab News): The Kingdom of Saudi Arabia (KSA) has announced a significant overhaul of its investment law as part of its Vision 2030 reform strategy, aiming to strengthen its appeal to international investors.
The revised legislation integrates existing investor rights and freedoms into a unified framework designed to improve transparency and ease of business operations.
The updated law promises enhanced protections for investors, including adherence to the rule of law, fair treatment, and property rights, while ensuring robust safeguards for intellectual property and facilitating smooth fund transfers.
It streamlines the registration process, replacing complex licensing requirements with a simpler system, and introduces new service centres to expedite government transactions and investment procedures.
The update follows a series of pro-investment measures, including the introduction 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 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."
He 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."
The law also aims 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 shown significant results, with gross fixed capital formation surging 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 an enhanced quality of life offering to investment specific measures such as the establishment of special economic zones," said Al-Falih.
The updated regulations, developed by the Ministry of Investment, will take effect in 2025 and are designed to align with Gulf Cooperation Council and World Trade Organization standards, as well as other international investment agreements.
Commenting on the development, Saudi Finance Minister Mohammed Al-Jadaan wrote on X that the revised law is a significant "update to the investment regulatory framework that contributes to private sector investment growth opportunities and a more competitive economy under the Saudi Vision 2030."