Saudi Arabia expected to unveil updated business regulations to boost transparency and ease the process of investing in the kingdom. Published on August 11, 2024, and set to take effect in the upcoming weeks, this law aims to enhance the competitiveness of Saudi Arabia’s investment environment in alignment with Vision 2030 and the National Investment Strategy.

Key Features of the New Investment Law:

• Unified Framework for Investors: The law applies equally to both Saudi and non-Saudi investors, ensuring fair treatment under similar circumstances. This unified approach is designed to streamline processes and provide clarity for all investors.
• Transition from Licensing to Registration: Replacing the previous requirement for foreign investment licenses, the new law introduces a registration mechanism with MISA. This change is intended to simplify administrative procedures and offer greater flexibility to investors.
• Freedom of Investment: Investors are granted the freedom to invest in various sectors, except for certain activities that will be specified in a forthcoming list of “excluded activities” by MISA. This provision opens up more sectors to investment, promoting economic diversification.
• Investment Incentives: The law introduces the possibility of granting investment incentives, subject to specific eligibility and evaluation standards. These incentives aim to attract both local and foreign investments by providing additional benefits to qualifying investors.
• Dispute Resolution Mechanisms: Investors are permitted to utilize alternative dispute resolution methods, such as arbitration and mediation, to settle disputes. This provision offers more flexibility and efficiency in resolving conflicts.
• Enhanced Investor Protections: The law provides robust legal rights and protections, including guarantees against expropriation without compensation and the freedom to transfer funds related to investments. These measures are designed to foster a secure and predictable investment climate.

Watch this space for updates and get in touch with us if you have any questions.