Saudi Arabia’s Council of Ministers approved an updated investment law that increases transparency and facilitates investment processes in the kingdom.
Saudi Arabia’s Minister of Investment, Khalid Al Falih, highlighted that “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 local investment destination.”
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Long term goals
The updated law further aligns policy with Saudi Arabia’s Vision 2030 and its National Investment Strategy.
Vision 2030 is a long term plan to economically and socially transform Saudi Arabia. One of its main objectives is to decrease the country’s heavy reliance on the oil sector. Attracting foreign investment, capital and expertise is seen as essential part of this plan.
Some other business friendly regulations in recent years include the civil transactions law, private sector participation law, companies law, bankruptcy law, and tax incentives in special economic zones.
The country’s objective is to attract more than $100bn in FDI a year by 2030.
What are the changes?
The Minister of Investment says the update guarantees the rule of law, fair and equal treatment and freedom to transfer funds without delay.
The main additions are the replacement of foreign investor licenses with a streamlined registration process, specialised service centers for investors, alternate dispute resolution options, and more.
The reforms are set to be implemented in early 2025.
