S. Arabia approves updated investment law

Saudi Arabia’s Cabinet has approved an updated investment law, enhancing the country’s investment environment under Vision 2030 and the National Investment Strategy.

The law replaces the old international investor licensing with a streamlined registration process. It establishes service centres to expedite transactions. It promotes fair competition, supports both domestic and international investors, and provides access to top-tier dispute resolution through the Saudi Arbitration Centre.

Moreover, the new law integrates existing freedoms and rights into a unified framework, offering greater transparency, flexibility, and investor confidence. It aligns with international investment principles, ensuring the rule of law, fair treatment, property rights, and seamless fund transfers.

This reform is part of Saudi Arabia’s broader investment drive, which has seen a 74 per cent increase in gross fixed capital formation and a 158 per cent rise in FDI inflows from 2017 to 2023.

The updated law will take effect in 2025 and aligns with the Gulf Cooperation Council (GCC), World Trade Organization (WTO), and other international standards. Minister of Investment Khalid Al-Falih emphasised the law’s role in fostering a secure investment environment amid global market volatility.

Attribution: Saudi Press Agency (SPA)