The Ministry of Investment is currently drafting an Investment Law that will treat foreign and local investors equally. We’ve learned from reliable sources that the ministry is currently working on various draft law provisions.
The ministry works to improve the conditions for direct investment, protect investor rights, enhance the investment environment and increase investor confidence in local investments.
The draft law would apply the same treatment to foreign and local investors for direct investments.
Foreign investors will be treated equally without discrimination and will be able to sell, manage and dispose of their projects and own the properties necessary for smooth operation.
New Investment Law in Saudi Arabia
Foreign investors will be able to enter into commercial contracts, acquire, liquidate, or sell any company they choose, facilitate the process, and make available the support and assistance required by all authorities.
The law allows for the transfer of funds from within and outside the Kingdom. These include the transfer of profits and proceeds from the economic project.
You can also sell and liquidate it using regular channels using any recognized currency within the Kingdom, dispose of it by other legitimate means, protect intellectual property and confidential commercial information, and approach the relevant courts or arbitrators.
The new law will allow for fines up to SR500,000 imposed on anyone who violates any law or executive regulations. After giving the violator a deadline, the penalties can be rescinded. Investors who fail to rectify violations will have their registration or license revoked. They also lose all or part of any investment opportunities they were granted.
This law is intended to promote the principles of fairness, competitive neutrality, and fairness. It also ensures equal treatment for direct investments made by private and public investors. Both local and foreign investors will need to meet the same approval requirements for registration and licenses and approvals or permits in some economic regions or for certain activities.
The draft law prohibits the taking of direct investments, in whole or part, except in the case of a court ruling. It is also forbidden to confiscate them except for the public good and in return for fair compensation.