Alqesair Law

Sunday– Thursday: 9.00 am – 8.00pm

l_alqesair@gmail.com

Ali Bin Abi Talib Road – Buraidah – Kingdom of Saudi Arabia

The latest developments in the field of foreign investment

Saudi Arabia, under the ambitious Vision 2030, has been fervently working to create unprecedented investment opportunities by implementing numerous economic reforms. These efforts aim to shape new business prospects, enhance the Kingdom’s key strategic assets, stimulate economic growth, and diversify and expand investment opportunities.


One of the Kingdom’s key initiatives under Vision 2030 is the establishment of a dedicated Ministry of Investment, whose primary role is to facilitate investors’ access to opportunities through streamlined and flexible processes.


Additionally, the Kingdom has issued several regulations as part of a series of legislative reforms related to investment. Among the most significant is the updated Investment Law, issued under Royal Decree No. (M/19) dated 16/1/1446 AH. This law clarifies the rights and obligations of investors, fostering greater transparency and trust. It also ensures equal opportunities, simplifies procedures and governance, and enhances dispute resolution mechanisms.


Key Features of the Updated Investment Law:

  • Equal Opportunities: Ensures equality between local and foreign investors under similar conditions.
  • Enhanced Investor Rights: Provides fair treatment, protection of intellectual property, freedom in managing investments, and the ability to transfer funds without delay.
  • Transparency and Clarity: Establishes a unified framework outlining the rights and obligations of local and foreign investors, in line with international best practices.
  • Fair Competition: Promotes healthy competition between the public and private sectors.
  • Reduced Regulatory Barriers: Replaces the licensing requirement for foreign investors with a registration process, allowing them to engage in economic activities immediately afterward.
  • Simplified Procedures and Enhanced Governance: Introduces a one-stop service center to facilitate governmental transactions, provide necessary support, and streamline investment entry processes.
  • Effective Dispute Resolution: Grants investors the right to resort to arbitration, mediation, and reconciliation, as well as access to the competent courts when needed.

 

Investment Capital:


Investment in Saudi Arabia can be carried out by individuals or legal entities, whether local or foreign, through their capital. This capital includes any asset with monetary, tangible, or intangible value used to establish, expand, finance, partially or wholly own, or manage an investment project to achieve economic benefits. Article 1 of the Investment Law specifies that investment capital includes the following:

  • Shares and stakes in companies.
  • Contractual rights.
    Fixed or movable assets.
  • Intellectual property rights.
  • Rights granted under licenses, permits, or equivalent authorizations.
  • The law excludes loans, bonds, sukuk, and other public or private debt instruments.


Investor Rights and Obligations:

Investors are required to comply with the Kingdom’s laws and regulations while enjoying their rights as stipulated in Article 4 of the law, without prejudice to other relevant regulations. These rights include:

  • Equal treatment with other investors, whether local or foreign, under similar circumstances.
  • Fair and equitable treatment.
  • Protection against full or partial confiscation of investments except by a final judicial ruling, and protection against expropriation except for public interest with fair compensation according to legal procedures.
  • Freedom to transfer funds into and out of the Kingdom without delay—this includes revenues, profits, sale proceeds, or liquidation—using any recognized currency through official channels.
  • Freedom to manage investments, dispose of them legally, and own assets necessary for operations.
  • Protection of intellectual property and confidential commercial information.
  • Administrative support and facilitation of procedures by the competent authorities.
  • The Ministry provides investors with statistical data and essential services to streamline investment-related processes. Complaints filed by investors are addressed transparently and efficiently under clear protocols.

 

You can request foreign company establishment services through the following communication channels:

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