Saudi Arabia has unveiled its investment law as part of a major push to attract foreign investment. This new legislation, a part of the kingdom’s Vision 2030 reform agenda, aims to create a more transparent, efficient, and secure business environment.

The legislation offers stronger protections for investors by emphasizing adherence to the rule of law, fair treatment, and the safeguarding of property and intellectual property rights. It also ensures the smooth transfer of funds.

The law simplifies the registration process by replacing cumbersome licensing requirements with a streamlined system and introducing new service centers to expedite government transactions and investment procedures.

This overhaul builds on previous investment-friendly initiatives, including the enactment of the Civil Transactions Law, Private Sector Participation Law, Companies Law, and Bankruptcy Law and the creation of Special Economic Zones.

The government is committed to fostering a level playing field for domestic and international businesses. Saudi officials have hailed the new law as a game-changer, underscoring the kingdom’s rapid economic transformation. With a recent surge in foreign direct investment and gross fixed capital formation, the government is confident that the updated framework will further accelerate growth.

Saudi Arabia’s pro-investment policies have already yielded significant results, with gross fixed capital formation rising by 74 percent to nearly $300 billion in 2023 and foreign direct investment (FDI) inflows increasing by 158 percent, from $7.46 billion in 2017 to $19.3 billion in 2023.

The new regulations will take effect in 2025 and are designed to align with Gulf Cooperation Council and World Trade Organization standards and other international investment agreements.

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