September 2024

Saudi Arabia Sensitive Industries

Update

As part of attempts to attract investment, the Ministry of Investment of Saudi Arabia (“MISA”) has published a new ‘Investment Law’ (Royal Decree No. M19/1446) to replace the existing ‘Foreign Investment Law’ (Royal Decree No. M1/1421).

Among other things, the Investment Law:

• Intends to apply to both domestic and foreign investors equally (subject to investment restrictions related to the ‘Negative List’ and excluded activities)
• Establishes a new simplified registration requirement for investors which will replace the existing foreign investment licensing process
• Increases protections for investors and their interests
• Differentiates serious and non-serious breaches

The Investment Law is scheduled to come into effect in February 2025, with implementing regulations expected to be issued within this period.

Our Thoughts

Saudi Arabia’s new Investment Law aims to attract investment by applying equally to domestic and foreign investors, establishing a simplified registration process, and enhancing investor protections. It differentiates between serious and non-serious breaches, reflecting a more nuanced regulatory approach. Scheduled to take effect in February 2025, the law represents a significant move towards diversifying the economy and improving its investment climate.

The above content is purely for information and does not purport to offer legal or professional counsel.