International
Asia Pacific
EMEA
North America
Latin America
The Ministry of Investment of Saudi Arabia ("MISA") has published a new Investment Law (the "Investment Law"), which will replace the Foreign Investment Law issued by Royal Decree No. (M/1) dated 5/1/1421 H (corresponding to April 10, 2000) and its executive regulations issued by the resolution of the Board of Directors of the General Authority for Investment -MISA's predecessor - No. (2/74) dated 12/5/1435 H (corresponding to March 13, 2014).
The Investment Law aims to further Vision 2030 by facilitating the diversification of Saudi's economy and enhancing its competitiveness as a global investment hub. The law was drafted after conducting a thorough study with a detailed research methodology/ benchmarking exercise to consolidate best international practices. (Benchmark jurisdictions included Indonesia, Singapore, Germany, the U.A.E., Turkey, and the U.S.A.) The Investment Law will come into force 180 days after its publication in the Official Gazette and its implementing regulations will be issued within the same period.
Following are key takeaways from the new law:
The details of how the provisions of the Investment Law will be implemented (e.g., which activities will continue to be restricted for foreign investment, how the new registration process will work, what incentives will be offered) will need to await the issuance of the Implementing Rules and the actual practices followed under the new law. We will be providing further analysis in due course. Clearly, however, the Investment Law is a significant and positive step towards further developing Saudi's investment framework. Should you require assistance regarding any investment related matters, please feel free to contact us.
Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.
Are you sure want to delete comment ?
Scan this QR Code to share this content