New investment law guarantees equal treatment and replacing licensing with registration
11 Aug 2024
On 11 August 2024, Saudi Arabia issued an Updated Investment Law which repeals the Foreign Investment Law of 2000 and takes effect 180 days following its publication. Among the novelties introduced, the new law guarantees that local and foreign investors shall be treated equally under similar circumstances. The law also provides protection against expropriation, except pursuant to a final judicial ruling, legal procedures and in return for a fair compensation. Under the new law, foreign investors are no longer required to obtain a foreign investment license and shall instead register with the Ministry prior to engaging in any investment, as specified in the regulations. Prior to engaging in any investment activities included in the list of excluded activities, foreign investors shall apply to the Ministry for approval. Finally, the new law permits the competent authority shall grant investment incentives to investor in accordance with set eligibility criteria. UNCTAD assisted the Government of Saudi Arabia by providing technical support in the preparation of the law.
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Type:
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Entry and establishment (Approval and admission)
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Treatment and operation (Non-discrimination, Nationalizations and expropriations, Capital transfer and FOREX, Dispute settlement, Operational conditions )
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Promotion and facilitation (Investment facilitation , Investment incentives)
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Industry:
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