Updated Saudi Investment Law and its executive regulations will come into effect from the beginning of 2025

Eng. Khalid Al-Falih, Minister of Investment, declared that the revised Saudi Investment Law and accompanying executive rules will take effect on January 1, 2025. He said that the new law will strengthen the Kingdom's standing as a top international investment destination and present hitherto unheard-of prospects for investors.

Within the context of Vision 2030, the amended legislation is a fundamental component of the National Investment Strategy, emphasising the importance of investment in accomplishing all development objectives and broadening the sources of the country's economic resources. This new legislation gives investors more clarity, flexibility, and confidence by combining several existing freedoms and rights and explicitly applying them to them under a single, cohesive framework.

The revised law, which was created by the Saudi Arabian Ministry of Investment (MISA), adheres to international best practices and was developed after a thorough investor engagement process. The World Trade Organisation (WTO), the Gulf Cooperation Council (GCC), and other bilateral investment treaties and international commitments are all compliant with the legislation. 

International investment concepts serve as the foundation for the amended law.

1. Improved investor rights: These include the freedom to manage investments, the protection of intellectual property, the rule of law, equitable treatment, and smooth financial transfers.

2. Transparency and clarity: In line with global best practices, the amended legislation unifies investor rights and obligations under a single legislative framework. 

3. Relaxed regulatory restrictions: International investor license will be replaced with a streamlined registration process. 

4. Simplifying processes and governance: By using specialised service centres, government transactions and investment processes may be made more efficient. 

5. Fair competition: The law promotes a market that is both fair and competitive, allowing private businesses to prosper in a creative and dynamic environment. 

6. Levelling the playing field: Treating domestic and foreign investors equally throughout the legal process without discrimination. 7. Efficient conflict resolution: Through connection with Saudi Arbitration Centre and other affiliates, you may access the best-in-class dispute settlement.

The Ministry of Investment collaborated with various government agencies to draft the Investment Law. Additionally, the law was thoroughly consulted with numerous international organisations and investor opinions were gathered to guarantee compliance with global best practices. 

The legislation serves as a cohesive framework for investors' rights and obligations, bolstering the Kingdom's well-established legal system, equitable treatment, property rights, investment management freedom, intellectual property protection, and seamless money transfers. Additionally, the law promotes the adoption of alternative conflict resolution procedures among parties involved.