Saudi Ministry of Investment Systems Updates

The Ministry of Investment in Saudi Arabia has announced new updates to the investment system, aimed at enhancing the investment environment and providing a favorable and attractive climate for both local and foreign investors. This update includes ensuring equal treatment of all investors, facilitating the process of transferring funds within and outside the Kingdom, and providing a comprehensive definition of capital while excluding debt instruments from its scope. This reflects the Kingdom's commitment to improving the investment environment and enhancing its competitiveness.

Equal Treatment:

The updated investment system, approved by the Council of Ministers, emphasizes the importance of ensuring equality in the treatment of local and foreign investors. This update aims to provide equal opportunities for investors, thereby fostering a fair and transparent investment environment. This includes:
- **Equal Treatment**: Providing fair and equitable treatment for all investors without discrimination.
- **Protection of Investor Rights**: Ensuring that investments are not expropriated wholly or partially except by a final judicial ruling, and that investor property is not taken except for public interest and in accordance with legal procedures and fair compensation.

Freedom of Fund Transfers:

The new system allows foreign investors to transfer their funds within and outside the Kingdom without delay. This includes transferring investment returns, profits, and proceeds from sales or liquidation through legal channels, using any recognized currency. This update reflects the Kingdom's commitment to providing the highest levels of convenience and flexibility in financial transactions, which contributes to attracting more foreign investments.

Comprehensive Definition of Investor:

The new system provides a comprehensive definition of an investor, covering both local and foreign investors. Unlike the previous foreign investment system, which focused solely on foreign investors, the updated system recognizes local investors as natural or legal persons who engage in investment and hold Saudi nationality. This update aims to enhance integration among various investor categories and provide a unified investment environment.

Capital Scope:

The updated system defines capital more precisely and comprehensively, including shares and stakes in companies, contractual rights, fixed or movable assets, and intellectual property rights. Conversely, the system excludes loans, bonds, financing sukuk, and public and private debt instruments from the scope, clarifying the range of investments covered by the system.

Investment Data:

Government data indicates that net foreign direct investment inflows to Saudi Arabia increased by 5.6%, reaching 9.5 billion riyals in the first quarter of 2024. The Kingdom aims to attract 100 billion dollars in foreign direct investment by 2030 as part of a comprehensive strategy to diversify the economy away from reliance on crude oil exports.

Call for Investment:

Abshir Administrative Services Company invites all investors to take advantage of the new updates and promising investment opportunities in Saudi Arabia. We are here to provide full support and administrative and consulting services to achieve sustainable success in the largest investment opportunities.

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