The Ministry of Investment in the Kingdom of Saudi Arabia has announced new updates to the investment law, which aim to enhance the investment environment and provide a suitable and attractive climate for local and foreign investors. This update comes to ensure equal treatment for all investors, and to facilitate the procedures of transferring funds inside and outside the Kingdom, the new system also includes a comprehensive definition of capital and excludes debt instruments from its scope, reflecting the Kingdom’s commitment to improving the investment environment and enhancing its competitiveness.
: Equality in dealing
The updated investment law, which was approved by the Cabinet, emphasized the importance of ensuring equal treatment between local and foreign investors. This update aims to offer equal opportunities to investors, promoting a fair and transparent investment environment. This includes:
– Equal treatment: Providing fair and equitable treatment to all investors without discrimination
– Protecting the investor’s rights: Ensuring that investments are not confiscated in whole or in part except by a final court ruling, and that the investor is not expropriated except for the public interest in accordance with the statutory procedures and fair compensation .
Freedom to transfer funds
The new system allows foreign investors to transfer their funds inside and outside the Kingdom without delay, including the transfer of investment returns, profits, and sale or liquidation funds through legal channels, using any recognized currency, this update reflects the Kingdom’s commitment to providing maximum convenience and flexibility in financial transactions, which contributes to attracting more foreign investments.
Comprehensive Investor Definition
The new system includes a comprehensive definition of an investor, covering both domestic and foreign investors. Unlike the previous foreign investment system that focused solely on foreign investors, the updated system recognizes a local investor as a person of natural or legal status who makes an investment and enjoys Saudi citizenship. This update aims to enhance the integration of different categories of investors and provide a unified investment environment.
Capital Comprehensiveness
The updated system defines capital more precisely and comprehensively, to include shares and shares in companies, contractual rights, fixed or movable assets, and intellectual property rights. In contrast, the Regulation excludes loans, bonds, financing instruments, and public and private debt instruments, which clearly defines the scope of investments covered by the Regulation.
: Investment Data
Government data shows that net FDI inflows to Saudi Arabia increased by 5.6% to reach 9.5 billion riyals in the first quarter of 2024. The kingdom aims to attract $100 billion in foreign direct investment by 2030, as part of a comprehensive strategy to diversify the economy away from reliance on crude oil exports.
: Invitation to Investment
Absher Management Services invites all investors to take advantage of new updates and promising investment opportunities in the Kingdom of Saudi Arabia. We are here to provide full support, management and advisory services to achieve sustainable success in the largest investment opportunities.
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