The Ministry of Investment is drafting a new Investment Law that will treat local and foreign investors equally. Okaz/Saudi Gazette learned from informed sources that the ministry is currently conducting studies on various provisions of the draft law, which will come into force once it receives approval from the higher authorities.
The Ministry of Economic Affairs is working to facilitate procedures for attracting and protecting direct investments, improving the investment environment, protecting investor rights, and increasing investor confidence in local investments.
The draft law stipulates that foreign and local investors will be treated equally when it comes to direct investments.
Foreign investors will receive neutral treatment without discrimination, and they will be able to manage, sell, and dispose of their economic projects, as well as own the properties needed to ensure the smooth operation of the project.
Foreign investors are free to conclude commercial contracts; acquire, liquidate or sell any company, facilitate procedures and provide facilities with the availability of all the necessary support and assistance from all competent authorities.
Laws allow for the transfer of funds inside and outside the Kingdom, including proceeds and profits of economic projects.
Additionally, it includes selling it and liquidating it through regular channels using any recognized currency in the Kingdom or disposing of it by any other legitimate means; protecting intellectual property and confidential commercial information, and contacting the competent Courts or Arbitration Centers in the Kingdom.
A new law will contain provisions for imposing fines of up to SR500,000 on anyone who violates the law or its executive regulations after giving him a deadline to rectify the violation. Without rectification, the investor's registration or license will be revoked, as well as all or some of the investment facilities granted to the investor.
By ensuring equal opportunities in the treatment of direct investments made by private and public investors, the law supports the principle of neutrality and fair competition. The same approval requirements will apply to local and foreign investors for licenses and registration, as well as for approvals or permits for certain economic activities or special economic zones.
Under the draft law, direct investments may not be confiscated in whole or in part except under a court ruling, and they may not be expropriated in whole or in part except for the public good and in exchange for a just compensation.
