Saudi Arabia’s Investment Minister Khalid Al-Falih emphasized the Kingdom’s dedication to creating a supportive and secure environment for investors. The recent approval of the new Investment Law by the Council of Ministers marks a significant step in the Kingdom’s strategy to diversify its economy under Vision 2030.
Strengthening the Investment Environment
Minister Al-Falih expressed his gratitude to King Salman and Crown Prince Mohammed bin Salman for their unwavering support for the investment sector. He highlighted that the new law builds on various reforms to enhance the attractiveness and competitiveness of Saudi Arabia’s investment environment, particularly in regulatory and legislative aspects.
The new Investment Law reflects Saudi Arabia’s commitment to adopting global best practices. It revises the 25-year-old Foreign Investment Law, creating a comprehensive framework that caters to both local and foreign investors. This approach aligns with the Kingdom’s economic principles and long-term investment policies.
Vision 2030 and Regulatory Reforms
Since the launch of Vision 2030, Saudi Arabia has implemented a series of regulatory reforms to improve its investment climate. These reforms include the enactment of civil transactions, privatization, corporate, and bankruptcy laws, as well as the establishment of special economic zones.
Over the past few years, Saudi Arabia has undertaken more than 800 economic reforms to boost its global competitiveness. These efforts, led by the National Competitiveness Center in collaboration with relevant government entities, have significantly increased the Kingdom’s fixed capital formation by 74% since 2017, reaching nearly $300 billion in 2023. Foreign direct investment (FDI) also surged, with a 61% increase in FDI stock between 2017 and 2023, totaling approximately $215 billion. FDI inflows rose by 158% in 2023 compared to 2017, reaching 19.3 billion Saudi riyals.
Future Outlook and Implementation
Minister Al-Falih concluded by stating that the new Law will further stimulate economic growth and solidify Saudi Arabia’s position as a leading global investment destination. The law and its implementing regulations will come into effect in early 2025. For more information, interested parties can visit the Ministry of Investment’s website.
The development of the Investment Law involved extensive cooperation between the Ministry and various government agencies. The process included consultations with international organizations and feedback from investors to ensure alignment with global best practices. The law establishes a unified framework for the rights and obligations of investors, reinforcing key principles such as the rule of law, fair treatment, property rights, investment freedom, intellectual property protection, and smooth capital transfer.
Transparency and Fairness
The new law aims to simplify regulatory procedures with transparency and clarity, creating a flexible, fair, and competitive environment. It ensures equal opportunities and fair treatment for both local and foreign investors while promoting the use of alternative dispute resolution methods.
