Key takeaways

• On August 12, 2024, Saudi Arabia’s Council of Ministers published an updated investment law, following the issuance of a draft for public consultation in April 2022 (see our previous analysis here). The new law replaces the Foreign Investment Law issued by Royal Decree No. (M/1) in August 2000 and will come into effect after 180 days (in February 2025).
• In line with broader economic diversification efforts, the law aims to create a more attractive and competitive investment environment by more clearly defining what constitutes an investment, strengthening the rights and protections for investors, and simplifying regulatory processes.
• Though the law as published closely resembles the draft version circulated in 2022, there are several key changes that have important implications for companies and investors seeking to do business in Saudi Arabia, including an enhanced framework for dispute resolution and reduced licensing requirements.
• Implementing regulations, which will outline the specific procedures and operational guidelines for enforcement, will be published before the law takes effect, and will likely be released for public consultation. Companies and investors should prepare to offer feedback and engage with sector regulators to discuss potential sector-specific incentive packages, as well as plan for longer-term engagement in the Kingdom.
• The updated investment law also opens the door for more active investment promotion by Saudi authorities, in turn creating additional opportunities for foreign companies in the Kingdom.

Read the full insights here.

About DGA Group

DGA Group is a global advisory firm that helps clients protect – and grow – what they have built in today’s complex business environment. We understand the challenges and opportunities of an increasingly regulated and interconnected world. Leveraging the experience and expertise of Albright Stonebridge Group, a leader in global strategy and commercial diplomacy, and a deep bench of communications, public affairs, government relations, and business intelligence consultants, we help clients navigate and shape global policy, reputational and financial issues. To learn more, visit dgagroup.com and albrightstonebridge.com. 

For additional information or to arrange a follow-up, please contact Juliana Rordorf and Imad Al-Abdulqader.