عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Updates Investment Law to Attract Foreigners

 Qiddiya project in Saudi Arabia (Vision 2030 website)
 Qiddiya project in Saudi Arabia (Vision 2030 website)
TT
TT

Saudi Arabia Updates Investment Law to Attract Foreigners

 Qiddiya project in Saudi Arabia (Vision 2030 website)
 Qiddiya project in Saudi Arabia (Vision 2030 website)

Saudi Arabia announced the approval of an updated investment law, which is expected to enter into force in early 2025, with the aim of attracting foreign investors, developing the competitiveness of its investment environment, contributing to supporting economic diversification, and creating job opportunities in line with Vision 2030 and the objectives of the national strategy.
The updated investment system, which was approved by the Council of Ministers, is one of the pillars of the National Investment Strategy, which seeks to diversify the local economy and to attract more than $100 billion in foreign direct investment annually by 2030.
The new system includes many advantages, most notably: enhancing investors’ rights through fair treatment, protecting intellectual property and freedom to manage investments and transfer funds smoothly, promoting transparency and clarity in procedures in line with leading practices, and contributing to creating a reliable investment environment.
Under the new law, foreign investor licenses will also be replaced with a simplified registration process, and new service centers will be introduced to expedite government transactions and investment procedures.
The updated law also seeks to give investors greater protection and confidence, and promote a dynamic and stimulating environment for investment. It also provides fair treatment without discrimination between local and foreign investors, while working to resolve disputes efficiently in cooperation with the Saudi Center for Commercial Arbitration and other parties.
Saudi Investment Minister Khalid Al-Falih said that the law reaffirms Saudi Arabia’s commitment to creating a welcoming and secure environment for investors, driving economic growth, and enhancing the Kingdom’s position as a premier global investment destination.
He added that the policy direction outlined in Vision 2030 allows investors to invest with certainty and to grow with confidence at a time when many other markets are experiencing considerable volatility.
Al-Falih underlined that the updated investment law builds on an extensive diversification agenda from an enhanced quality of life offering to investment specific measures such as the establishment of special economic zones.
For his part, Saudi Finance Minister Mohammed Al-Jadaan wrote on X that the revised law is a significant “update to the investment regulatory framework that contributes to private sector investment growth opportunities and a more competitive economy under the Saudi Vision 2030.”
Minister of Municipalities and Housing Majid Al-Hogail stressed that the updated investment system enhances the creation of a competitive investment environment that consolidates Saudi Arabia’s position as a leading global destination, in fulfillment of the Kingdom’s vision.
In remarks to Asharq Al-Awsat, member of the Energy Economics Association and the Saudi Economic Society, Advisor Dr. Abdullah Al-Jassar, stressed that the updated investment law represents an important step towards achieving the desired economic transformation of Vision 2030.
He expected that this system would contribute to achieving sustainable economic growth, creating job opportunities, diversifying sources of income, and enhancing the Kingdom’s position as an attractive investment destination in the region.

 

 

 

Most Viewed

 
 
Business

Urgent Financial Tasks Await Lebanon’s Emerging Government

Lebanese President Joseph Aoun stands between Speaker of Parliament Nabih Berri and caretaker Prime Minister Najib Mikati (dpa)
Lebanese President Joseph Aoun stands between Speaker of Parliament Nabih Berri and caretaker Prime Minister Najib Mikati (dpa)
TT
TT

Urgent Financial Tasks Await Lebanon’s Emerging Government

Lebanese President Joseph Aoun stands between Speaker of Parliament Nabih Berri and caretaker Prime Minister Najib Mikati (dpa)
Lebanese President Joseph Aoun stands between Speaker of Parliament Nabih Berri and caretaker Prime Minister Najib Mikati (dpa)

A broad internal consensus, encompassing both political and economic dimensions, is taking shape to adopt the principles outlined in the presidential inauguration address as the foundation of the new government’s program and ministerial statement. This approach aims to sustain Lebanon’s immediate and strong positive momentum, which is reinforced by widespread support on both Arab and international levels.

Economic bodies and professional unions representing business sectors have openly expressed their relief and full support for the strategic directions set by President Joseph Aoun following his election. However, they have made it clear that maintaining this positive momentum depends on the formation of a reform-oriented rescue government, composed of competent, experienced, and honest ministers. This government must also collaborate constructively with the president.

According to a senior financial official, the rescue mission will be challenging due to years of governmental inaction and constitutional voids, which led to a deterioration in public sector operations and the accumulation of economic, financial, and monetary crises over the past five years. These challenges were further compounded by a devastating war, which inflicted severe human and financial losses estimated at approximately $10 billion, thereby worsening the country’s financial gap, now estimated at $72 billion.

Economic and banking circles are looking to the new government to swiftly capitalize on extensive international support by restoring trust and reestablishing financial channels between Lebanon and its regional and international partners. Key to this effort are explicit and transparent commitments to combating illegal economic activities, corruption, smuggling, money laundering, and drug trafficking. In parallel, the government must prioritize strengthening judicial independence and implementing strict controls over land, sea, and air borders.

The national consensus evident in the presidential election, according to Mohammad Choucair, head of Lebanon’s economic associations, paves the way for constructive collaboration among political factions. This collaboration is crucial for addressing challenges, rebuilding the state, and benefiting from renewed international and Arab—particularly Gulf and Saudi—interest in Lebanon. Choucair emphasized the importance of normalizing relations with Gulf nations, supporting Lebanon’s recovery, and providing resources for reconstruction efforts.

One of the urgent tasks for the new government, according to the financial official, is revisiting the draft 2024 state budget, which was previously submitted to parliament. Adjustments are necessary to address fundamental discrepancies in expenditure and revenue projections, taking into account significant changes brought about by the Israeli war.

Ibrahim Kanaan, chairman of the Parliamentary Finance Committee, described the budget as “unrealistic, if not entirely fictitious,” particularly in its revenue estimates. He pointed out that revenue increases were based on income and capital taxes, internal duties, and trade-related fees, all of which have been severely impacted by the war.

Reassuring depositors, both domestic and expatriate, who have suffered massive losses over recent years, is another pressing issue. These losses were exacerbated by the inability of successive governments to implement a comprehensive rescue plan addressing the $72 billion financial gap fairly. The situation was worsened by mismanagement in the electricity sector and the squandering of over $20 billion in central bank reserves following the onset of the financial crisis.

In response to Aoun’s commitment to a fair resolution for depositors, the Association of Banks in Lebanon welcomed his emphasis on safeguarding deposits. It also expressed its readiness to collaborate with the central bank and the government to protect depositors’ rights, citing a recent State Council ruling that prohibits any financial recovery plans from including measures that would erode depositors’ funds.

In its final session, the caretaker government addressed long-standing creditor issues by unanimously agreeing to suspend Lebanon’s right to invoke statutes of limitations on claims by foreign bondholders under New York law. This suspension, effective until March 9, 2028, aims to facilitate future negotiations.

With this decision, the caretaker government tacitly acknowledged Lebanon’s pending debt obligations, including over $10 billion in suspended interest payments on Eurobonds and approximately $30 billion in principal debt. The resolution now awaits direct negotiations under the new administration, which faces the challenge of resolving a nearly five-year-old crisis triggered by the previous government’s uncoordinated decision to halt payments on all Eurobond obligations through 2037.

Caretaker Finance Minister Youssef Khalil emphasized that despite the difficult circumstances, “Lebanon remains committed to reaching a fair and consensual resolution regarding the restructuring of Eurobond debt.”