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New Companies Law Stimulates Saudi Commercial System

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
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New Companies Law Stimulates Saudi Commercial System

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

The Saudi Cabinet approved a new Companies Law in line with international best practices to promote the commercial system in the Kingdom.

Experts told Asharq Al-Awsat that amending regulations and legislation, including the current project, will attract more businesses to the country.

It improves establishment governance, facilitates the regulatory procedures, and reduces disputes by defining the foundations and principles.

The specialists said the new law would boost the competitiveness of the entry of international companies into the local market and accelerate the growth of the private sector.

Corporate protection

Minister of Commerce Majid al-Qasabi stressed that the new law had the utmost keenness and personal attention of Crown Prince Mohammed bin Salman in all the phases of its drafting.

He explained that the law is the product of more than two and a half years of work, covering the entire phases of evaluation, studying the international practices, analysis, formulation of policies, and drafting the regulation.

"The law features high flexibility to protect companies and enable the private sector to contribute mainly to achieving the goals of the Kingdom's Vision 2030," he said.

Chairman of the Federation of Saudi Chambers (FSC) Ajlan al-Ajlan explained that the new law is part of the development and reform system to improve the investment environment with the best international practices and address the challenges facing the business community with Vision 2030.

Commercial disputes

Professor of Commercial Law at the Institute of Public Administration (IPA) Osama al-Obaidi told Asharq Al-Awsat that the law will boost corporate governance principles, facilitate regular procedures and reduce disputes.

Obaidi explained that the law would stimulate and develop the business system and commercial activities, encouraging foreign investments and the entry of major international companies into the Saudi market.

The expert said the law provides protection and allows the private sector to effectively participate in implementing Vision 2030.

He added that the system allows the establishment of non-profit companies seeking development in several fields, including education and health.

Obaidi noted that the law facilitates the establishment of companies of various kinds and encourages bold investment, while addressing the challenges encountered by family businesses.

He expected the project to attract foreign companies and investments and bolster the international trade environment in the Kingdom by increasing the confidence of major global establishments in the Saudi economy and the local market.

Capital assistance

Head of the Saudi Center for Governance Nasser al-Sahli told Asharq Al-Awsat that the new Companies Law gives flexibility for the growth of facilities and investment in Saudi Arabia.

He explained that the law facilitates the procedures that international capitals seek.

Sahli added that the new law, established in line with best international practices, developed the government system and helped global capital. He explained that it addresses the business sector's challenges through participation between the public and private sectors.

The official indicated that the procedures and amendments in the regulations and legislation recently implemented by Saudi Arabia develop the commercial environment system to higher levels that keep pace with the country's future aspirations.

He noted that this also accelerates the growth of the private sector to reflect positively on the gross domestic product and elevate the Kingdom's position as a regional business hub.

The regulation addresses several forms and types of commercial, professional, and non-profit companies in a single legislative document and facilitates enterprises' establishment, sustainability, and expansion.

Shura member and head of the Trade and Investment committee Fahd al-Takhfifi explained that the new law would provide an incubating and stimulating regulatory environment for initiative and investment.

It will help develop companies' activities and support the national economy, which will positively reflect on the country's leading position and competitive advantages, according to Takhfifi.

Real estate brokerage

The Saudi Cabinet also approved the Real Estate Brokerage Law to regulate the services and reduce disputes.

Minister of Municipal and Rural Affairs and Housing Majed al-Hogail said the law helps govern transactions and ensures the brokerage contracts are reliable and can be referenced in pleadings.

He explained that the law covers all real estate activities and services and is exercised exclusively by licensed and qualified parties.

He noted that the regulation benefits the establishments, real estate brokerage, brokers, real estate auction owners, and property and facilities managers.

CEO of the Real Estate General Authority (REGA) Abdallah al-Hammad stressed that the law is a part of the legislation developed to maintain real estate rights.

It promotes the quality of services and reduces disputes, he remarked, adding that under the law, mediation is required by licensees.

The new law contributes to achieving Vision 2030, which aims to increase the Kingdom's global real estate indicators classification.

He asserted the Authority's keenness in following up on the digital transformation in real estate activities by improving the efficiency of services provided to the sector and developing human resources capabilities.

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Business

US Consumer Prices Likely Increased in February Ahead of Iran Conflict

09 December 2025, Saxony, Dresden: A woman walks into a supermarket. (dpa)
09 December 2025, Saxony, Dresden: A woman walks into a supermarket. (dpa)
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US Consumer Prices Likely Increased in February Ahead of Iran Conflict

09 December 2025, Saxony, Dresden: A woman walks into a supermarket. (dpa)
09 December 2025, Saxony, Dresden: A woman walks into a supermarket. (dpa)

US consumer prices likely picked up in February as the cost of gasoline increased in anticipation of an escalating war in the Middle East, and with the conflict driving up oil prices, a further rise in inflation is expected in March.

The anticipated increase in the Consumer Price Index last month would also reflect the continued, but staggered pass-through from President Donald Trump's sweeping tariffs, which he pursued under a law meant for use in national emergencies, that have since been struck down by the US Supreme Court.

The Labor Department's consumer inflation report on Wednesday is, however, expected to show underlying price pressures rising moderately last month, thanks to relatively cheaper used motor vehicles and airline fares. It is unlikely to have any impact on near-term monetary policy, with the Federal Reserve expected to keep interest rates unchanged next week.

"The February CPI is likely to show that progress on lowering inflation is stalling out again," said Sarah House, ‌a senior economist at Wells ‌Fargo.

"Although the conflict in the Middle East started at the end of February, oil ‌and ⁠gasoline prices were ⁠already rising last month in anticipation of an escalation," House said.

The CPI likely increased 0.3% last month after climbing 0.2% in January, a Reuters survey of economists predicted. Estimates ranged from a 0.1% rise to a 0.3% increase. In the 12 months through February, the CPI was estimated to have advanced 2.4%, which would match January's increase, and reflect last year's high readings dropping out of the calculation.

The US central bank tracks the Personal Consumption Expenditures price indexes for its 2% inflation target.

Economists estimated that gasoline prices rose by about 0.8% in the CPI report after declining for two straight months.

Prices at the pump have jumped by more than ⁠18% to $3.54 per gallon since the US-Israeli war on Iran started at the end of February, ‌data from motorist advocacy group AAA showed. Oil prices shot up well ‌above $100 per barrel, before pulling back on Tuesday after Trump stated the war could end soon.

UPSIDE RISK TO FOOD PRICES FROM WAR

"The ‌recent 15% move alone suggests a 0.15-0.30 percentage point lift to headline inflation depending on how the conflict evolves," said ‌Andy Schneider, a senior US economist at BNP Paribas Securities.

Food prices likely maintained a moderate pace of increase, though Schneider added "a sustained oil price shock would raise fertilizer and transportation costs that could push food inflation higher later in the year."

Excluding the volatile food and energy components, the CPI was forecast to have gained 0.2% after rising 0.3% in January. The so-called core CPI inflation was likely curbed by a ‌decline in used motor vehicle prices, as well as smaller increases in rents and airline fares.

But prices for goods like apparel and household furnishings likely increased solidly as businesses passed ⁠on tariffs. January's Producer Price Index ⁠report showed a widening in margins, including for apparel, footwear and accessories retailing.

Though businesses have absorbed much of the import duties, economists said they were unlikely to continue doing so, citing among others persistently higher readings of input costs in the Institute for Supply Management surveys.

Trump has responded to the Supreme Court ruling by imposing a 10% global tariff, which he said would rise to 15%.

"The trouble is that there is evidence that input costs continue to escalate, even as the level of tariffs has mostly stabilized," said Stephen Stanley, chief US economist at Santander US Capital Markets. "The pass-through dynamic could persist for a while."

In the 12 months through February, the core CPI inflation is forecast to have increased 2.5% after rising by the same margin in January, also reflecting favorable base effects.

Economists said the tame core CPI readings were unlikely to translate into moderate core PCE inflation gains in February. January's delayed PCE price index data due on Friday is expected to show a solid increase in core inflation.

"Weighting differences and unexpected strength in PPI service prices are likely to produce a significantly larger increase in the broader consumption index," said Lou Crandall, chief economist at Wrightson ICAP. "Similar effects are likely to give the core PCE price index an upward bias in the February data due out on April 9."

Business

Asian Shares Advance as Markets Await Signals on When the War with Iran May End

South Korean dealers work in front of monitors at the Hana Bank in Seoul, South Korea, 09 March 2026. (EPA)
South Korean dealers work in front of monitors at the Hana Bank in Seoul, South Korea, 09 March 2026. (EPA)
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Asian Shares Advance as Markets Await Signals on When the War with Iran May End

South Korean dealers work in front of monitors at the Hana Bank in Seoul, South Korea, 09 March 2026. (EPA)
South Korean dealers work in front of monitors at the Hana Bank in Seoul, South Korea, 09 March 2026. (EPA)

Asian shares were mostly higher Wednesday with several benchmarks giving up much of their early gains as investors awaited signals on when the war with Iran may end.

US futures rose and oil prices were mixed.

Tokyo's Nikkei 225 gained 1.3% to 54,926.50 and South Korea's Kospi picked up 0.6% to 5,562.40 after gaining more than 3% earlier in the day.

In Hong Kong, the Hang Seng fell back, slipping 0.2% to 25,921.02, while the Shanghai Composite index edged 0.2% higher to 4,131.39.

Australia's S&P/ASX 200 rose 0.6% to $8,743.50.

Taiwan's benchmark climbed 4.1% and the Sensex in India fell 1.1%. In Bangkok, the SET gained 1.3%.

Oil prices have remained sharply below their peaks hit on Monday. Such spikes have been rocking financial markets worldwide because of worries that the war could block the global flow of oil and natural gas for a long time.

“Asian equities and global futures managed to steady the ship today, helped by crude holding just below the psychologically charged $90 line. In the current regime, that single number functions less like a price and more like a pressure valve,” Stephen Innes of SPI Asset Management said in a commentary.

Early Wednesday, the price for a barrel of Brent crude, the international standard, was down 2 cents at $87.78. That’s about 10% below its settlement price the day before.

US benchmark crude oil gained 53 cents to $83.98 per barrel.

Oil prices plunged Monday afternoon from a high of nearly $120 per barrel, its most expensive level since 2022, after President Donald Trump told CBS News he thinks “the war is very complete, pretty much.” That raised hopes that the war may end relatively soon, which could allow oil to flow freely again from the Middle East to customers around the world.

However, both sides have sharpened their rhetoric as the war enters its 11th day. US Defense Secretary Pete Hegseth promised the most intense strikes yet while the Pentagon detailed the broader toll of injuries sustained by US troops.

The US said it took out more than a dozen minelaying Iranian vessels Tuesday, and Tehran vowed to block the region’s oil exports, saying it would not allow “even a single liter” to be shipped to its enemies.

One point where Trump has remained clear was his desire to keep the Strait of Hormuz open. The war has effectively blocked the waterway off Iran’s coast, where a fifth of the world’s oil sails on a typical day.

“If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far,” Trump said in a posting on his social media network late Monday.

On Tuesday, the S&P 500 dipped 0.2% to 6,781.48, a day after its latest wild swings caused by extreme moves in the oil market. The Dow Jones Industrial Average fell 34 points, or 0.1% to 47,706.51 and the Nasdaq composite edged higher by less than 0.1% to 22,697.10.

Oracle's shares on the Nasdaq surged 12% in premarket trading early Wednesday after the company reported its earnings and revenue jumped 20% in the last quarter, much better than analysts had forecast.

Stock markets have a history of bouncing back relatively quickly from military conflicts, as long as oil prices don’t stay too high for too long. Uncertainty about whether that may happen this time around has led to stunning swings up and down for markets worldwide, often hour-to-hour.

If oil prices do stay high for long, household budgets already stretched by high inflation could snap under the pressure. Companies would see their own bills jump for fuel and to stock items on their store shelves or in their data warehouses. It all raises the possibility of a worst-case scenario for the global economy, “stagflation,” where growth stagnates and inflation remains high.

In other dealings early Wednesday, the dollar rose to 158.08 Japanese yen from 158.05 yen. The euro rose to $1.1638 from $1.1610.

Business

Report: IEA Proposes Largest Ever Oil Release from Strategic Reserves

A display shows fuel prices at a petrol station in Munich, Germany, 10 March 2026. Fuel prices have risen since the start of US and Israeli military strikes on Iran and retaliatory attacks by Iran. (EPA)
A display shows fuel prices at a petrol station in Munich, Germany, 10 March 2026. Fuel prices have risen since the start of US and Israeli military strikes on Iran and retaliatory attacks by Iran. (EPA)
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Report: IEA Proposes Largest Ever Oil Release from Strategic Reserves

A display shows fuel prices at a petrol station in Munich, Germany, 10 March 2026. Fuel prices have risen since the start of US and Israeli military strikes on Iran and retaliatory attacks by Iran. (EPA)
A display shows fuel prices at a petrol station in Munich, Germany, 10 March 2026. Fuel prices have risen since the start of US and Israeli military strikes on Iran and retaliatory attacks by Iran. (EPA)

The International Energy Agency has proposed the largest release of oil reserves in its history to restrain soaring crude prices amid the US-Israel war with Iran, the Wall Street Journal reported, citing officials familiar with the matter.

The release would exceed the 182 million barrels of oil that IEA member nations put on the market in two releases in 2022 when Russia launched its full-scale invasion of Ukraine, the newspaper said.

The IEA called an extraordinary meeting of members on Tuesday, with nations expected to decide ‌on the proposal ‌the following day, the paper said.

The plan ‌would ⁠be adopted if ⁠there were no objections, it said, but protests by even one country could delay the effort.

G7 energy ministers stopped short of agreeing on a release of strategic oil reserves but in a statement on Wednesday said they supported the idea in principle.

French President Emmanuel Macron is due to chair a meeting of G7 leaders ⁠later on Wednesday.

"In principle, we support the implementation ‌of proactive measures to address the ‌situation, including the use of strategic reserves," the G7 energy ministers said. "G7 ‌members will carefully consider the recommendations."

One G7 source told Reuters ‌that although no country currently faced a physical shortage of crude, prices were rising sharply, and leaving the situation unattended was not an option.

However, any actual release cannot start immediately because decisions on aspects such as ‌total volume, country allocations, and timing require further discussion, the source said.

"The IEA secretariat is expected ⁠to propose ⁠scenarios, based on expected market impact, and outreach may extend to non-IEA members like China and India," the source said.

The IEA and the White House did not immediately respond to Reuters' requests for comment.

IEA member South Korea is participating in the discussion "and reviewing its position," a spokesperson for the country's industry ministry said on Wednesday.

Oil prices see-sawed on Wednesday as markets doubted whether the IEA's reported plan for a record release of oil reserves could offset potential supply shocks from the conflict in the Middle East.