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.
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.
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.
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.