Starting Thursday, companies operating in Saudi Arabia entered a new phase after the Kingdom enforcing a new corporate law within its framework of completing the modernization and reform of commercial and investment legislation and systems.
The new legislation regulates investment and trade in the Kingdom and is based on clear and transparent foundations, specialists confirmed to Asharq Al-Awsat that.
Saudi authorities’ orientation towards developing and promoting the private sector, as well as attracting foreign investments, has driven the country’s creation of a fertile business environment, the specialists explained.
The new corporate law eliminates the phenomenon of commercial cover-up from local markets and is characterized by flexibility that supports family, small and medium-sized companies, as well as entrepreneurs.
As one of the achievements of Vision 2030, the new corporate law will act as a catalyst for the commercial system and its development.
It will fulfill the aspirations of family businesses and entrepreneurs, affirmed Commerce Minister Majid Al Qasabi.
According to statements from the Ministry of Commerce and the Capital Market Authority (CMA), the new law will assist businesses in expanding, overcoming obstacles, and staying updated with the various economic advances the Kingdom encounters.
As part of their initiatives to complete the modernization and reform of the Kingdom's commercial and investment laws, they also emphasized the role of the law in regulating provisions linked to companies in all their forms within a single legislative document.
The continuation of their cooperative efforts to establish unity and harmony in its execution, in a way that contributes to achieving its aims, the Ministry of Commerce and CMA had previously detailed the procedure for carrying out the new law's implementation for organizations.
In addition to its successful contributions to the sustainability of economic entities and enticing local investments, the corporate law is expected to contribute to strengthening the regulatory environment for businesses, facilitating procedures and regulatory requirements to stimulate the business environment and support investment, achieving balance among stakeholders, providing an effective and fair framework for corporate governance, and dedicating institutional work.