Minister of Investment: The Investment Law confirms the Kingdom’s commitment to providing an attractive, supportive and safe environment for local and foreign investors

Eng. Khalid bin Abdulaziz Al-Falih, Minister of Investment, said that the issuance of the Investment Law is an extension of many development measures taken by the Kingdom, and confirms its commitment to providing an attractive, supportive and safe environment for local and foreign investors.

The Council of Ministers approved the Investment Law, which is one of the pillars of the National Investment Strategy, and this comes within the framework of the “Kingdom 2030” vision, and the pivotal role of investment in achieving comprehensive development goals and diversifying the resources of the national economy.

On this occasion, the Minister of Investment expressed his thanks and gratitude to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, for the guidance, support and empowerment that the investment system in the Kingdom receives, which always motivates it to develop and improve the investment environment and support investors in the Kingdom.

Al-Falih explained that the Kingdom’s orientation towards enhancing the attractiveness and competitiveness of the investment environment, especially in the regulatory and legislative aspects, stems from the contents of the economic principles guaranteed by the Basic Law of Governance, and takes into account the established investment principles and policies, which include the best global practices in this regard; This necessitated reviewing the foreign investment system, which was issued about 25 years ago, to formulate an integrated investment system that concerns both Saudi and foreign investors. The Minister of Investment pointed out that since the launch of its Vision 2030, the Kingdom has issued a number of systems, as part of a series of regulatory and legislative reforms related to its investment environment, and works in parallel with the investment system, including the civil transactions, privatization, companies, bankruptcy systems, and the initiative to establish special economic zones. He explained that the past few years have witnessed the implementation of more than 800 economic reforms; To enhance the Kingdom’s global competitiveness, the National Competitiveness Center, in collaboration with relevant government agencies, played a leading role in implementing it. All of this and other systems and reforms contributed to increasing the total fixed capital formation by 74% compared to 2017, to reach nearly $300 billion in 2023. The balance of foreign direct investment increased by 61% between 2017 and 2023, to reach about $215 billion. Foreign direct investment flows increased by 158% in 2023 compared to 2017, to reach 19.3 billion riyals. These initiatives and developments, in addition to incentives, facilities and enablers, have motivated investors to invest in a positive, supportive and stable investment environment. The Minister of Investment concluded his statement by stressing that the updates made to the system will enhance its contribution to stimulating economic growth and strengthening the Kingdom’s position as a distinguished global investment destination, explaining that the system and its executive regulations will enter into force in early 2025, and that those interested can obtain more information about the investment system through the link: investsaudi.sa/ar/resources/updatedInvestmentLaw

It is worth noting that the preparation of the investment system was carried out through joint efforts and cooperation between the Ministry of Investment and many relevant government agencies, in extensive consultation with a number of international organizations, and by surveying the opinions of investors to ensure its compatibility with international best practices.

This system represents a unified framework for the rights and duties of investors, thus reinforcing the established foundations related to it in the Kingdom, including the rule of law, fair treatment, property rights, freedom to manage investments, protection of intellectual property, and smooth transfer of funds.

The system also aims to facilitate regulatory procedures with transparency and clarity in a flexible, fair and competitive environment, in which the principle of equal opportunities and fair treatment between local and foreign investors is achieved. The system also encourages the use of alternative means of settling disputes.