Saudi Arabia's new Investment Law: A strategic initiative to attract global investors

published on 20 August 2024 | reading time approx. 2 minutes

Saudi Arabia's new investment law, effective in early 2025, simplifies the investment process and strengthens protections for both local and foreign investors as part of the Kingdom's Vision 2030 strategy. These reforms aim to attract more foreign direct investment and support the country's economic diversification efforts.

On 11 August 2024, Saudi Arabia introduced a new investment law under Royal Decree No. M/19, which will take effect 180 days after its publication, in early 2025. This law is a crucial element of the Kingdom’s Vision 2030 strategy, aimed at reducing economic reliance on oil and positioning Saudi Arabia as a leading global investment destination by aligning with international best practices.

The revised investment law incorporates several measures to streamline the investment process and enhance investor confidence. Key changes include the replacement of traditional foreign investor licenses with a simplified registration process and the establishment of new service centers. These centers are designed to facilitate government transactions, offering investors a more efficient and centralized way to access the services necessary to establish and operate businesses in Saudi Arabia.

Furthermore, the law prioritizes the protection of investor rights, ensuring equitable treatment for both local and foreign investors under the same regulations and protections. It also secures the ability of investors to manage their investments and transfer funds without unnecessary restrictions.

By effectively implementing these measures, Saudi Arabia aims to increase the foreign direct investment and support the transfer of critical knowledge and technologies essential for the country’s long-term development.