The Kingdom of Saudi Arabia has approved an updated investment law for the Kingdom, which aims to continue driving investment growth into the country. The new regulations will form one unified framework, providing investors greater transparency, flexibility and confidence.
The new law simplifies the regulatory landscape by replacing the previous international investor licensing with a streamlined registration process. Furthermore, dedicated service centers will expedite government transactions and streamline investment procedures, enhancing overall governance, the Saudi Press Agency has reported.
Saudi Arabia’s foreign direct investment (FDI) stock increased by 61% from 2017 to 2023, reaching almost $215 billion in 2023, according to Saudi authorities. The Kingdom’s FDI inflows have surged by 158% in the last six years, jumping from $7.5 billion in 2017 to $19.3 billion in 2023.
The growth has been attributed to the implementation of a series of reforms, which have helped drive rapid investment growth, with gross fixed capital formation increasing, by 74% from 2017 to nearly $300 billion in 2023.
Khalid Al Falih, Saudi Minister of Investment, highlighted the introduction of the Civil Transactions Law, Private Sector Participation Law, Companies Law, Bankruptcy Law and Special Economic Zones as examples of the Kingdom’s pro-investment measures introduced by Saudi Arabia.
The minister added, “The law reaffirms Saudi Arabia’s commitment to creating a welcoming and secure environment for investors, driving economic growth, and enhancing the Kingdom’s position as a premier global investment destination.”
The policy direction outlined in Vision 2030 allows investors to invest with certainty and to grow with confidence at a time when many other markets are experiencing considerable volatility.
The executive regulations will come into effect beginning in 2025.
