Updated Investment Law Profile 1446H – 2024G Contents Introduction ▶ 4 Statutory Instrument of the Law ▶ 5 ▶ 6 Investment Principles and Policies in the Kingdom ▶ 7 Law Objectives Scope of the law ▶ 8 Key elements of the law ▶ 9 Methodology for preparing the law and the international ▶ 10 experiences and practices that have been benefited from The expected financial, economic, functional, social and health ▶ 27 impacts of the implementation of the law Detailed laws and provisions and the corresponding provisions that ▶ 30 will be cancelled or amended as a result of the issuance of the law International agreements directly related to the law ▶ 32 Explanation of the articles of the law ▶ 35 Views on the Updated Investment law. ▶ 43
First:
Introduction : Investment is of fundamental importance global position and enable them to deliver in the roadmap drawn up by the Kingdom their products and services to regional and through the Kingdom›s Vision 2030, where global markets, thereby contributing to the Kingdom aims in the second pillar of increase non-oil exports to achieve one of its vision to become a global investment the targets of the Kingdom’s Vision 2030 force through stimulating the economy ( which is for non-oil exports to account and diversifying total revenues, improving for 50% of total non-oil GDP, as well as the investment and business environment, developing investment opportunities and and upgrading the Kingdom’s rankings supporting medium and long-term projects and classification in key global indicators that contribute to creating job opportunities to create a more resilient, diverse and to support reducing unemployment rates to sustainable economy. less than 7% by 2030 ). Thus, the National Investment Strategy To achieve this the National Investment issued by Council of Ministers Resolution Strategy has studied all the investment No. (134) and dated 28/2/1443 AH, aimed obstacles and challenges facing the public at enhancing the competitiveness of the and private sectors, identified and analyzed investment environment in the Kingdom by them, and developed several qualitative benefiting from the investment capabilities solutions and executive initiatives, including of the Kingdom, its geographical and the initiative to prepare a comprehensive strategic location that connects three draft investment law - which replaces the continents, and providing facilities for Foreign Investment law issued by Royal investors and easing regulatory procedures Decree No. (M/1) and dated 5/1/1421 AH - in related to the entry and establishment line with the Kingdom›s Vision 2030, and the of investments, and adopting creating a targets of the National Investment Strategy package of basic and special investment and best international practices, taking incentives for qualitative local and foreign into account the established principles investment projects according to specific and investment policies of the Kingdom and fair eligibility criteria, in addition to approved under Directive No. (16917) and supporting the investments and business dated 27/3/1440 AH. of national companies to enhance their
Second: Statutory Instrument of the Law The Ministry of Investment shall assume the competences related to the regulation of investment (local and foreign), including the submission of draft investment laws and regulations, as well as submission of proposal to amend existing laws and regulations, based on: The regulation of the Ministry of Investment issued by the Council of Ministers Resolution No. (594) dated 131442/10/ H, which states in its article (2): "The Ministry is the competent authority and the main reference in the Kingdom regarding the regulation, development and encouragement of investment (local and foreign), the promotion of its components, and the protection of investors, and it may, without prejudice to the competencies and responsibilities of other bodies, do all that is necessary in order to achieve its objectives," and what is stated in paragraph (3) of Article (2): "Proposing draft laws related to investment, reviewing existing laws, proposing amendments, and submitting them to complete the necessary legal procedures." The royal decree contained in the Royal Court's telegram No. (16917) dated 271440/3/H, stipulating that the Ministry of Investment shall review the statutory provisions related to investment in line with the Kingdom's Vision (2030) and international best practices, in a manner that encourages local and foreign investment to increase domestic product and achieve economic diversification. The Ministry of Investment shall also consider the preparation of an integrated investment law that takes into account the stable investment principles and policies referred to in the content of the royal decree. The National Investment Strategy issued by the Council of Ministers Resolution No. (134) dated 281443/2/ H, which included the initiative of preparing an integrated investment law in line with the Kingdom's Vision (2030) and the objectives of the National Investment Strategy and international best practices to replace the foreign investment law issued by Royal Decree No. (M/1) dated 51421/1/H.
Third: The Updated Investment law principles and characteristics compliant with the principles and policies of investment in the Kingdom, international standards, and benchmark studies: Transparency and clarity: Draft a unified law that combines the rights and duties of domestic 01 and foreign investors in line with the international practices. Easing regulatory restrictions: replacing foreign investor licensing requirement with a simplified registration process. Promoting equal treatment between the domestic and foreign investors under similar circumstances: 03 Reevaluate the restrictions of economic activities to treat domestic and foreign investors equally without prejudice to public order. Grant of Investment Incentives: Attracting domestic and foreign investments by way of granting incentives according to specific objective and pre-announced eligibility and evaluation standards. Promoting investors’ rights: Reemphasize investor basic rights, such as protection from expropriation without fair compensation, fair and equitable treatment, protection of intellectual property and confidential commercial information, freedom to manage his investment and make legal disposal thereof, freedom to transfer his funds inside and outside the Kingdom without delay, facilitating his administrative procedures, and providing statistical information and data. Fair competition: Enhance the principle of fair competition principle by way of ensuring the public sector non-competition to the private sector. Means of effective dispute resolution: The right to seek arbitration, mediation and reconciliation in addition to the right to seek recourse at competent courts. Streamline procedures and enhance investment governance: Comprehensive Service Center provides 08 the necessary facilities to streamline government transactions related procedures, including such help and assistance necessary to streamline flow of investments.
Fourth: Law Objectives The law aims to improve the investment environment in the Kingdom, enhance its competitiveness, and develop the foreign investment law to achieve the objectives of the National Investment Strategy aimed at achieving the aspirations of the Kingdom's Vision (2030), and to keep up with developments and changes in international economic and investment agreements concluded with the Kingdom and the relevant regulations and international best practices, by achieving the following: Developing a regulatory framework that Ensuring equal treatment between local balances investors' rights and obligations and foreign investors. in accordance with international best practices. Providing investment incentives with full Increasing investors' confidence in investing transparency by granting them according in the Kingdom. to specific and fair objective eligibility criteria. Ensuring the full protection of all Promoting the use of alternative means investments as required by the laws in the of dispute resolution, including recourse Kingdom and the international agreements to arbitration, with a view to reducing the to which it is a party. cost and duration of the dispute. Ensuring the protection of national security interests by developing a mechanism to Achieving alignment between the law monitor and restrict foreign investments in and related laws. certain sectors that are considered to be of a sensitive and strategic nature for the Kingdom. Accordingly, the achievement of these objectives described above requires the preparation of a comprehensive and objective law consistent with the legislative framework of the Investment Authority and the relevant laws locally and internationally. Such law shall be in line with modern international trends and practices and the movement of emerging markets at the regional and international levels regarding the treatment of investments.
Fifth: Scope of the law The law and its provisions aim to regulate all investments in the Kingdom owned by local and foreign investors, - whether natural or legal persons - and investments owned by government companies, with the exception of investments in special economic activities and zones regulated by special laws and regulations, such as special economic zones, which are subject to the provisions of its law, provided that the investor shall generally enjoy, as a minimum, the rights stipulated in this law.
Sixth: Key Elements of the Law The law included a number of basic principles and substantive and procedural provisions governing and regulating investments, in the form of key elements that included the following: general provisions, freedom of investment, rights and obligations of the investor, investment incentives, registration, excluded activities, protection of national security, methods of dispute settlement, sanctions and grievance methods, and more recently final provisions distributed over sixteen articles as follows: Article (1) defined the terminology and expressions obtain approval to invest in the activities mentioned mentioned in the law, to clarify their meanings; for in the "List of Excluded Activities” and granting the the purpose of accuracy and clarity and to avoid Ministry the right to prevent any foreign investment confusion in their understanding or interpretation, to protect national security. and this includes the basic concepts related to Article (10) addressed the right of the investor to capital. Article (1) also includes the definition of local recourse to the competent court, arbitration or and foreign investors. As for Article (2), it included a other alternative means of dispute settlement. statement of the purpose of the law. Article (3) dealt Articles (11 - 12) set out the penalties imposed on with the freedom of investment, as it clarified that the investor upon violating the provisions of the the investor has the right to invest in all sectors and law and do not rectify the violation. In determining activities available for investment. Article (4) also such penalties, the severity of the violation, its dealt with the guarantees and rights guaranteed by repetition, and the size of the establishment shall be the law to the investor, the most prominent of which taken into account, in addition to filing a grievance are ensuring the freedom to manage his investment, against the resolutions issued by the Ministry before protecting intellectual property and confidential the competent court and according to a specified commercial information, in addition to ensuring that period of time. Articles (thirteen - fourteen) clarified investments are not confiscated in whole or in part that the Law does not conflict with any of the except by a final judicial ruling in accordance with the international agreements and obligations to which public interest and in return for fair compensation. the Kingdom is a party, and in the event of a conflict, Article (5) included that the investor must abide by the provisions of the Agreement shall prevail over all regulations in the Kingdom. Article (6) highlighted the provisions of the Law. Also, the provisions of the the investment incentives granted to the investor with law do not prejudice the special laws that apply to the aim of encouraging and developing investment, special economic activities or economic zones. The and the provisions for granting such incentives so law concluded its provisions with articles (fifteen – that they must be in accordance with specific and sixteen), which contain procedural provisions related fair eligibility criteria. Each of the Articles (79-8-) to the enforcement and application of the law, and included provisions related to the national register that it cancels the Foreign Investment Law in addition of investors, the obligation to register the foreign to issuing the executive regulations of the law. investor, the obligation for the foreign investor to
Seventh: Methodology for Preparing the Law and the International Experiences and Practices that have been benefited from 01 Assessment of the current situation Based on the Ministry's goal to develop Study of international practices and an integrated investment law that's in experiences line with best international practices and standards, the Ministry has Drafting policy and recommendations adopted an objective methodology in document preparing the law represented in the following five steps: Drafting the law workshops with the relevant authorities to discuss the investment draft law
01. Assessment of the Current Situation: The Ministry has reviewed the provisions of the foreign investment law, the provisions contained in other relevant laws and regulations, and listened to the views and proposals submitted by international organizations.
02. Study of International Practices: The Ministry studied international and regional standard practices, such as: (Indonesia, Singapore, Germany, United Arab Emirates, Turkey, United States of America) with the aim of identifying the methodologies and practices followed in the countries benchmarked, addressing the challenges faced, and developing concepts to enhance the regulatory environment for investment.
03. Drafting the Policy and Recommendations Document: The Ministry worked on analyzing the practices followed in the standard countries under study, comparing them with the practices followed in the Kingdom, and reaching a policy paper that included several recommendations, in the light of which the law was prepared.
04. Drafting the Law: In drafting the articles of the law, the Ministry has benefited from the results of standard international and regional studies and practices, as well as the policy paper and its recommendations.
05.Workshops with relevant authorities to discuss and review the law: The Ministry reviewed and studied the feedback received - through «Istitlaa» platform - or directly from relevant government agencies (such as: the Saudi Central Bank, the General Authority for Competition, and the Saudi Authority for Intellectual Property), the private sector, local and foreign investors, and from relevant consultancy offices. In addition, the Ministry held meetings and workshops with a number of government agencies, the private sector, local and foreign investors, Saudi universities, international organizations, and other relevant bodies to discuss the law, listen to their feedback and views on it, and update the law in light of those feedback and views. The following tables summarize the most prominent conclusions drawn from the benchmark study: Comparison Countries Indonesia Singapore Germany United Arab Turkey United States Emirates This table shows a summary of the investment challenges, which were identified through the study and review of the relevant laws in the comparative countries that were relied upon when preparing the law Were these challenges Comparative countries that addressed Challenges addressed in the law? these challenges in their investment laws Organizational stability and Yes transparency Government procedures Yes Intellectual property Yes Yes Commercial/ investment disputes Yes Efficiency of government services Yes Fair competition environment Compensations Yes The table below shows how countries deal with topics related to investment › First : Investor Screening and Negative List Country : Turkey Under the Foreign Investment Law, the investor screening process has been abolished and there is no negative list for foreign investment. Restrictions on foreign investors in some sectors are mentioned in the regulation of the same sectors, for example: » Radio and Television Broadcasting Institutions and Services Law: Total foreign ownership cannot exceed (50%) of the paid-up capital in an institution that provides media services. » Maritime Transport Law: Foreign ownership in the maritime sector is limited to (49%) only. » Foreign investors must also obtain prior approval from the relevant regulatory authority to invest in certain sectors, such as: » Insurance sector, that requires prior approval from the Ministry of Treasury and Finance. » Banking sector, that requires prior approval from the Banking Regulation and Supervision Authority. » Telecommunications sector, that requires prior approval from the Information and Communications Technology Authority. » However, some sectors, such as the electric power transmission sector and the railway sector, are closed for foreign investment, because the government is the only operator in these sectors. The government may also be a contributor in some sectors open to private investors, and these sectors generally include the petroleum sector, the mining sector, and the banking sector. Country : Singapore » Singapore has a limited investor screening process where the Singapore government examines investment offers in order to determine eligibility of investor for incentives. Country : United Arab Emirates Foreign investors must obtain approval to establish a business in the UAE and the Foreign Investment Law includes a negative list containing (13) activities closed for foreign investments. However, exceptions can be granted by the Council of Ministers to invest in those activities. The Foreign Investment Law also includes a positive list of activities allowed for foreign investments after obtaining a foreign investment license from the competent authority. The foreign investor can be allowed to invest in all activities that are not on the negative or positive list upon a discretionary resolution of the Council of Ministers. Article (19) of the Foreign Investment Law also stipulates the reasons for rejecting foreign investment in whole or in part, which are as follows: When an investment poses a When an investment adversely When an investment affects threat to national security. affects a strategic sector in the public health or morals and country. community values. When investment affects the When investment affects defense sector. a country's foreign policy. Country : Indonesia » There is no general investment screening mechanism applicable to foreign investors in Indonesia, but foreign investment is restricted by the Negative Investment List (Daftar Negatif Investasi or DNI), which is regularly listed and reviewed by the Investment Coordinating Board of Indonesia (BKPM) and the Coordinating Ministry for Economic Affairs (CMEA). » Many different sectors in Indonesia are completely or partially closed for foreign investment. According to Article (4) of (DNI 2016), foreign investment is open in (20) different business sectors and it’s restricted in some sectors so that it is open only to small, micro and medium-sized businesses or in partnership with them. Businesses open to foreign investment with conditions cover (145) sectors, and there are (123) open sectors under "ownership restrictions" where foreign ownership is limited. » On 16 November 2018, the Government of Indonesia announced that it would liberalize foreign investment in some sectors by updating the negative list to be more flexible in order to attract more foreign investment. Country : Germany » Germany does not apply any general screening of foreign investors except that the Foreign Trade and Payments Act and its regulations allow for the screening of foreign investors and allow for exceptional restrictions on foreign investments under specific circumstances. The Foreign Trade and Payments Law and its regulations also affirm that foreign investments are free to enter the country and that any restrictions are exceptional. According to the Foreign Trade and Payments Law, restrictions on foreign investments are for the following reasons: » To remove the threat to basic needs in Germany or in parts of Germany and protect human health and life. » To implement the resolutions of the Council of the European Union on economic sanctions in the field of Common Foreign and Security Policy. » To implement of the obligations of EU Member States set out in the legal acts applied in the European Union for the implementation of economic sanctions in the area of Common Foreign and Security Policy. » To implement UN Security Council resolutions and to implement of international agreements approved by legislative bodies in the form of a federal law.
The negative list is as follows: Manufacture or development of weapons of war or other military equipment. Manufacture of products with IT security functions to address the security interests of the state, and this is especially true if the security interests of the State of Germany or related to military security. Manufacturing or developing products that if there is a real serious risk affecting the fundamental interest of society. Country : United States of America » There is a Federal Interagency Committee under the name of Committee on Foreign Investment in the United States (CIFUS) to review transactions and deals involving foreign investment in order to determine the impact of such transactions on the national security of the United States of America. FIRRMA was also signed to update the Foreign Investment Risk Review into law on 13 August 2018, which works to strengthen and update the terms of reference of the Committee on Foreign Investment (CFIUS) to address national security concerns more effectively, by expanding the powers of the President and the Committee on Foreign Investment (CFIUS) to review and take preventive measures to address any national security concerns arising from non-controlling foreign investments involving foreign persons. » Most sectors do not have any restrictions on foreign investment, with the exception of some sectors, including defense, civil aviation, shipping, telecommunications, energy, natural resources, banking, advanced electronics and biotechnology. » There is no consolidated negative list for foreign investments in the United States, but US includes a negative list in its bilateral investment agreements. Also, there are some regulations at the federal and state levels that restrict foreign investment in some strategic sectors such as nuclear power, customs brokerage, and domestic air services. › Second : Restrictions on Ownership Country : Turkey » In principle, there are no restrictions on foreign investors' ownership in most sectors, with the exception of some limited sectors such as broadcasting and aviation activities. Country : Singapore » Singapore sets restrictions on foreign ownership in the transport and media sectors for reasons related to national security, which apply to the sectors of port operation, international passenger transport, and television broadcasting. Foreign ownership may not exceed (49%) in those sectors, and foreign ownership may not exceed (12%) in the newspaper publishing sector. Country : Germany » Germany applies EU-wide restrictions on foreign ownership in the field of international passenger air transport, in which the proportion of foreign ownership must not exceed (49%). Country : United States of America » The United States of America allows (100%) foreign ownership in most sectors in general, with the exception of some sectors that are considered sensitive such as radio and television broadcasting, air and maritime transport, and fishing. There is also no prohibition on foreign ownership of real estate, but some US laws, such as the Foreign Assets Control Rules, impose restrictions and requirements that apply to foreign investors in some cases, such as preventing dealing with some countries so that it has an impact on national security. › Third : Investment Incentives Country : Turkey The foreign investment law did not provide for any investment incentives. However, Turkey offers many incentives to investors in some sectors; if the investor wants to benefit from such incentives, he must invest in as follows: » (1 billion TL) for refined petroleum products. » (200 million TL) for chemical products, port and harbor services, airports, airport ground services and investments of Original Equipment Manufacturer (OEM). » (50 million TL) for investments in the industries of supplying cars, railway locomotives or railway wagons, transit pipeline transport services, electronics, high-precision and optical medical equipment, pharmaceuticals, aircraft, aerospace vehicles or parts thereof, machinery, and investments of the final production of metals. Country : Singapore Singapore has a Global Investor Program where individual foreign investors are required to make a minimum investment (Singapore $2.5 million) in an approved sector such as: aerospace engineering, education, alternative energy, electronics, healthcare, media and entertainment, nanotechnology, natural resources, and many others) and they are required to submit a 5-year investment plan. The Global Investor Visa is valid for 3 to 5 years; renewable. The permit is issued by the Economic Development Board and the Ministry of Manpower. Country : United Arab Emirates The UAE issues an investor visa to individual foreign investors who have to deposit an amount (10,000 to 20,000 dirhams) and demonstrate that they have sufficient funds to make significant investments in an Emirati company or to establish a business in the UAE. Country : Germany » Germany provides incentives, which are to allow the investor and his family members to join the German residency and citizenship program, in order to encourage foreign investors to either start new businesses or invest in existing businesses, and to employ German citizens if they meet the following requirements: » The investor is able to invest 1 million euros in a new business or to control an existing company. » To create (10) jobs for German citizens in new businesses or to employ (10) German citizens in existing businesses. Country : Indonesia » Depending on the type of investment license that investors wish to obtain, whether temporary or permanent, the Investment Coordinating Board sets certain conditions that must be met. The temporary license is only valid for one year and can be extended for another year. However, if the foreign investor is interested in obtaining a permanent business license, the requirements are: » The minimum investment by the foreign investor shall be more than (10 billion rupees) excluding investment in land and buildings. » The paid-up capital of PT PMA shall be more than (2.5 billion rupees). » The minimum value per share is (10 million rupees). › Fourth : National treatment Country : Turkey » Under Article (3) of the Foreign Investment Law, foreign investors in Turkey are treated nationally. Country : Singapore National treatment applies in the stages of entry into the labor market and pre-construction in the sectors of telecommunications, broadcasting, local media, financial services, legal and other professional services, and real estate ownership. Country : United Arab Emirates Paragraph (1) of Article (8) of the Foreign Investment Law referred to the principle of national treatment to the extent permitted by the legislation in force and international agreements to which the UAE is a party. Country : Germany After incorporation, foreign investors enjoy national treatment under Article (3) of the German Constitution and all German Bilateral Investment Agreements emphasize the principle of non-discrimination between German and foreign investors. Country :Indonesia Article (6) of the Investment Law stipulates that after incorporation, all investors from any country shall be granted the same treatment in Indonesia except that the law excludes the same treatment for investors of a country that has obtained concessions under an agreement with Indonesia. Country : United States of America The government of the United States of America grants national treatment to foreign investors. ›
Fifth: Transfer funds abroad Country : Turkey Article (3) of the Foreign Investment Law stipulated the freedom to transfer funds abroad, which includes: net profits, dividends, proceeds from the sale or liquidation of all or part of the investment, compensation payments, amounts arising from licensing, management, similar agreements, repayment, and interest payments arising from foreign loans through banks or private financial institutions. Country : Singapore the Exchange Control Act was abolished on 1 June 1978, so Singapore has no exchange control restrictions, or restrictions on repatriation of profits or capital. Country : United Arab Emirates The Foreign Investment Law provides for the right of investors to transfer funds abroad in line with all applicable legislation. The funds covered by this right include the net profits and proceeds from the liquidation and sale of the investment. Country : Germany The Central Bank Law provides for the right to freely transfer funds abroad. Country :Indonesia Article (8) of the Investment Law grants the right to transfer capital and profits from Indonesia in accordance with the obligations stipulated in the law. The law also provides an illustrative list of payments and dividends that investors have the right to transfer in foreign currencies. Country :United States of America Foreign investors in USA may transfer all their funds and profits abroad, but these funds may be subject to local laws and regulations such as tax regulations. › Sixth : Protection against expropriation Country : Turkey Article (3) of the Foreign Investment Law indicated that foreign investments in Turkey may not be expropriated or nationalized except for public benefit and under compensation in accordance with due legal process. Country : Singapore Domestic law does not explicitly protect against expropriation, but most international investment agreements provide protection against expropriation and, if any, with compensation at fair market value. Singapore has also not exercised divestment owned by foreign investors and has no laws that compel foreign investors to transfer ownership to the government. Country : United Arab Emirates The expropriation of any foreign investment is permitted only for public benefit and in return for fair compensation, but it does not provide adequate guarantees to investors. Country : Germany Protection against expropriation is stipulated in the German Constitution in Article (3) and
(14). Any expropriation must be based on a law regulating compensation. Expropriation by the federal government is subject to specific laws such as the Building Code or the Federal Roads Act. In addition, each of the 16 German states has its own expropriation law but all require that expropriation shall be for public interest and only in cases where other alternative solutions are unenforceable. The laws of the Country guarantee effective and prompt compensation at fair market value. Country :Indonesia Article (7) of the Investment Law expressly guarantees protection against direct expropriation and the law also ensures that the expropriation will be in accordance with the law and that the government has to pay the stipulated compensation based on the market price. In addition, the law provides that in the event that no agreement is reached between the parties on compensation, it shall be settled by arbitration. The law does not guarantee protection from indirect expropriation, but all bilateral investment agreements in Indonesia do. Country : United States of America The United States Constitution provides protection for all foreign and domestic investors and provides that compensation shall be at fair price in the event of expropriation for the public interest. › Seventh : Settlement of Disputes Country : Turkey Article (3) of the Foreign Investments Law includes the dispute settlement mechanism but does not mention international dispute settlement procedures. Country : Singapore Singapore relies on regional and international arbitration. The Arbitration Act 2001 is based on the UNCITRAL Model Law and the ICSID Convention entered into force for Singapore in November 1968. Country : United Arab Emirates Article (12) of the Foreign Investment Law stipulates that disputes that may arise from investment may be settled by all alternative means. Country :Germany Domestic arbitration and international arbitration are both permitted in national legislation and bilateral investment agreements to which Germany is a party. Country :Indonesia Article (32) of the Investment Law stipulates the mechanisms for settling investment disputes in Indonesia, where international arbitration for the settlement of disputes between foreign investors and the government is available in accordance with agreements concluded between the parties to the dispute. Disputes between the domestic investor and the government may be settled through arbitration rules by agreement between the parties or through the court in accordance with the relevant laws and regulations. Country : United States of America Domestic arbitration and international arbitration are both permitted in domestic legislation. The table below shows a comparison between the investment law and investment laws in several countries People's Arab South Republic of United Arab Kingdom of Republic Turkey Korea China Emirates Saudi Arabia of Egypt Subject Direct Foreign Foreign oreign Direct Investment Law Foreign Direct Investment Law Investment 2022 Foreign Investment Law Investment 2003 Promotion Act Investment Law 2018 Law 2018 1998 Definition ✔ ✔ ✔ ✔ ✔ ✔ Purpose ✔ ✔ ✔ ✔ ✔ ✔ Investors' Rights and ✔ ✔ ✔ ✔ ✔ ✖ Obligations Investment ✔ ✔ ✔ ✔ ✖ ✖ incentives Recording direct ✔ ✔ ✔ ✖ ✔ ✔ investments Excluded and Restricted ✔ ✔ ✔ ✖ ✖ ✔ Activities Obtaining approval from the ✔ ✔ ✔ ✔ ✖ ✔ competent authority Settlement of ✔ ✔ ✔ ✔ ✔ ✖ Disputes Workshops with relevant authorities to discuss and review the law: The Ministry reviewed and studied the received views and feedback - through "Istitlaa" platform - or directly from relevant government agencies (such as: the Saudi Central Bank, the General Authority for Competition, and the Saudi Authority for Intellectual Property), the private sector, local and foreign investors, and from relevant consultancy offices. In addition, the Ministry held meetings and workshops with a number of government agencies, the private sector, local and foreign investors, Saudi universities, international organizations, and other relevant bodies to discuss the law, listen to their feedback and views on it, and update the law in light of those feedback and views. These bodies were as follows:
Government Entities: International Organizations
Saudi Universities: Eighth The expected financial, economic, functional and social impacts of the implementation of the law
Financial impacts: Increasing non-oil revenues and job opportunities as a result of the law's adoption of the most important investment principles and policies consistent with international best practices which will enhance the investment flow into the Kingdom, which is one of the most important elements of financing in the national economy of countries. Therefore, increasing the flow of these investments will contribute to improving the state's general budget deficit. According to the semi-annual financial and economic performance report of 2021 issued by Ministry of Finance, the increase in non-oil revenues and its development is one of the main factors contributing to improving and reducing the state's general budget deficit. The report confirmed that the reason for the decrease in the budget deficit from 143 billion during the first half of 2020 to about 12 billion during the first half of 2021 is due to several reasons, the most important of which is the improvement of non-oil revenues and the decrease in total expenditures.
Economic impacts : The law is an essential factor and an important movement towards openness to investment and make the business environment in the Kingdom more attractive to investors, which contributes to achieving economic diversification, increasing the effectiveness of partnership between the government sector and the private sector, and enabling the Kingdom to grow and compete with advanced economies. The adoption of the law, along with the existing government efforts of incentive initiatives and programs, will contribute to enhancing foreign investments in the Kingdom to reach 5.7% of GDP, in addition to increasing the contribution of the private sector to GDP to reach 65% and moving to one of the first (10) positions in the Global Competitiveness Index, by attracting local and foreign investors to invest in a modern investment environment governed by clear and flexible regulations, and compatible with the best global and regional practices and standards, which makes it an encouraging and attractive environment to attract quality investments, which in turn will contribute to achieving the objectives of the National Investment Strategy aimed at achieving the aspirations of the Kingdom's Vision (2030). The law will contribute, through its provisions and regulation, to the development of the regulatory and legislative environment, which is considered the most important factors influencing the decision of companies to invest abroad according to the study entitled "Global Investment Competitiveness 2019" issued by the World Bank Group, which conducted a survey of a group of multinational companies in (10) middle-income countries, as follows: (Brazil, China, India, Indonesia, Malaysia, Mexico, Nigeria, Thailand, Turkey, and Vietnam). The study included (15) factors influencing the company's decision to invest abroad. The most prominent of these factors was (the regulatory and legislative environment) as the most important factor for a company to take a decision if they will invest in the country or not. The law will contribute to the development of qualitative investment opportunities, maximize its utilization, and raise the Kingdom's competitiveness at the regional and international levels by attracting investments in a wide range of key sectors in the Kingdom, in addition to activating partnership with the private sector in many tracks under the umbrella of the Kingdom's Vision 2030 programs (such as: National Investment Strategy, Privatization Programs, and Shareek Program) by supporting and empowering the private sector to benefit from investment opportunities and privatizing some government assets and services, which in turn will enhance the reduction of the costs of these services, improve their quality and achieve gradually increasing returns during the coming period.
Functional impacts : The main functional impact of the law is to facilitate the current investment landscape and bring about a radical change in the investment environment of the Kingdom to make it more attractive and competitive by combining the basic elements of the investment framework in the Kingdom and providing them to investors, which will result in an increase in the flow of investments in various sectors and fields, which contributes to creating job opportunities for all members of society, thus increasing employment rates and reducing the level of unemployment, as well as improving the level of qualification and training of human capital through the transfer and localization of international expertise and knowledge, which usually transfer via foreign investments.
Social impacts: The adoption of the law will contribute to creating a competitive environment among investors of different backgrounds and sizes, which generates diversity in existing investments and experiences in the Kingdom and competition to provide services of better quality to beneficiaries at competitive prices. The law will also ensure equality between local and foreign investors and provide investment incentives to them in accordance with the laws and regulations in force and the international agreements to which the Kingdom is a party, which will reflect positively on the social situation in the Kingdom by promoting the principle of ensuring equal opportunities. In addition, the implementation of the law will contribute to the creation of a competitive work environment that stimulates and encourages innovation and continuously creates new opportunities for investment in different areas. As well as the application of the law will contribute to facilitating the registration procedures for investors by clarifying, simplifying and shortening the procedures in a way that seeks to achieve transparency and clarity in transactions.
Ninth: Detailed laws and provisions and the corresponding provisions that will be cancelled or amended as a result of the issuance of the law The investment law will cancel the Foreign Investment Law issued by Royal Decree No. (M/1) dated 51421/1/H, and its executive regulations issued by the decision of the Board of Directors of the General Authority for Investment -previously - No. (274/) dated121435/5/ H. The positive impact of the Law Subject Updated Investment law Foreign Investment Law on the investment regulatory environment Increasing openness to Investment Law, regulating the Foreign Investment Law, Law Name investment to support the provisions of the local and foreign Regulating the Provisions of the and Scope creation of investment investor Foreign Investor opportunities
• Cancellation of investment license
• Editing the practice of economic
• Requirement for a foreign investor activities and limiting the to obtain an investment license Increasing the ease of practicing exception to a list established Investment • Competence of the Council of business activities while taking by the Standing Ministerial Requirements Ministers to issue a list of types into account sensitive and Committee for the Examination of activity excluded from foreign strategic sectors of Foreign Investments according investment to objective criteria Local and Achieving equality according foreign Ensuring equal treatment between None to the principle of fair investor local investor and foreign investor competition treatment Enhancing the governance of Investment Reduce the cost of practicing granting investment incentives and None Incentives business facilities granted to the investor
• Investor protection governance by None establishing a clear and transparent complaints handling mechanism
• Aligning local and foreign investor Allocation of specific rights to rights with international investment the foreign investor principles and policies Investor • Freedom to use the investment Increased investor confidence Rights activity and freedom to transfer Possibility of transferring funds capital (without delay)
• Emphasizing on protection None of intellectual property and confidential business information
• Addressing provisions for direct and Addressing provisions for direct indirect expropriation
• Determining serious and non- serious violations in the executive regulations
• Taking into account the principle of Achieving the principle of Violations None graduation and setting standards gradual application of penalty for penalties (taking into account the frequency of the violation, the size of the facility and the severity of the penalty)
• The local and foreign investor may recourse to the competent court in the dispute with the government authority; unless the parties to the dispute agree otherwise Settlement of disputes amicably Enhancing investors' freedom Settlement of between the foreign investor to recourse to means of dispute Disputes
• Investors may agree to settle and the government settlement their disputes through alternative means of dispute settlement including arbitration, mediation and conciliation
Tenth: International Agreements Directly Related to the Law There is no conflict between the provisions of the Investment Law and the provisions of international agreements and the like to which the Kingdom is a party, which are set out in the table below: Agreements/ Protocols /Memorandums of No. Authentication Decision Understanding Agreement for the Promotion and Protection of Investment Royal Decree No. (M/42) dated 01 between the Government of the Kingdom of Saudi Arabia and 31423/11/H the Government of the Republic of South Korea Agreement for the Promotion and Protection of Investment Royal Decree No. (M/64) dated 02 between the Government of the Kingdom of Saudi Arabia and 181428/7/H the Government of the Republic of Singapore Agreement for the Promotion and Protection of Investment 03 between the Government of the Kingdom of Saudi Arabia and Royal Decree No. (M/18) dated 21429/4/H the Government of the Federal Republic of Switzerland Agreement for the Promotion and Protection of Investment 04 between the Government of the Kingdom of Saudi Arabia and Royal Decree No. (M/1) dated 211424/1/H the Government of the French Republic Agreements/ Protocols /Memorandums of No. Authentication Decision Understanding Agreement for the Promotion and Protection of Investment Royal Decree No. (M/24) dated 05 between the Government of the Kingdom of Saudi Arabia and 241422/5/H the Government of Malaysia Agreement for the Promotion and Protection of Investment 06 between the Government of the Kingdom of Saudi Arabia and Royal Decree No. (M/53) dated61441/5/H the Government of the Republic of Iraq Agreement on the Promotion and Protection of Investment Royal Decree No. (M/36) dated 07 between the Government of the Kingdom of Saudi Arabia and 241430/6/H the Government of the Republic of Ukraine Agreement on the Promotion and Protection of Investment Royal Decree No. (M/29) dated 08 between the Government of the Kingdom of Saudi Arabia and 121431/6/H the Government of the Republic of Belarus Agreement for the Promotion and Protection of Investment Royal Decree No. (M/20) dated 09 between the Government of the Kingdom of Saudi Arabia and 271430/3/H the Government of the Kingdom of Sweden Agreement for the Promotion and Protection of Investment Royal Decree No. (M/20) dated 10 between the Government of the Kingdom of Saudi Arabia and 231417/11/H the Government of the Republic of China Agreement for the Promotion and Protection of Investment 11 between the Government of the Kingdom of Saudi Arabia and Royal Decree No. (M/4) dated 211418/1/H the Government of the Federal Republic of Germany Agreement for the Promotion and Protection of Investment 12 between the Government of the Kingdom of Saudi Arabia and Royal Decree No. (M/8) dated 61423/3/H the Government of the Republic of Austria Agreement for the Promotion and Protection of Investment 13 between the Government of the Kingdom of Saudi Arabia and Royal Decree No. (M/44) dated 11427/7/H the Government of the Republic of the Philippines Agreement for the Promotion and Protection of Investment Royal Decree No. (M/15) dated 14 between the Government of the Kingdom of Saudi Arabia and 181417/10/H the Government of the Republic of Italy Agreement for the Promotion and Protection of Investment 15 between the Government of the Kingdom of Saudi Arabia and Royal Decree No. (M/68) dated 11428/8/H the Government of the Kingdom of Spain Agreement for the Promotion and Protection of Investment 16 between the Government of the Kingdom of Saudi Arabia and Royal Decree No. (M/3) dated 91432/1/H the Government of the Czech Republic Agreements/ Protocols /Memorandums of No. Authentication Decision Understanding Agreement on the Promotion and Protection of Investment 17 between the Government of the Kingdom of Saudi Arabia and Royal Decree No. (M/9) dated 61435/2/H the Government of the Republic of Uzbekistan Agreement for the Promotion and Protection of Investment Royal Decree No. (M/53) dated 18 between the Government of the Kingdom of Saudi Arabia and 171437/8/H the Government of Japan Agreement for the Promotion and Protection of Investment Royal Decree No. (M/28) dated 19 between the Government of the Kingdom of Saudi Arabia and 291425/5/H the Government of the Republic of Indonesia Agreement on the Promotion and Protection of Investment Royal Decree No. (M/19) dated 20 between the Government of the Kingdom of Saudi Arabia and 201427/3/H the Government of the Republic of Azerbaijan Agreement for the Promotion and Protection of Investment Royal Decree No. (M/18) dated 21 between the Government of the Kingdom of Saudi Arabia and 221423/4/H the Belgian-Luxembourgian Economic Union Agreement for the Promotion and Protection of Investment Royal Decree No. (M/69) dated 22 between the Government of the Kingdom of Saudi Arabia and 111439/7/H the Government of the Hashemite Kingdom of Jordan Framework Agreement for Economic Cooperation between the 23 Gulf Cooperation Council and the Government of the Republic Royal Decree No. (M/8) dated 291427/1/H of Turkey Economic Agreement between the States of the Arab Gulf Royal Decree No. (M/58) dated Cooperation Council 151424/8/H Agreement for the Promotion, Protection and Guarantee of Royal Decree No. (M/45) dated 25 Investments among the Member States of the Organization of 81404/11/H the Islamic Conference Unified Agreement for the Investment of Arab Capital in the 26 Royal Decree No. (M/48) dated 41435/7/H Arab States (Amended) Joined by Royal Decree No. (M/54) dated 27 WTO 211426/9/H
Eleventh: Explanation of the Articles of the Law elcitrA Article Text Explanation of Article tsriF Definitions In this Law, the following words and phrases shall have the meanings assigned thereto, unless the This article tackles the terms to be context requires otherwise: defined in the provisions of the Law Law: Investment Law. and clarifying their purpose, taking into Regulation: Implementing Regulation of the Law. account the best local and international practices in the application thereof. The Competent Authority: Any ministry or public definitions included clarifying what is agency with an independent legal personality. meant by "Investment" and capital and Ministry: Ministry of Investment. what it includes. The article also clarified Minister: Minister of Investment. the definition of the local and foreign investor and other terms. Investment: The use of capital to establish, expand, develop, finance, manage, or partially or fully own an investment project in the Kingdom for the purpose of economic gain.. tsriF Capital: Any asset which has a material value, whether cash, in-kind, or intangible, as specified in the Regulations, including the following in particular: A. Company shares and interests. B. Contractual rights. C. Fixed or movable assets. D. Intellectual property rights. E. Rights granted under any law, such. as licenses, permits, or the like. Capital shall not include loans, bonds, financing This article tackles the terms to be sukuk, and public and private debt instruments. defined in the provisions of the Law and clarifying their purpose, taking into Investor: A local or foreign investor. account the best local and international Local Investor: A natural or legal person of Saudi practices in the application thereof. The nationality who engages in investment. definitions included clarifying what is Foreign Investor: A natural or legal person who meant by "Investment" and capital and engages in investment, and who is not deemed a what it includes. The article also clarified local investor in accordance with the provisions of the definition of the local and foreign this Law. investor and other terms. Investment Incentives: The benefits, facilitations, or exemptions granted to an investor to encourage him to engage in investment, in accordance with relevant legal provisions. List of Excluded Activities: A list of activities the investment therein by foreign investors is prohibited or restricted, as provided for in Article 8 of this Law.. Recognized Currency: Any currency recognized by the Saudi Central Bank. dnoceS Purpose of the Law This Law aims to develop and enhance the competitiveness of the investment environment in the Kingdom, contribute to economic development, and create job opportunities by providing an attractive investment climate, in accordance with relevant laws; this shall include the following: This article clarifies the main objectives of the Law, which are to attract investments A. Facilitating the establishment of investments, and enhance the investment environment ownership of assets therein, and the exit and its competitiveness by adopting therefrom or liquidation thereof. several principles mentioned in the article, B. Guaranteeing and promoting the rights of including ensuring equal treatment investors. between local and foreign investors and C. Guaranteeing equal treatment for local and promoting their rights. foreign investors. D. Ensuring transparent, efficient, and fair procedures for investors and their investments. E. Promoting the principle of competitive neutrality and fairness and ensuring equal opportunities in investments. drihT
Freedom of Investment: This article shows that the investor has full freedom to invest in the various sectors Without prejudice to the provisions of Articles 8 and and economic activities available for 9 of this Law and the provisions of relevant laws, an investment in accordance with the relevant investor may engage in investment in any sector or laws, regulations and instructions. activity available for investment. htruoF Rights of Investors
1. Without prejudice to the provisions of relevant laws, an investor shall have the following rights : A. He shall be treated equally to other investors, and local and foreign investors shall be treated equally, under similar circumstances. B. He shall be treated fairly and justly. C. His investment may not be fully or partially confiscated except pursuant to a final judicial ruling, nor may such investment be directly or indirectly expropriated except for public This Article seeks to achieve one of the interest, in accordance with legal procedures, objectives of the Law stipulated in Article and in return for a fair compensation. 2 thereof, which is to determine the D. He shall have the right to transfer his funds rights of the local and foreign investor, within or outside the Kingdom without delay; by enumerating the rights enjoyed by this shall include, but shall not be limited to, transferring the proceeds of his investment the investor. Additionally, this Article and the profits gained therefrom as well affirms the right of the foreign investor as the proceeds of the sale or liquidation to be treated in a similar manner no less thereof through legal channels using any favorable than that granted to the local recognized currency, and disposing of such funds through any other lawful means. investor. The Article also clarifies the E. He shall have the right to manage his freedom of the investor to manage his investment, dispose of such investment own business. Furthermore, the Article in accordance with the law, and own any stipulates several guarantees granted to property necessary for the conduct of his the investor, which are compatible with business. F. Protection of his intellectual property and the principles and policies of investment trade secrets. in the Kingdom, such as ensuring G. Facilitation of administrative procedures and the protection of the property of all provision of necessary support and assistance investments. The Ministry also seeks to by the competent authority. provide information and statistics that in turn support the investor's business and
2. The competent authority shall, upon taking also seeks to address complaints that the any measures for public interest, including investor may submit so that the investor measures necessary to fulfill the Kingdom's enjoys complete comfort throughout the international obligations, maintain public order, period of his investment in the Kingdom. or protect national security, observe the rights stipulated in paragraph (1) of this Article.
3. The Ministry shall, as specified in the Regulations, provide the investor with any available information or statistical data as well as the necessary services to facilitate any procedures relating to his investment, and shall seek to resolve complaints filed thereby, in accordance with clear and htfiF Obligations of Investors This article set out the obligations generally without going into detail and The investor shall comply with all the laws and regulated under the laws and regulations legislations applicable in the Kingdom and with the Kingdom’s obligations under international that apply to all investors regardless of agreements to which it is a party. any consideration. htxiS In order to attract investments and to create a stimulating and enabling environment for investment in the Kingdom, the Law Investment Incentives specified this article to investment incentives that distinguish the Law from the foreign Without prejudice to relevant laws, the competent investment Law. The granting of these authority shall grant investment incentives to incentives, as stipulated in the provisions investors in accordance with objective and fair of the article, shall be in accordance with eligibility criteria. The Regulations shall specify the objective and fair eligibility criteria in order provisions necessary for the implementation of this to achieve equality and transparency in provision. dealing therewith taking into account the laws and regulations in force in the Kingdom and the international agreements to which the Kingdom is a party. Registration
1. The Ministry shall establish a national register This article specifies the mandatory cases for investors where all the information and data for registering investments with the related to their investments are entered. The Ministry in accordance with the controls Ministry shall manage and update said register and mechanisms that will be determined and maintain its confidentiality. by the executive regulation of the Law.
2. A foreign investor shall register with the Ministry The article also obligated the Ministry to prior to engaging in any investment, as specified establish a national register of investors in in the Regulations. This shall not apply to which all data and information of investors' investments in securities that are subject to the investments are recorded, managed, provisions of the Capital Market Law. updated and kept confidential. In Addition,
3. The competent authority shall provide the Ministry the article imposed an obligation on with any information or data required to establish other competent authorities to provide or update the register provided for in paragraph
(1) of this Article, in accordance with the manner all necessary to complete this register. specified in the Regulations. The Ministry may What distinguishes the Law from the communicate with the competent authority foreign investmetn Law is that it provides to satisfy any requirements for establishing or for a comprehensive service center, updating said register. which in turn emphasizes the importance
4. The Ministry may, through its comprehensive of the existence of this center and the service center, receive the investor’s applications tasks entrusted thereto that enhance the to obtain the legal approvals necessary for provision of services to the investor and engaging in an investment activity, including permanent innovative solutions to develop licenses or permits. The Ministry shall coordinate these services provided and enhance their with the competent authority in charge of issuing effectiveness. such approvals to ensure that the investor satisfies the necessary legal requirements. hthgiE List of Excluded Activities
1. The competent authority shall issue and update the list of excluded activities, and the This article specifies the competence of Ministry shall publish said list. the competent authority to determine
2. The foreign investor shall, prior to engaging the list of excluded activities. This article in any investment activity included in the list also requires that the foreign investor of excluded activities, apply to the Ministry shall apply for approval in the event that for approval. The Ministry shall refer the he wishes to invest in any of the excluded application to the competent authority. activities. This article also emphasizes the
3. The foreign investor shall, prior to making any role of the Ministry in publishing that list change in the ownership of his investment in with the aim of informing and notifying any of the restricted activities included in the the foreign investor in order to achieve the list of excluded activities, apply to the Ministry principle of transparency and clarity. for approval. The Ministry shall refer the application to the competent authority. htniN This article affirmed the right granted to the Ministry of Investment as the foreign
Protection of National Security: investment window of the Kingdom The Ministry may suspend any foreign investment to prevent any investment to maintain for the purpose of protecting national security, national security, provided that the ban provided that the suspension decision is based on decision is based on an objective basis, objective grounds, is consistent with the Kingdom's which is consistent with the principles of obligations under international agreements to international law regarding the rights of which it is a party, and is in accordance with the countries to prevent foreign investments procedures specified in the Regulations. whose entry may entail a risk to the national security. htneT Use of Alternative Dispute Resolution Methods The article affirms the right of the investor, when he is a party to any dispute, including
Without prejudice to relevant laws : disputes that arise with the competent authority, to resort to the competent court,
1. The investor who is a party to any dispute, unless the parties to the dispute agree including disputes with the competent authority, otherwise, which is an embodiment of the may resort to the competent court, unless the principle of the freedom of the contractors parties to the dispute agree otherwise. to determine the means they deem
2. Investors may agree to resolve their disputes appropriate to adjudicate their disputes. through alternative dispute resolution The article also granted investors the methods, including arbitration, mediation, and right to agree on the settlement of their conciliation. disputes through alternative means such as arbitration, mediation and reconciliation. htnevelE Penalties
1. An investor who commits a non-serious violation of any of the provisions of Articles 7 or 8 of this Law shall be notified by the Ministry using any means determined thereby in order to rectify said violation within a period to be specified in the Regulations.
2. Without prejudice to any harsher penalty provided for in any other law, an investor who fails to rectify the non-serious violation referred to in paragraph (1) of this Article after the expiration of the period specified for rectification, or who commits a serious violation This article clarifies the penalties that may of any of the provisions of Articles 7 or 8 of this affect the investor when he violates the Law, shall be subject to one or more of the provisions of this Law and its executive following penalties: regulations. The article clarifies that the A. A warning. Ministry shall, in the first instance, notify B. A fine not exceeding three hundred the investor when he violates the provisions thousand riyals (SAR 300,000). The fine may of this Law and its executive regulations, be doubled in case of a repeat violation. in order to remove the violation by the C. Cancellation of registration. investor within the period specified by the Law, otherwise the investor is subject to any of the penalties stipulated in this
3. The Regulations shall specify the serious violations and the procedures for detecting article. The article took into account and recording such violations. the progressivity in determining the amount of penalty with the gravity of the
4. A committee or more shall be formed pursuant violation, its frequency, and the size of the to a decision by the Minister comprising no establishment. less than three members, one of whom at least shall be a legal specialist. Such committee shall consider the violations and impose the penalties provided for in paragraph (2) of this Article, and shall, upon determining the penalty, consider the gravity and frequency of the violation and the size of the establishment.
5. The Regulations shall specify the committee’s work rules and procedures, and the Minister shall, pursuant to a decision issued thereby, determine the remunerations of committee members. htflewT Appeal This article affirms that a grievance may be filed before the competent court against Any person against whom a decision is issued by the decisions issued by the Ministry with the Ministry may appeal said decision before the competent court within thirty days from the date of penalties, provided that it shall be made in notification thereof. accordance with the specified period. htneetrihT Obligations under International Agreements The article clarifies that the Law does not The provisions of this Law shall not prejudice any violate any of the Kingdom's obligations of the Kingdom's obligations under any applicable under an international agreement in force international agreement to which the Kingdom is a to which the Kingdom is a party. party. htneetruoF Activities, Special Economic Zones and Acquired Rights This article confirms that this Law is issued The provisions of this Law shall not prejudice the laws without prejudice to the special laws and of other agencies applicable to certain economic regulations that apply to specific activities activities or the laws of the special economic zones of the economy or special economic zones. in the Kingdom, provided that the investor enjoys, as a minimum, the rights stipulated in this Law. htneetfiF Regulations This article authorizes the Minister to issue the executive regulations of the Law, and The Minister shall issue the Regulations within they shall come into force from the date of one hundred and eighty days from the date of the entry into force of the Law according publication of this Law. The Regulations shall enter to the specified period of time. into force on the date this Law enters into force. Entry into Force This article emphasizes the publication This Law shall enter into force one hundred and of the Law through the official means of eighty days following the date of its publication in publication (the Official Gazette). It also the Official Gazette and shall repeal the Foreign explicitly states that the Law repeals the Investment Law issued by Royal Decree No. (M/1) "foreign investment Law", and it also dated 51421/1/ AH as well as any provisions repeals all provisions that contradict it. conflicting therewith. Views on the Updated Investment law. International Monetary Fund The International Monetary Report noted that the new Investment Law introduced for public consultations will help create equal opportunities for Saudi and non-Saudi investors by protecting investors› rights and supporting transparency. The report stressed that there must be an effective strategy to publicize these measures, which will help to ensure confidence in policies, stabilize investors› expectations and reduce their uncertainty.