
Saudi Arabia: Enforces Executive Regulations of Investment Law
Eye Of Riyadh, 27 April 2025: The Saudi Minister of Investment has approved the executive regulations for the Investment Law (Saudi Arabia Cabinet Decision No. 40/1446)
The regulations aim to enforce the provisions of the Investment Law and achieve its goals, focusing on equal treatment and non-discriminatory practices for both local and foreign investors under similar circumstances.
Article 3 of the Executive Regulations will entitle investors to equal treatment and non-discriminatory practices, ensuring fairness between local and foreign investors. The ministry will retains the right to regulate in accordance with local laws and regulations, prioritising public interest, including national security, public safety, and public order.
Article 7 of the Investment Law Executive Regulations, will grant investors the right to freely transfer funds related to their investments to and from Saudi Arabia. These transfers include initial capital, profits, capital gains, dividends, royalties, fees, loan repayments, proceeds from liquidation or partial sale of investments, and earnings of employees contracted abroad. However, these provisions do not apply to measures taken by competent authorities involving financial services for justified reasons, such as protecting investors, depositors, and policyholders, or ensuring the stability of the financial system
The ministry also has to notify foreign investors in writing when procedures which relate to national security have been initiated, unless circumstances dictate otherwise. It will also have the right to request information or documents deemed important for assessing the impact of foreign investment on national security. Foreign investors will have the right to express their views and submit relevant information during these procedures. The ministry may also engage in discussions with foreign investors to explore alternative measures to mitigate national security risks.
For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.
You can also explore the legal landscape by subscribing to our Weekly Newsletter.
Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.