News developments
Saudi Arabia’s Commerce Minister has announced they have approved an amendment to the bylaws of the Saudi Foreign Business Councils. Under Saudi Arabia Ministerial Decision No. 56103/1442, a system will be implemented to review the Regulations after a year. It will come into force on its issued date and has been published in the Official Gazette.
News developments
The Board of Saudi Arabia’s Capital Market Authority has announced foreigners can directly invest in listed and unlisted debt instruments. The decision has been issued in line with the Authority’s plan to develop the financial market through the Financial Leadership Programme. It is also part of the Financial Sector Development Programme, which is one of the main programmes to meet the Kingdom’s Vision 2030. Under the Decision, all foreign natural and legal persons can directly invest in debt instruments. Non-resident foreigners cannot invest in the market as a direct investor in listed debt instruments and as a qualified foreign investor or final beneficiary in a swap agreement at the same time. A foreign person who invests directly in debt instruments cannot convert them into shares listed in the main market unless they are one of the categories of investors who are allowed to invest directly in shares listed on the main market, or becomes a final beneficiary in a swap agreement according to the provisions of the Authority’s instructions regarding swap agreements.
News developments
Saudi Arabia’s Centre for Commercial Arbitration has signed a cooperation agreement with the British Royal Society of Legal Surveyors. The agreement is aimed at encouraging the use of alternatives to settling disputes, particularly mediation in the contracting sector. It is also aimed at encouraging and enhancing growth and boosting confidence and investment in the contracting and real estate sector in the Kingdom. The Centre added the agreement is aimed at establishing a long-term cooperation relationship to encourage the exchange of professional knowledge and professional development of dispute settlement and avoid contracting sector disputes.
News developments
Saudi Arabia’s Human Rights Commission has unveiled a campaign against trafficking in people. The campaign, entitled ‘Together to Combat Trafficking in Persons in the Kingdom’ was launched by head of the Human Rights Commission ahead of the World Day Against Trafficking in Persons which is marked on 30 July. In recent years, Saudi Arabia has also sought to reform its justice system. Recent changes have included the abolition of the death penalty for minor offenders and flogging as a form of punishment.
News developments
The General Director for Systems and Companies Policies in Saudi Arabia’s Trade Ministry has announced the new companies law will allow new types of companies to be established. This will include simple joint stock companies who will have the characteristics of a joint stock company but will have flexibility in capital formation and issuing new types of shares. There will be also other types of companies. This will include two parties where one is a joint partner who will be personally responsible for their money and another who is a shareholder.
News developments
Saudi Arabia’s Enforcement Courts will start allocating judicial liquidations exclusively to the Entrustment and Liquidation Centre. It follows the signing of an agreement between the Justice Ministry and infath. It identifies the scope of activities to be covered and provides the necessary governance and accountability measures for fulfilling rights in a timely way. infath will be able to commission qualified and licensed private sector companies to participate competitively in the Liquidation Activities under the Centre’s supervision. Interested parties in in local and international licensed companies in chartered accounting, law and legal services, evaluation, engineering advisory, judicial custody, property management, treasury, marketing and sales companies can register at infath.sa. Infath will then evaluate and assign each case to suitable service providers based on their experience and the nature of the asset.
News developments
Saudi Arabia’s Justice Minister has announced the Implementing Regulations to the Commercial Courts Law have been approved. The Regulations include various procedures and rules for the Kingdom’s commercial court system. They include controls for using the private sector and licensing technical opinions and expanding experts. They also set out procedures for grievances and objections to performance orders, raising appeals, defining judgments and decisions with or without pleadings, seeking reconsideration and denunciation, the length of consideration of uncomplicated cases, their procedures and the conditions and rules of collective lawsuits. The aim is to raise judicial quality in this area and ensure disputes can be adjudicated quicker. It is also aimed at consolidating the Kingdom’s commercial environment and providing better protection of commercial rights to attract more investment.
News developments
Saudi Arabia’s Justice Ministry has launched a new e-litigation service as part of the Ministry’s digital transformation drive. On the first day it saw 7,200 written pleadings, 750 video conferencing hearings and 550 judgments. 1,050 of them were held in Jeddah and 450 in Mecca. Its procedural guide will be reviewed every month to resolve any issues. Among other things, the service enables the exchange of pleadings, submission of documents, remote hearings and proceedings, issuing of verdicts and copies of judgments and appeals to the higher court.
News developments
The Human Resources and Social Development Ministry in Saudi has issued detailed COVID-19 guidance on returning to work in the private sector. Issues covered include communal areas, travel to work, best practice while in the work environment and employer’s reporting responsibilities.
News developments
According to local media reports, Saudi Arabia’s Finance Ministry has tripled the VAT rate from 5% to 15%. The increased rate will come into effect on 1 July. The cost of living allowance will be withdrawn from 1 June. It comes as the Kingdom’s economy tackles plunging oil prices and Coronavirus. The Finance Minister added some Government projects could be slowed down to help reduce spending. According to sources, this could include a 30 billion Riyal cut in projects related to Vision 2030 in the Kingdom. In a related development, the country’s General Authority of Zakat and Tax have called for nationals and expatriates to report anyone who increases VAT on their goods before then via the call centre on 19993 or the VAT application on smart phones. Anyone who violates this Decision will be prosecuted.
