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.

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Saudi Arabia: New Penalties on Elderly Care Law

Gulf News, 22 April 2025: Saudi Arabia’s Ministry of Human Resources and Social Development has introduced new regulations to improve labour inspections.

Under the updated framework, companies found in violation of labour rules will receive an electronic warning and must resolve the issue within three working days. Failure to comply results in a formal report and penalties, as per the ministry’s schedule of violations. Employers must submit relevant information about the violation via the ministry’s official email within the same period, with non-compliance leading to legal action.

The regulations enable inspectors to examine machinery, facilities, and safety protocols to verify occupational health measures. Inspectors must be Saudi nationals with a university degree or two years of relevant experience, along with specialist training. They are required to sign a confidentiality agreement and cannot be reassigned or dismissed without approval from the deputy minister or an authorised official.

Inspectors must carry official ministry-issued ID and present it during site visits, which can occur during any working hours, even in the employer’s absence. While prior notice is typically required, urgent circumstances may justify unannounced visits. Authorities will be permitted to access and copy both electronic and physical company records to verify compliance, ensuring inspections respect the rights of both employers and workers. Violations are recorded only after confirmation and formal notification, with employers given an opportunity to respond before any action is finalised.

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Saudi Arabia: New Penalties on Elderly Care Law

Gulf News, 11 April 2025: New penalties are being introduced to enforce the Elderly Rights and Care Law, Saudi Arabia Cabinet Decision No. 292/1443.

Executive regulations have been issued to enforce the Elderly Rights and Care Law, Thee introduce severe penalties for neglect and abuse, including up to one year in prison and a fine of SR500,000. Both government and non-government entities must provide comprehensive care, ensuring safe and accessible environments for the elderly and promote their active participation in society.

The executive regulations emphasise the dignity and inclusion of elderly individuals, recognising their right to respect as a fundamental duty. The law also provides a dedicated identification card for the elderly, which grants them priority access to services and reduces bureaucratic hurdles.

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Saudi Arabia: New Commercial Registry and Trade Names Systems Implemented

Saudi Pulse News, 3 April 2025: The Saudi Ministry of Commerce has implemented new systems for commercial registry and trade names.

The Saudi Ministry of Commerce has announced new systems for commercial registry and trade names that are now in force, along with the relevant executive regulations, from 3 April 2025. The new commercial registry system covered by Saudi Arabia Cabinet Decision No. 237/1446 will simplify business operations by consolidating all activities under a single national registry, eliminating the need for separate sub-registries for individual enterprises and companies. This change is expected to reduce financial burdens on businesses.

The system has introduced an annual electronic confirmation requirement for registry data, replacing the previous practice of renewing the registry. Traders must confirm their registry data every 12 months from the issue date. Failure to provide this confirmation within 90 days of its due date will result in the suspension of the registry and associated services, with automatic deletion after one year if not rectified. Businesses must also open bank accounts linked to their commercial entities to enhance reliability.

The trade names system and its executive regulations aim to bolster trust by regulating the reservation and registration of trade names, ensuring their protection and associated rights. The system allows trade names to be reserved for a specified period, which is extendable once, under certain conditions, and prohibits the registration of names which are similar to existing ones, even if the business activities differ.

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Saudi Arabia: Reforms to Stabilise Riyadh Housing Market

Gulf News, 2 April 2025: The Saudi government has implemented a series of reforms to address the rising costs of housing in Riyadh.

The reforms are designed to stabilise land values and rental rates, making housing more accessible to residents. A decision has been issued by the Saudi authorities, impacting property developers, landlords, and tenants in the region. The reforms include measures to regulate land prices, control rental increases, and incentivise affordable housing projects. The reforms are expected to have a significant impact on the housing market by curbing speculative practices and ensuring fair pricing.

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Saudi Arabia: Tourism Ministry Enforces Strict Penalties on Unlicensed Hotels

Saudi Gazette, 25 March 2025: The Saudi Ministry of Tourism has imposed strict penalties on unlicensed hotels, ensuring adherence to the Tourism Law Saudi Arabia Cabinet Decision No. 79/1444.

The Ministry of Tourism in Saudi Arabia has announced their continued enforcement of statutory penalties against hotels and tourism facilities which violate the Saudi Arabia Cabinet Decision No. 79/1444 and its executive regulations. The penalties include a maximum fine of SR1 million, closure, or both, for facilities which operate without a license from the ministry. Unlicensed tourist hospitality facilities must comply with the law and obtain necessary licenses before they can resume operations.

The ministry has undertaken a comprehensive survey of tourism facilities which have been closed to ensure their compliance with closure penalties and has coordinated with regional emirates and relevant agencies on periodic follow-ups. The regulations mandate that facilities correct their status and adhere to approved standards, which aim to improve service quality and ensure visitor safety.

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Saudi Arabia: New Camping and Drone Use Rules for Wilderness Areas

Okaz, 18 March 2025: The Saudi National Centre for Vegetation Cover Development and Combating Desertification has issued new rules on wilderness camps, with restrictions on drone use, camp locations, and environmental protection.

The rules aim to ensure environmental protection and sustainable use of vegetated areas. Key provisions include restrictions on camp locations, and prohibiting camping in environmentally sensitive areas, forests, grazing-regulated pastures, and flood-prone areas. Camps are classified into individual, investment, government, and private business categories, and each has specific licensing requirements.

The regulations prohibit the use of drones for photography without a license, as well as other activities such as digging wells, using non-compliant electrical equipment, and lighting fires in unauthorised areas. Licensees must set up camps within designated areas, and remove them within 10 days of the license expiring. Fire safety measures should also be undertaken. Where environmental damage is caused, damage will have to be repaired or compensation will be as determined by the Centre.

The decision will impact campers, investors, and businesses involved in wilderness camping, and drone operators. It does not repeal or amend existing laws but introduces new guidelines which are designed to enhance environmental protection and regulate camping activities. The rules will have immediate effect when they are issued, and compliance will be required for all future camping and drone operations.

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