On this occasion, Minister of Investment Eng. On this occasion, Investment Minister Khalid bin Abdulaziz Al-Falih said that the issuance of the Investment Law comes as an extension of the many developmental measures taken by the Kingdom and confirms its commitment to providing an attractive, supportive and safe environment for local and foreign investors, according to the Saudi Press Agency (SPA).
Saudi Press Agency (SPA) reported.
Falih said that the issuance of the Investment Law is one of the pillars of the national investment strategy. Al-Falih explained that the Kingdom's approach to enhancing the attractiveness and competitiveness of the investment environment, especially in the regulatory and legislative aspects, is based on the contents of the economic principles guaranteed by the Basic Law of Governance and takes into account the established investment principles and policies, which include the best international practices in this regard; this necessitated the revision of the foreign investment system, which was issued about 25 years ago, to formulate an integrated investment system that addresses both Saudi and foreign investors.
Al-Falih explained that the Kingdom's approach to enhancing the attractiveness and competitiveness of the investment environment, especially in the regulatory and legislative aspects, is based on the contents of the economic principles guaranteed by the Basic Law of Governance.
Al-Falih pointed out that the years of the investment system have witnessed the establishment of special economic zones. <The Minister of Investment stated that the past few years have witnessed the implementation of more than 800 economic reforms to enhance the Kingdom's global competitiveness, and the National Competitiveness Center, in integration with the relevant government agencies, had a leading role in implementing them, all of which and other regulations and reforms contributed to an increase in the gross fixed capital formation by 74%, compared to 2017, to reach nearly 300 billion dollars in 2023, the stock of foreign direct investment increased by 61%, between 2017 and 2023, to reach about 215 billion dollars, and foreign direct investment flows increased by 158% in 2023 compared to 2017, to reach 19.These initiatives and developments, in addition to incentives, facilities and enablers, have incentivized investors to invest in a positive, supportive and stable investment environment.
He emphasized that the preparation of the Investment Law and its executive regulations will come into effect in early 2025. It is noteworthy that the investment system was prepared in a joint effort and cooperation between the Ministry of Investment and several relevant government agencies, in extensive consultation with a number of international organizations, and in consultation with investors to ensure its compatibility with international best practices.
This system is a framework for the investment system and its executive regulations will enter into force in early 2015. <The system represents a unified framework for investors" rights and duties, reinforcing the Kingdom's well-established foundations, including the rule of law, fair treatment, property rights, freedom to manage investments, protection of intellectual property, and the smooth transfer of funds. The system also aims to facilitate transparent and clear regulatory procedures in a flexible, fair and competitive environment that realizes the principle of equal opportunities and fair treatment between local and foreign investors, and encourages the use of alternative means of dispute resolution.
The system also encourages the use of alternative dispute resolution.
