The updated investment system approved by the Cabinet is one of the pillars of the national investment strategy, within the framework of the Kingdom's Vision 2030 and the pivotal role of investment in achieving comprehensive development goals and diversifying the resources of the national economy, according to the Saudi Press Agency "SPA".
The updated investment system, which was approved by the Cabinet, is one of the pillars of the national strategy for investment. <According to the Invest in Saudi Arabia website, the investment system was prepared as an integrated system that replaces the Foreign Investment Law issued by Royal Decree No. (M/1) dated 5/1/1421 AH. To be consistent with the Kingdom's vision (2030) and the objectives of the National Investment Strategy and international best practices, in addition to taking into account the stable principles and policies of investment in the Kingdom approved by the Royal Directive No. (16917) on 27/3/1421 AH, in order to increase local output and achieve economic diversification by supporting the development of investment sectors, increasing the contribution of the private sector to local output and preserving the rights of investors, and taking into account the participation of the public through a public consultation where many government agencies and the private sector participated, and the Ministry of Investment held many workshops with international organizations about the system.
Article I: Definitions
<The following words and phrases, wherever used in the Law, shall have the meanings indicated in front of each of them, unless the context requires otherwise:
Regulation: Investment Law.
Regulation: The Executive Regulations of the Law.
Competent Authority: Any ministry or public body with independent legal personality.
Ministry: Ministry of Investment.
Minister: Minister of Investment.
Investment: The use of capital to establish, expand, develop, finance, partially or wholly own, or manage an investment project in the Kingdom in order to achieve economic benefit.
Capital: Any asset that has a material value in cash, in kind or in spirit, as defined by regulation, and includes, in particular, the following:
a. Shares and quotas in companies.
b. Contractual rights.
c. Fixed or movable assets.
d. Intellectual property rights.
e. Rights granted by law, such as licenses, permits or the like.
Capital does not include loans.
<Capital does not include loans, bonds, financing instruments, public and private debt instruments.
Investor: Any local or foreign investor.
Domestic investor: Any natural or legal person who makes an investment and enjoys Saudi Arabian nationality.
Foreign investor: Any natural or legal person who makes an investment and is not a local investor in accordance with the provisions of the Law.
Investment incentives: Any benefits, facilities or exceptions provided to the investor to encourage him to invest, in accordance with the relevant statutory provisions.
List of excluded activities: The list of activities prohibited or restricted to the foreign investor stipulated in Article (8) of the Law.
Recognized Currency: Any currency recognized by the Saudi Central Bank.
Article Two: Objective of the System
<The system aims to develop and enhance the competitiveness of the investment environment in the Kingdom and contribute to economic development and job creation by providing an attractive investment climate for investments, in accordance with the relevant regulations, including:1- Facilitating the establishment of an investment, owning assets in it, and exiting or liquidating it.
2- Guaranteeing and enhancing investor rights.
3- Ensuring equal treatment between local and foreign investors. 4- Ensure transparent, efficient and fair procedures for the investor and his investment. 5- Supporting the principle of competitive neutrality and fairness and ensuring equal opportunities in investment treatment.
Article III: Freedom of Investment
Without prejudice to the provisions of Articles (VIII) and (IX) of the Law and the provisions of the relevant regulations, an investor has the right to invest in any sector or activity available for investment.
Article Four: Investor rights
<Without prejudice to the provisions of the relevant regulations, the investor shall enjoy the following rights:
A- Equality in dealing with other investors, and equality in dealing between local and foreign investors in similar circumstances.
b. Fair and equitable treatment.
His investment shall not be confiscated in whole or in part except by a final court ruling, and his property shall not be expropriated directly or indirectly, except in the public interest and in accordance with legal procedures and in return for fair compensation.
D- Freedom to transfer his funds inside and outside the Kingdom without delay - including but not limited to transferring his investment proceeds and profits and selling or liquidating them - through regular channels using any recognized currency, and to dispose of them by any other legitimate means.
e. Freedom to manage his investment, dispose of it lawfully, and own what is necessary for the conduct of his business.
f. Protection of intellectual property and confidential business information.
g. Facilitating his administrative procedures and providing him with the necessary support and assistance by the competent authority.
2- When taking any measures to achieve the public interest - including measures necessary to fulfill the Kingdom's international obligations, maintain public order or considerations of national security - the competent authority shall take into account the rights stipulated in paragraph (1) of this Article.
3- The Ministry shall provide any available information or statistical data, as specified in the regulation, and provide the necessary services to the investor to facilitate any procedures related to his investment, and shall endeavor to address complaints submitted by him, according to clear and transparent procedures.
The Ministry shall provide the investor with any available information or statistical data.
Article V: Investor Obligations
The investor is obligated to abide by all laws and legislations in the Kingdom, and its obligations under international agreements to which it is a party.
Investor is obligated to abide by all laws and legislations in the Kingdom.
Article Six: Investment incentives
Without prejudice to the provisions of the relevant regulations, the granting of investment incentives to the investor by the competent authority shall be in accordance with specific and fair objective eligibility criteria, and the regulation shall specify the necessary provisions to enforce this.
2- A foreign investor must register with the Ministry before making any investment; as specified in the regulations. This does not apply to investment in securities subject to the provisions of the Capital Market Law
3- The competent authority shall provide the Ministry with the information or data it needs to establish or update the register stipulated in paragraph (1) of this Article, in accordance with the mechanism specified by the regulation, and the Ministry may communicate with the competent authority in order to complete any requirements for establishing or updating that register.
4- The Ministry may, through the comprehensive service center established in it, receive investor requests to issue any of the statutory approvals necessary to practice an investment activity, including any licenses or permits. The Ministry shall coordinate with the competent authority to issue any of these approvals to ensure that the investor meets the statutory requirements for them.
Article Eight: List of excluded activities
<The competent authority shall issue and update the list of excluded activities, and the Ministry shall publish it.
2- Before investing in any of the activities specified in the list of excluded activities, the foreign investor shall apply to the Ministry for approval. The Ministry shall submit the request to the competent authority.
3- The foreign investor, before making any change in the ownership of his investment in any of the restricted activities included in the list of excluded activities, must apply to the Ministry for approval. The Ministry shall submit the request to the competent authority.
Article Nine: Protecting National Security
The Ministry has the right to suspend any foreign investment to protect national security, provided that its decision to suspend is based on an objective basis and in line with the Kingdom's obligations under the international agreements to which it is a party, and in accordance with the procedures specified in the regulation.
Article Ten: Use of Alternative Dispute Resolution
<Without prejudice to the provisions of the relevant regulations:
1- An investor who is a party to any dispute - including disputes arising with the competent authority - may resort to the competent court; unless the parties to the dispute agree otherwise.
2- Investors may agree to settle their disputes through alternative dispute resolution methods, including arbitration, mediation and conciliation.
2- Without prejudice to any more severe penalty stipulated in any other law, the investor who fails to remove the non-serious violation - referred to in paragraph (1) of this Article - after the expiration of the period specified for removal, or who commits a serious violation of any of the provisions of Articles (VII) or (VIII) of the Law; shall be punished with one or more of the following penalties:
a. Warning. B- Imposing a fine not exceeding (300,000) three hundred thousand riyals. It may be doubled if the violation is repeated.
C- Deregistration.
<3- The regulation specifies the serious offenses and the procedures for controlling these offenses.
4- A committee - or more - shall be formed by a decision of the Minister, whose members shall not be less than (three); at least one of them shall be a specialist in regulations, in charge of examining violations and imposing the penalties stipulated in paragraph (2) of this Article. In determining the penalty, the committee shall take into account the gravity of the violation, its repetition and the size of the establishment.
5- The regulation shall specify the committee's work rules and procedures, and the Minister shall, by decision, determine the remuneration of its members.
Article Twelve: Grievance
Anyone against whom a decision of the Ministry has issued a penalty may appeal to the competent court within (30) days from the date of notification of the decision.
Any person against whom a decision has been issued by the Ministry may appeal to the competent court within (30) days from the date of notification of the decision.
Article Fourteen: Special economic activities and zones and acquired rights
The provisions of the Law are without prejudice to the regulations of other entities that apply to specific economic activities or special economic zones in the Kingdom, provided that the investor enjoys a minimum of the rights stipulated in the Law.
The provisions of the Law are without prejudice to the regulations of other entities that apply to specific economic activities or special economic zones in the Kingdom.
Article Fifteen: Regulations
The Minister shall issue the regulations within (one hundred and eighty) days from the date of publication of the Law, and shall be effective from its effective date.
Article Sixteen: Enforcement
The Law shall enter into force one hundred and eighty (180) days from the date of its publication in the Official Gazette, and shall repeal the Foreign Investment Law issued by Royal Decree No. (M/1) dated 5/1/1421 AH, as well as any provisions that contradict it.
