<Minister of Commerce and Industry Dr. Tawfiq bin Fawzan Al-Rabeeah said that the new Companies Law is one of the most prominent economic development regulations issued by the state to provide an incubating and stimulating regulatory environment for initiative and investment, with the aim of enhancing the value of companies, developing their activity and contributing to the national economy. He pointed out that the new system will reduce the cost of procedures and encourage initiative in commercial activity, enhancing the Kingdom's leading position and competitive advantages, and encouraging investments by entrepreneurs and small and medium enterprises.
Minister of Commerce and Industry The Minister of Commerce and Industry explained that the new system provides the appropriate legal framework for fair and sound practices of corporate governance principles that enshrine the concepts of institutional work, support the growth and continuity of economic entities, as well as improve the performance of enterprises and the integrity of commercial transactions by applying sound and fair standards regarding transparency and disclosure and the role of shareholders' assemblies and boards of directors in formulating corporate strategies and their responsibilities for corporate activities.
The new system details the procedures and encourages entrepreneurs and small and medium enterprises (SMEs). The new law detailed the roles of the supervisory and regulatory bodies on companies, deciding the competence of the Ministry of Commerce and Industry with regard to all companies except the shareholding companies listed on the Saudi Stock Exchange, where the supervision and control shall be the competence of the Capital Market Authority.
In the same context, Al-Rabeeah extended his thanks and gratitude to the Custodian of the Two Holy Mosques King Salman bin Abdulaziz, His Royal Highness Crown Prince Mohammed bin Nayef bin Abdulaziz and His Royal Highness Deputy Crown Prince Mohammed bin Salman bin Abdulaziz for the approval of the new Companies Law by the Council of Ministers in its recently held session.
