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Article Saudi Arabia: Updated Investment Law Enters into Force

On February 12, 2025, the updated Investment Law came into force in Saudi Arabia. The new law introduces a unified investment framework applicable to both foreign and domestic investors. It is designed to enhance competitiveness and protect investor rights. Furthermore, it adheres to the Saudi 2030 vision plan, which calls for diversifying the economy and attracting international investments to the kingdom.

The updated law eliminates the previous distinction between Saudi investors and non-Saudi investors. It replaces earlier investment licensing requirements for foreign investors with a more streamlined registration process, significantly reducing procedural barriers to entry into the Saudi markets. (Arts. 4, 7.)

The law contains investor protections, including a guarantee of fair and equitable treatment and safeguards against expropriation, except through a final judicial ruling and with fair compensation. In addition, it affirms the right to transfer profits, returns, and liquidation proceeds abroad. (Art. 4.)

The executive regulations implementing the new law authorize the Ministry of Investment to intervene when national security is at stake. The ministry has the authority to coordinate with relevant government bodies and take preemptive or corrective actions against investors. (Art. 9.)

If a dispute arises between an investor and the government, the updated law allows the use of alternative dispute resolution mechanisms, including arbitration and mediation, to foster a more flexible and efficient investment environment. (Art 10.)

The executive regulations to the updated Investment Law were adopted pursuant to Ministerial Resolution No. 1086, issued by the minister of investment. They entered into force concurrently with the updated law on February 12, 2025, and were published on April 25, 2025, in the official gazette of Saudi Arabia, Um Al-Qura’ Gazette, issue 5083.

Prepared by Rana Almalki, Law Library Intern, under the supervision of George Sadek, Foreign Law Specialist

Law Library of Congress, June 11, 2025

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Chicago citation style:

Sadek, George. Saudi Arabia: Updated Investment Law Enters into Force. 2025. Web Page. https://www.loc.gov/item/global-legal-monitor/2025-06-11/saudi-arabia-updated-investment-law-enters-into-force/.

APA citation style:

Sadek, G. (2025) Saudi Arabia: Updated Investment Law Enters into Force. [Web Page] Retrieved from the Library of Congress, https://www.loc.gov/item/global-legal-monitor/2025-06-11/saudi-arabia-updated-investment-law-enters-into-force/.

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Sadek, George. Saudi Arabia: Updated Investment Law Enters into Force. 2025. Web Page. Retrieved from the Library of Congress, <www.loc.gov/item/global-legal-monitor/2025-06-11/saudi-arabia-updated-investment-law-enters-into-force/>.