Minister approves executive regulations of Investment Law

Saudi Minister of Investment approved the executive regulations of the Investment Law, aimed at enforcing its provisions and achieving the goals and objectives set forth therein.

According to Umm Al-Qura official gazette, the regulations consist of 37 articles and came into effect on the date of the law enforcement.

Based on Article 3 of the regulations, investors are entitled to equal treatment with other investors and to non-discriminatory treatment between local and foreign investors under similar circumstances.

The regulations also states that the ministry retains the right to regulate in accordance with local laws and regulations as required by public interest, including, but not limited to, the protection of national security, public safety, and public order.

Moreover, Article 7 stipulates that investors have the right to freely transfer funds related to their investments to and from the Kingdom without delay. These transfers include, but are not limited to:

- (a) Initial capital and additional amounts for maintaining or increasing investments.

- (b) All profits, capital gains, dividends, royalties, fees, and other current income.

-  (c) Payments made under contracts, including loan repayments related to investments.

- (d) Proceeds from the liquidation or partial sale of an investment.

- (e) Earnings and salaries of employees contracted abroad who are engaged in investment-related activities.

The provisions related to fund transfers do not apply to measures taken by competent authorities concerning financial services for justified reasons, including protecting investors, depositors, and policyholders, or ensuring the stability and soundness of the financial system.

The ministry must notify a foreign investor in writing when procedures related to national security are initiated, unless circumstances require otherwise. It also reserves the right to request any information or documents it deems important for assessing the impact of foreign investment on the Kingdom’s national security.

Foreign investors have the right to express their views and are given the opportunity to submit relevant information and documents during the procedures.

Furthermore, the ministry may hold discussions with the foreign investor to explore alternative measures to mitigate national security risks.