Saudi Arabia unveils updated investment laws to attract international investors

RIYADH: Saudi Arabia’s Minister of Investment Engineer Khalid Al-Falih has stated that the Kingdom of Saudi Arabia (KSA) has updated the Saudi Investment Law and relevant regulations with effect from the beginning of the new year, 2025.

The upgraded laws offer a conducive environment to the investors in order to position KSA as highly important destination for international investors, he added.

“The updated law is an extension of many development measures taken by the Kingdom, and confirms its commitment to providing an attractive, supportive and safe environment for local and foreign investors,” Al-Falih said.

Saudi Council of Ministers has recently approved the Investment Law and its executive regulations. Minister of Investment Engineer Khalid Al-Falih highlighted that the new law is in consistency with Crown Prince Mohammed bin Salman’s Vision 2030 and the National Investment Strategy. The law is expected to enhance investment in KSA amidst the global declining trend of foreign direct investment (FDI).

The updated Investment Law is a key component of Saudi Arabia’s Vision 2030, aimed at driving economic diversification and growth. Developed by the Ministry of Investment of Saudi Arabia (MISA) following extensive consultations, the law consolidates investor rights and provides a unified legal framework that aligns with international standards.

The new law is aimed at enhancing transparency, easing regulatory restrictions, and promoting fair competition.

Key features of the updated law include streamlined procedures, simplified registration, and effective dispute-resolution mechanisms.

The law also attempts to ensure equal treatment for both domestic and international investors. This reform is part of broader initiatives that have significantly boosted foreign direct investment (FDI), with FDI inflows increasing by 158%, from $7.46 billion in 2017 to $19.3 billion in 2023.

The total FDI balance rose by 61% to $215 billion, while gross fixed capital formation surged by 74% to nearly $300 billion. The law is expected to further enhance Saudi Arabia’s position as a leading global investment destination, supporting the Kingdom’s goals of creating competitive, smart, and prosperous cities.