Lawyers and policymakers in Saudi Arabia are putting the finishing touches to the country’s first ever insolvency law, forming part of a more comprehensive legal framework for business in the kingdom.
A source close to the Ministry of Commerce and Investment, which is responsible for drafting the new legislation, told IFLR that the new law draws inspiration from the US, Germany, the UK, France, Singapore and Japan, balancing that with the interests of the Saudi economy.
The world’s leading oil exporter is undergoing a drastic economic transformation, opening its doors to the international business community for the first time. Following years of planning, in May last year it granted qualified foreign investors (QFI) access to its Tadawul All Share Index.
The existing foreign investment law, enacted in 1997, has drawn criticism from lawyers over the years. They say the...