End of August, Saudi Arabia to begin work on the new bankruptcy law
Secretary of the Saudi bankruptcy committee at the Ministry of Trade and Investment, Majid Al Rasheed said, “The new system will provide better solutions to troubled companies.”
He also said, “There is no doubt that there are companies, not at their best because of their financial situation. They need to take advantage of the new bankruptcy system.” Further explaining that, “the new system will enhance the confidence of local and foreign investors and will boost Saudi Arabia rankings in global economic indicators especially insolvency reports.”
This new law was earlier approved in the month of February by the Saudi Cabinet. Earlier, the modern bankruptcy legislation did not exist in Saudi Arabia which created many difficulties for those companies that were struggling and were seeking to restructure their debt with the creditors.
Saudi Arabia is now embarking on a very intensive drive to change certain laws to help their economy which includes updating outdated laws as well in order to create an investor-friendly climate for investors and like-minded individuals that can help the nation grow by growing themselves in a very non-biased friendly environment.
The law exempts, “investors from labour laws, real state ownership restrictions and other regulations, in a step towards launching billions of dollars’ worth of infrastructure projects and attracting fresh foreign investment.”