Saudi Arabia Implements a New Corporate Law

As of Thursday, January 19, 2023, the new corporate law and its implementing regulations went into effect, according to statements from the Ministry of Commerce and the Capital Market Authority (CMA).
 

The ministry and the authority emphasized the new law's role in assisting businesses in expanding, overcoming obstacles, and staying updated with the various economic advances the Kingdom encounters. 

As part of their initiatives to complete the modernization and reform of the Kingdom's commercial and investment laws, they also emphasized the role of the law in regulating provisions linked to companies in all their forms within a single legislative document. The continuation of their cooperative efforts to establish unity and harmony in its execution, in a way that contributes to achieving its aims, the Ministry of Commerce and CMA had previously detailed the procedure for carrying out the new law's implementation for organizations.

In addition to its successful contributions to the sustainability of economic entities and enticing local investments, the corporate law is expected to contribute to strengthening the regulatory environment for businesses, facilitating procedures and regulatory requirements to stimulate the business environment and support investment, achieving balance among stakeholders, providing an effective and fair framework for corporate governance, and dedicating institutional work.

The new corporation law and its accompanying regulations can be found on the ministry's website, which the Ministry of Commerce and the CMA urged the public and anyone else who was interested to get familiar with. Click here. 

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