Saudi Arabia announced the enforcement of its new corporate law from Thursday, January 19.
The new law is to bring various company-related regulations within a unified legislative format, and is part of the country’s efforts to modernise and reform its commercial and investment laws.
Saudi Arabia’s new legislation
The Saudi ministry of commerce said the new corporate law is to strengthen the regulatory environment for companies, facilitating procedures and regulatory requirements to stimulate the business environment and support investment.
It will also provide an effective and fair framework for corporate governance and attract local and foreign investments, besides stimulating the growth of small and medium enterprises.
Saudi Arabia’s Capital Market Authority (CMA) board also approved the implementation of the new companies law for listed joint stock companies.
Besides the new corporate law, the CMA board’s resolution also included amending the corporate governance regulations, the merger and acquisition regulations and the rules on the offer of securities and continuing obligations.
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