Commerce minister also says Gulf kingdom is working on new laws for commercial mortgages, franchising
Saudi Arabia will reportedly begin implementing a new bankruptcy law early next year.
Under current legislation there is no easy way to wind up the activities of indebted companies in Saudi Arabia and the new law is part of efforts to attract more foreign investment, Saudi-owned broadcaster Al Arabiya reported citing the kingdom’s commerce minister.
It quoted Majid al-Qusaibi as saying: “(The) bankruptcy law has been passed to the Shura Council and we expect it to be implemented by the end of the first quarter of 2018."
Saudi Arabia is also working on new laws regarding commercial mortgages and commercial franchising, Qusaibi added.
In July, the International Monetary Fund (IMF) said Saudi Arabia has made "considerable progress" in reforming its economy as part of its Vision 2030 programme announced in 2016.
In a report, the IMF said fiscal consolidation efforts are "beginning to bear fruit", as reforms to improve the business environment are gaining momentum, and a framework to increase the transparency and accountability of government is largely in place.