Saudi Shoura Council approves bankruptcy law

The law outlines bankruptcy procedures of various kinds
Saudi Shoura Council approves bankruptcy law
Saudi Arabia’s Shoura Council has approved a 231-article draft bankruptcy law aimed at regulating bankruptcy procedures.
By Staff writer
Wed 13 Dec 2017 11:55 AM

Saudi Arabia’s Shoura Council has approved a 231-article draft bankruptcy law aimed at regulating bankruptcy procedures.

The draft law includes procedures for preventive settlement, financial reorganisation, liquidation and administrative liquidation, and includes specific procedures for small debtors.

The provisions of the law will apply to any person who conducts business in Saudi Arabia, as well as companies, organisations and non-Saudi investors.

In a September interview with Al Arabiya, Commerce and Investment Minister Majid al-Qusaibi said that he expected the bankruptcy law to be implemented in the first quarter of 2018.

In May, the planned law was praised by the International Monetary Fund, who noted it is part of a Saudi effort to improve conditions for private sector growth.

Additionally, the council approved a draft law on the transfer and Saudization of technology, which is aimed at heling the kingdom develop domestic scientific and technical capabilities.

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