Legal Updates

The new Saudi Arabian Companies Law (1437H/2015G) (the "New Law") will come into force on 2 May 2016, replacing the previous law from 1965 and bringing with it some noteworthy changes to both limited liability companies and joint stock companies.  The introduction of the New Law addresses some of the perceived weaknesses of the old law and should be welcomed by both domestic and foreign investors, although it should be noted that foreign investors will still remain subject to the regulations of the Saudi Arabian General Investment Authority (SAGIA) which restrict foreign investment without a licence. 

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The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Readers should take legal advice before applying it to specific issues or transactions.

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