Saudi bankruptcy law to come into effect next month

Saudi Arabia’s new bankruptcy law will come into effect starting August 18, 2018, Majed Al Rasheed, advisor to the Ministry of Commerce and Investment, said on the sidelines of a workshop in Asharqia Chamber.

“The related executive regulations were prepared, and are currently being discussed,” he said.

In February, Saudi Arabia’s cabinet approved a bankruptcy law as part of its efforts to attract foreign investment and encourage private sector activity.

The move was aimed at strengthening the Kingdom’s efforts to create an investor-friendly climate for its economic diversification plans.

In December 2017, the Shura Council had approved a draft of the law, which consisted of 231 articles in 17 chapters. The legislation focuses on regulating bankruptcy procedures such as settlements and liquidation, for individuals, local and foreign companies.