Saudi Arabia will introduce its first comprehensive bankruptcy law on 18 Aug. 2018 in a move designed to encourage foreign and domestic investment in private business. The move is also seen as providing a boost for competitiveness and jobs, and to help pave the way for the transfer of knowledge and skills as part of a drive to modernize the economy.
Based on internationally recognized insolvency standards, the new rules have been drawn up to offer protection to creditors such as banks, as well as stricken companies that seek to wind up their affairs in an orderly manner, thereby shielding themselves from arbitrary seizure of their assets. “The new regulations will offer lenders, firms and their executives peace of mind and spur overseas investment in the private sector,” said Dario Najm ,Associate at BSA Ahmad Bin Hezeem & Associates LLP in Riyadh office. Read full article here