By Innovation-sa on July 18, 2018 in News
Saudi Arabia will introduce its first comprehensive bankruptcy law on August 18, as the nation is on a drive to overhaul its economy. The new system will enhance the confidence of local and foreign investors in private businesses as well as boost Saudi Arabia’s rankings in global economic indicators especially insolvency reports.
The bankruptcy law, once established will provide better solutions to financially struggling companies, said Majid Al-Rasheed, secretary of the Saudi bankruptcy committee at the Ministry of Trade and Investment in an interview with Saudi newspaper Al Iqtesadiya.
The much-awaited law will also offer protection to creditors such as banks, as well as troubled companies that seek to wind up their affairs in an orderly manner, thereby shielding themselves from arbitrary seizure of their assets.
The law is applicable to any person practising commercial, professional or profitable activities in Saudi Arabia, as well as any Saudi-registered companies or foreign investors that own assets in the Kingdom through a Saudi-licensed entity. Once implemented, the law will be the sole regulation covering bankruptcy, effectively replacing previous rules passed in 1996.
Gulf News – 15 July 2018