Saudi Chambers Union and Bankruptcy Commission sign MoU to support early warning initiative

The Saudi Chambers Union and the Bankruptcy Commission (Eisar) have signed a memorandum of understanding in Riyadh aimed at strengthening cooperation to support the early warning initiative. The agreement seeks to enhance the readiness of private sector enterprises to detect early signs of financial distress and address them promptly, thereby supporting business sustainability and improving the overall business environment.

The MoU focuses on expanding areas of collaboration by raising awareness of the bankruptcy system and its procedures, conducting studies, research, and surveys, developing educational programs, exchanging expertise, and building capacities. It also aims to leverage the network of chambers of commerce to reach private sector businesses across various regions of the Kingdom.

The MoU was signed on behalf of the Saudi Chambers Union by Secretary-General Eng. Sultan bin Mohammed Al-Musallam, while Secretary-General Abdullah bin Saad Al-Mughira represented the Bankruptcy Commission (Eisar).

The Secretary-General of the Bankruptcy Commission stated that the agreement marks an important step in strengthening integration between regulatory bodies and the private sector to support the early warning initiative. He noted that the initiative is designed to help businesses identify early indicators of financial distress and take appropriate action before issues escalate, thereby increasing their chances of continuity and preserving their economic value.

Strengthening business sustainability and improving the business environment

He added that the bankruptcy system has become one of the key regulatory tools supporting business sustainability, enhancing the business environment, and boosting investor confidence, in line with the goals of Saudi Vision 2030.

For his part, the Secretary-General of the Saudi Chambers Union, Eng. Sultan bin Mohammed Al-Musallam, affirmed that the MoU reflects the Union's commitment to supporting the private sector and enabling its enterprises to benefit from regulatory tools that promote business sustainability. He explained that cooperation with the Bankruptcy Commission (Eisar) will help raise awareness of the bankruptcy system, develop educational programs, and build capacities, in addition to utilizing the chambers' network to reach businesses across the Kingdom. This, he said, will enhance their readiness to face economic challenges and make timely decisions.

The MoU is part of ongoing efforts to strengthen public-private partnerships, activate the early warning initiative, and enable private sector enterprises to benefit from preventive tools that support business continuity. This contributes to improving the business environment and enhancing the competitiveness of the national economy in line with Saudi Vision 2030.