New corporate law comes into force in Saudi Arabia

New corporate law comes into force in Saudi Arabia
New corporate law comes into force in Saudi Arabia

The Ministry of Commerce and the Capital Market Authority (CMA) announced that the new corporate law and its implementing regulations came into force as of Thursday, Jan. 19, 2023. The ministry and the authority confirmed the contribution of the new law in enabling companies to grow and expand, address challenges and keep abreast of the economic developments the Kingdom witnesses at all levels.

They also pointed out to the law's role in regulating provisions related to companies in all their forms, within a unified legislative document, as part of their efforts to complete the modernization and reform commercial and investment laws in the Kingdom. The Ministry of Commerce and CMA had previously explained the mechanism for implementing the new law for companies, as an extension of their joint efforts to achieve integration and harmony in applying it, in a way that contributes to achieving its goals.

The corporate law is set to contribute to strengthening the regulatory environment for companies, facilitating procedures and regulatory requirements to stimulate the business environment and support investment, achieve balance among stakeholders, provide an effective and fair framework for corporate governance, and devote institutional work, in addition to its effective contributions to the sustainability of economic entities and attracting local investments, as well as foreign sources, providing sustainable financing sources, meeting the needs and requirements of the entrepreneurship sector, and stimulating the growth of small and medium enterprises. The Ministry of Commerce and the CMA called on the public and those interested to get acquainted with the new corporate law and its implementing regulations on the ministry’s website at the link: https://mc.gov.sa/ar/Pages/CS.aspx, or via the Authority’s website at the link: https://cma.org.sa/Market/NEWS/pages/CMA_N_3264.aspx.

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