Saudi Arabia

Market Overview
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The Law Firm of Salah Al-Hejailan LLC was founded in 1968 by the late Sheikh Salah Al-Hejailan, who was awarded the honour of Commander of the British Empire (CBE) by HM Queen Elizabeth II in 2004 in recognition of his role as honorary legal adviser to the British Ambassadors to the Kingdom of Saudi Arabia (KSA). The firm is one of the oldest and largest law firms in KSA with offices in Riyadh, Jeddah and Al-Khobar, with over 30 lawyers drawn from a wide variety of jurisdictions (both Saudi and international).

In June 2022, the KSA Council of Ministers approved a new KSA Companies Law and the final approved version was published in the official gazette on 4 July 2022. The new Companies Law will come into force on 30 December 2022.

The new Companies Law introduces a number of developments and changes, compared with the 2015 Companies Law, which are critical to ensure alignment with KSA’s Vision 2030.

In this article, we answer frequently asked questions about doing business in KSA.

What are the principal regulations governing foreign investment into KSA?

The principal laws governing foreign investment are the Anti-Concealment Law and the Foreign Investment Law. These laws place governance of foreign investment in the KSA under the purview of the Ministry of Investment of Saudi Arabia (MISA) (formerly called the Saudi Arabian General Investment Authority), and make the investment in the KSA without the appropriate licences a crime punishable by a fine and/or imprisonment. The Anti-Concealment Law imposes penalties on any foreign entity operating in the KSA in breach of it and on any KSA national who assists a foreign national in such a breach.

Foreign companies establishing a legal presence in the KSA are also subject to the same corporate governance rules which apply to local KSA companies under KSA’s Companies Law. The provisions and requirements to comply with the regulations of MISA and to obtain the necessary licences from MISA are replicated in the Companies Law.

Finally, the Commercial Agencies Law applies to any foreign entity which does not wish to establish a legal presence in the KSA but wants to appoint a local KSA entity as its agent or distributor.

It has long been debated whether directors of a KSA company, particularly limited liability companies (LLCs) which are the principal investment vehicle used by foreign investors, owe fiduciary duties to the company and its shareholders. This has now been addressed by the new Company Law which imposes a duty of loyalty and care on all managers and directors of companies.

What licences or authorities are required before a foreign business can establish in KSA?

There are two main licences which a foreign investor must obtain in order to establish an entity in the KSA as well as several lesser licences which must be obtained following incorporation of the new KSA entity.

The key licences are the Foreign Investment Licence (FIL), which is issued by MISA and the Commercial Registration (CR) extract which is issued by the Ministry of Commerce (MOC). The FIL must be obtained before MOC will issue the new entity’s CR. The new entity is deemed to be incorporated once it has obtained its CR from MOC.

Following incorporation, the new entity must open accounts with various official agencies, including the Ministry of Labour, the Passport Office, the Chamber of Commerce, the General Authority of Zakat and Tax, the General Organisation for Social Insurance and the local municipality.

Can a foreign investor own 100% of its KSA LLC?

Under the 2015 Company Law, the concept of a single-member LLC was introduced subject to certain restrictions.

However, the new Company Law removes the restriction which prevented a single shareholder LLC from owning another single shareholder LLC, thus enabling the creation of group structures utilising 100% single shareholder LLCs.

Can names be freely chosen for LLCs in KSA?

Previously, there were restrictions on the format of names that could be used for companies in KSA. Generally, company names had to indicate the type of business being undertaken by incorporating words such as services or manufacture.

Under the new Company Law, some of the restrictions will be removed. It will be permissible for company names to be in a language other than Arabic and the name can be derived from one or a combination of the company’s purpose, its current or former shareholders or any other distinctive name.

How does a business set about getting a FIL?

The application for a FIL must be submitted to MISA. The key consideration when applying to MISA is that the activities which will be carried out by the new KSA entity must be clearly identified. These activities are described in, and selected from, the National Classification of Economic Activities document which is based on the International Standard Industrial Classification of All Economic Activities (ISIC4) issued by the United Nations Economic and Social Council.

Correctly identifying the activities to be carried out by the new entity is vital as it will determine the type of FIL which must be obtained and any minimum capital and local KSA shareholding requirements. The documents which must be provided in order to obtain a FIL will also depend on the activities to be carried out by the new entity but include, at a minimum, a copy of the applicant’s home country certificate of incorporation and its audited accounts for the last financial year.

Service fees are payable to MISA. Currently, the fees are a service fee of SAR2,000 (approximately GBP£410) per year and a subscription fee of SAR10,000 (approximately GBP£2,040) for the first year of the new entity’s life, rising to SAR60,000 (approximately GBP£12,240) for each subsequent year.

Are there any sectors of business in KSA that are closed to foreign investment?

MISA issues a list of activities which foreign entities are barred from carrying out. The list currently includes, amongst other activities, operating fisheries, oil & gas extraction and operating poison centres, blood banks, quarantine zones and recruitment offices.

What are the business structures generally used by foreign investors in KSA?

Although the new Company Law specifies eight different types of companies which may be incorporated in KSA, there are four main corporate structures which foreign investors generally use for investment into KSA. These are:

  • the LLC: the LLC is by far the most common type of entity for both foreign and local investors. As stated above, an LLC can be 100% owned by a single shareholder.
  • the Joint Stock Company (JSC): the JSC tends to be a less popular option for direct foreign investment into KSA due to higher initial capital requirements and stricter regulation. JSCs are normally chosen by bigger foreign investors who may wish to list the JSC on the Tadawul (the Saudi Stock Exchange) at some point during its lifetime. However, the new Company Law has introduced a new form of company, the simplified joint stock company (SJSC), which aims to meet the needs of entrepreneurs, private equity and venture capitalists. Similar to JSCs, the capital of SJSCs is issued in negotiable shares for trading in the capital market. Unlike JSCs, there is no minimum capital requirement for SJSCs. SJSCs also have simpler management structures and requirements and can be managed by one or more managers or a board of directors – thus creating greater flexibility for corporate governance.
  • the Foreign Company Branch: a KSA registered branch of a foreign entity is not a separate legal entity and is considered to be part of that foreign entity.
  • the Technical & Scientific Office (TSO): a TSO, once registered, cannot carry out any commercial activity in KSA. A TSO’s activities are restricted to providing technical information and support for the foreign company’s products to its KSA distributor(s) or end users.

Does a KSA company need to appoint auditors?

Under the 2015 Companies Law, all corporate entities in KSA were required to appoint auditors and produce audited financial statements. However, in a deregulation move designed to encourage entrepreneurship, the new Companies Laws exempt micro and small LLCs from the requirement to appoint auditors. It is expected that the implementing regulations of the new Companies Law will define the criteria for micro and small LLCs.

What happens if a company incurs losses?

A newly established joint venture company (JVCo) may incur losses during its start-up phase or during normal operations.

Under the 2015 Companies Law, where a company (JSC or LLC) incurs losses which exceed 50% of its paid-up share capital, the shareholders of the company must resolve to continue the company or seeks its liquidation. If the shareholders fail to pass the required resolution to continue the company, then the company is automatically dissolved by operation law.

The automatic dissolution provision is problematic as there is no easy route to procuring the formal liquidation of a company in these circumstances.

The new Companies Law removes the automatic dissolution by operation of law when losses exceed 50% of paid-up capital.

This will be particularly helpful for start-up entities, JVCos and existing entities developing new business lines of business which often incur significant start-up losses before delivering profits.

Can a foreign business access the KSA market without establishing a legal presence?

The only other way in which a foreign entity can access the KSA market without establishing a corporate presence is through the use of a local agent or distributor.

How does a commercial agency arrangement work?

Under KSA law, a foreign entity can appoint a local entity to act as its agent or distributor in KSA under an agency or distribution agreement. The agent/distributor must be 100% KSA owned and registered in the commercial agencies register maintained by MOC.

In addition, the agency/distribution agreement must be registered with MOC. Under KSA law there is no distinction between an agent and a distributor and, until recently, there was no separate law to deal with franchises. Specified clauses must be contained within the relevant agreement (e.g., the duration of the contract and its territorial application).

Foreign principals should be aware that there is also some inconsistency between what the law states and how MOC applies it in practice (e.g., MOC will normally require that exclusivity clauses are included in the relevant agreement even though it is not a requirement under the Commercial Agencies Law).

It is important to note that the agent/distributor must be fully independent of and cannot be seen to be operating under the direction of the foreign principal. If this is not the case, it could be considered to be a breach of the Anti-Concealment Law and relevant penalties could be applied against the foreign entity and its KSA agent.

Who is permitted to become a commercial agent?

An agent has to be either a KSA national or an entity wholly owned by KSA national(s) and must be registered with the relevant department at MOC. A foreign-owned entity cannot act as a KSA agent.

How does a foreign investor establish a joint venture company in KSA?

As described above, in order to establish a JVCo (with local or other foreign investors), the foreign investor(s) will need to obtain a MISA licence. Documents will also have to be provided by the local KSA shareholder.

It is also highly recommended that the relationship between and the obligations of the foreign and KSA shareholders in a proposed JVCo are clearly and expressly set out in and regulated by a shareholders’ agreement or other similar business venture agreement.

Prior to the new Companies Law, there was uncertainty and inconsistency on the part of KSA courts as to whether shareholders’ agreements were legally binding and enforceable in KSA. However, the new Companies Law recognises shareholders’ agreements and confirms that such agreements are accepted as being valid and binding provided such agreements do not conflict with applicable KSA law.

It is also essential that the articles of association of JVCo either reflect or are not inconsistent with the terms of the underlying shareholders’ agreement in order to avoid conflicts.

When establishing a JVCo in KSA, regard must be had to whether the JVCo will result in the creation of an economic concentration under KSA Competition Law which must be notified in advance to (and approved by) the KSA General Authority for Competition.

What cultural sensitivities should a foreign business be aware of when looking to establish in KSA?

The main cultural sensitivities to be aware of are those contained in Shari’ah law and revolve around the requirement for women to be modestly attired and the prohibition of dealing with haram (forbidden products) such as alcohol, gambling, etc.

From a corporate and business aspect, it is also important to note that the payment of interest is also prohibited in the KSA.

How does Shari’ah law affects foreign businesses wishing to operate in KSA?

Shari’ah law’s main impact is the prohibition on the payment of interest; however, Shari’ah-compliant Islamic financing arrangements are available from all leading KSA banks as an alternative to conventional financing.

Otherwise, it is important to note that Saudi courts do not normally grant awards for business aspects which are considered gharar or uncertain, (e.g., loss of profits, unless these can be proven directly).

What is the legal process for settling commercial disputes in KSA?

Commercial disputes in the KSA are normally resolved through amicable settlement, arbitration, the commercial court or one of the specialist judicial committees, such as the banking disputes committee.

Arbitration is only applicable if the parties agree to it after a claim arises or have already agreed to it in the relevant agreements between them (i.e., dispute resolution clauses). Arbitrations can be conducted in KSA, under the KSA Arbitration Law on an ad hoc basis or through an arbitration centre such as the Saudi Commercial Arbitration Centre, or abroad under the rules of an international arbitration organisation such as ICC.

A significant number of commercial disputes are resolved before the KSA commercial courts. Foreign investors should be aware that the courts of the KSA are highly procedural and dependent on a strong chain of evidence.

Finally, in certain specialist sectors, such as banking or insurance or for breach of the Anti-Concealment Law, disputes are resolved before sector-specific quasi-judicial committees which have quasi-judicial panels comprised of sector-specific specialists.

Further information

For further information, please contact:

Note:  This memorandum is for information only and does not constitute legal advice.

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Commercial, corporate and M&A

Gac’s Expanded Investigatory Powers: Common Antitrust Pitfalls Under The Kingdom Of Saudi Arabia’s Competition Regime

The Saudi Competition Law (Royal Decree No. (M/75) of 1440H, as amended) (the “Competition Law”) and its Implementing Regulations (the “Regulations”) have been in force for a substantive period, establishing a comprehensive legal framework (the “Competition Regime”). The General Authority for Competition (“GAC”) maintains an active and vigilant oversight of Saudi markets. Nevertheless, experience indicates that market participants often remain underprepared in navigating the full scope of the Regime’s prohibitions. Drawing from recent engagements, we observe that the most common compliance pitfalls are recurring themes: commercial arrangements, often well-intentioned, that inadvertently constitute resale price maintenance; output controls disguised as demand forecasting; and territorial management practices that cross into market partitioning. This article expands on our previous analysis of the GAC’s investigatory powers by detailing these persistent risks, elucidating the GAC’s enforcement perspective, and offering practical guidance to help businesses avoid regulatory exposure. Fixing Resale Price – The Conflation of Recommendation and Control The most consistent compliance risk arises from interference in the pricing autonomy of downstream customers. While rarely explicit, this practice commonly manifests through the circulation of recommended sale prices (“RSPs”). The critical issue emerges when RSPs are implemented with an expectation of adherence, reinforced through mechanisms such as: (i) conditioning commercial funding, stock compensation, or key account alignment on price compliance; or (ii) linking promotional support, rebates, or loyalty payments to a retailer’s maintenance of a specific shelf price. The GAC views such practices as violations of Article 5, Paragraph 1 of the Competition Law, which prohibits fixing or suggesting prices or other sale conditions. The GAC’s analysis is effects-based. Consequently, if internal guidance operates as a de facto directive, or if commercial benefits are withheld for price non-compliance, the GAC will likely characterize the conduct as illicit price-fixing. It is a safe conclusion that “non-binding RSPs” do not constitute a safe harbour where the commercial reality demonstrates a contrary effect. The key takeaway under article 5.1. is to ensure price guidance remains genuinely optional and to decouple all trade expenditure from adherence to a specific shelf price. Output Controls – A High-Risk Endeavour A similarly significant risk area involves the control of product or service quantities. This rarely appears as an overt directive to limit sales, but rather as periodic supply caps or gates applied to customers, channels, or regions. These are often framed as demand-planning exercises but function as hard stops once thresholds are met. A more complex variation involves pre-price-increase supply throttling to prevent “overstocking,” sometimes coupled with threats of clawbacks if a distributor exceeds an allotted cap. In legal terms, articles 5.2, 5.3, and 5.7 of the Competition Law prohibit practices that determine production quantities, limit the flow of goods, or restrict distribution. The GAC will look beyond commercial justifications to assess whether supply is being restricted for an anti-competitive purpose. Therefore, enforcing purchase ceilings, particularly in anticipation of pricing actions, is inherently risky. To manage commercial volatility, companies should utilize neutral tools related to credit, logistics, and service levels, tied to objective risk factors—not volume ceilings linked to commercial timing. Territorial Management Sliding into Market Partitioning In regionally structured supply chains, efforts to prevent cross-border “leakage” from neighbouring jurisdictions can swiftly devolve into prohibited market allocation. A company concerned that distributors in a higher-priced jurisdiction are sourcing products from a lower-priced neighbouring market may be tempted to implement restrictive measures. In this context, side letters or policies that penalize exports into neighbouring markets, delisting specific SKUs, or engineering portfolio differences primarily to render parallel imports less profitable—absent legitimate regulatory or consumer protection reasons—may be construed as anti-competitive territorial protection. Article 5.6 of the Competition Law contains a broad prohibition on allocating markets by geography, customer type, or sales channel. Furthermore, article 5.3 expressly targets restrictions on the free movement of goods. The Competition Regime adheres to the established distinction between active and passive sales: while a supplier may, in certain vertical contexts, restrict a distributor from activelytargeting sales in another distributor’s exclusive territory, it cannot prohibit passivesales—that is, responding to unsolicited orders from customers in that territory. This principle is clarified in the new GAC Guidelines on Dealing with Vertical and Horizontal Relationships, issued in July 2025. The Rebate Trap Rebates and trade expenditure are not inherently unlawful, and the Competition Law does not prohibit discounting. Liability arises when these commercial levers are structured to achieve prohibited outcomes. High-risk rebate structures include: (i) progressive rebate tiers tied to volume targets that effectively compel purchases irrespective of demand; (ii) conditional support linked to a customer’s adherence to a specific shelf price or promotion; and (iii) selective, non-transparent funding that advantages one key account over similarly situated rivals without objective justification. Such practices may violate article 5.1 of the Competition Law by constituting a fixing of sale conditions or resale price maintenance. For entities in a dominant position, article 6.4. introduces an additional layer of risk, as discriminatory treatment of trading partners can constitute an abuse of dominance. Recurring Abuse of Dominance Issues Entities holding market shares at or above 40% trigger a dominance analysis. Common missteps include leveraging discount structures and funding to discipline retailers that deviate from preferred RSPs and refusing to supply, or threatening delisting, to curb parallel trade or extract favourable terms. While such conduct is problematic for all market players, it is significantly amplified under article 6 for dominant entities. Practices such as price-conditioned supply and discriminatory terms attract heightened scrutiny and pose a substantially greater enforcement risk for dominant entities. Refresher: Key provisions of the Competition Regime the KSA Competition Law empowers the GAC to investigate anti-competitive behaviours in Saudi markets. As a reminder of the provisions addressed under our previous installment, remember that the Compettion Regime enables empowers the GAC to undertake its duties as follows: Article 15 of the Competition Law authorizes investigators of the GAC to inquire, gather evidence, and investigate violations of the Competition Regime where the GAC personnel would have equivalent to law enforcement capacity. Article 16 of the Competition Law authorizes the GAC personnel to seek the assistance of the competent authorities, including law enforcement agencies, to enable them to carry out their duties. Article 16 also prohibits any entity from obstructing the operations of any GAC officers or investigators, including prohibiting or withholding any information, providing misleading information, or concealing or destroying documents that benefit the investigation by the GAC. This is further emphasized by articles 36 through 38 of the Regulations. Such an umbrella of authority is furthered by granting GAC personnel extra-territorial authority to investigate foreign incidents with effects on the KSA market per the provisions of article 35 of the Regulations. A key element in fostering a healthy competitive landscape is recognizing the GAC’s substantial investigatory authority and proactively complying with the Competition Regime. Reiterating Competition Law Compliance As outlined in our previous instalment, proactive compliance measures are critical for mitigating risk under the Competition Regime. The following steps are fundamental to establishing robust antitrust policies and avoiding substantial financial sanctions. Conduct Regular Audits: Entities are advised to undertake legal due diligence reviews of their documents, operations, and commercial correspondence to ensure compliance. This is essential for identifying and remedying potential violations, and for assessing the entity’s overall risk profile, whether or not it is currently subject to GAC scrutiny. Fair Rebates: All entities in the market are encouraged to review their rebate schemes and implement an objective rebate programme, one that does not discriminate between any of the vendors benefiting from its implementation. Implement Employee Training Programs: Entities should provide comprehensive antitrust and competition training to all employees, with a focus on personnel in leadership, sales, and procurement roles. Training should delineate lawful versus unlawful practices, establish clear communication protocols, and detail reporting mechanisms to prevent violations. Establish Robust Internal Policies: Entities must draft and implement internal policies designed to mitigate anti-competitive risks. These should include clear guidelines on interactions with competitors, vendors, and customers, as well as protocols for pricing and market analysis. Seek Proactive Legal and Regulatory Guidance: When navigating complex or novel situations, seek expert legal counsel to ensure compliance and pre-empt regulatory issues. Conclusion Combating anti-competitive behaviour remains a work in progress for market participants. While multiple factors impact a company’s ability to ensure full compliance, consistent internal action and the cooperative nature of the GAC are key elements that enable businesses to successfully navigate the pitfalls of the Competition Regime and mitigate the risks associated with allegations of anti-competitive conduct and abuse of dominance. Authors: Asad Ahmad, Head of Anti-Trust & Competition and Khaled Al Khashab, Associate
GLA & Company - December 1 2025
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DLA Piper Advises on USD2.2 Billion Independent Water Transmission Pipeline Project

5 NOVEMBER 2025 – Global law firm DLA Piper has advised the Saudi Water Partnership Company (SWPC) on the successful close of the Jubail–Buraydah Independent Water Transmission Pipeline Project (IWTP), with a total project value of approximately USD2.2 billion. The project, which includes the development of a 587 km pipeline, will connect the Eastern Province of Jubail to the city of  Buraydah (in the Qassim region). It will be one of the largest water transmission projects in the Kingdom. Developed under a 35-year Build-Own-Operate-Transfer (BOOT) model, the pipeline, once complete, will have the capacity to transfer approximately 650,000 cubic meters per day of drinking water, enhancing water security for more than two million citizens. DLA Piper's role in this project builds on its work with the SWPC across its Independent Sewage Treatment Plant and Independent Water Project programmes. The firm has previously advised on landmark projects, including the first IWTP project, Rayis–Rabigh, and the first Independent Strategic Water Reservoir project, Juranah. The completion of this project reinforces the firm's leading capabilities in Project Finance and sectoral capabilities and knowledge, enabling it to structure and deliver complex, large-scale infrastructure projects that support the objectives of key initiatives, such as the National Water Strategy 2030 and Saudi Vision 2030.   The DLA Piper team was led by Adam Haque, a Dubai-based partner in the firm's Projects practice, part of the Finance practice. He was supported by a team from the firm's Dubai and Riyadh offices, including Finance Partner, and Co-Managing Partner of DLA Piper's Riyadh office, Paul Latto, along with Agathi Trakkidi (Finance, legal director), Rhys Rowland (Finance, senior associate), and Trisha Jivan and Abdulrahman Alhusain (both Finance associates). Commenting on the project, Adam Haque said: "This landmark project will transform the way water is supplied to millions of citizens across the region. Developed through the BOOT model, the project is a key example of how the Kingdom is increasing the use of public-private partnership financing for critical infrastructure that aligns with the Saudi Vision 2030. "The successful close of this project is another example of how our cross-border teams can support clients with notable and complex projects." DLA Piper's Finance practice is one of the driving forces of the DLA Piper global practice, providing market-leading insight and advice and representing leading investment and commercial financial institutions, public and private companies and government entities. The team advises clients across the full spectrum of banking/finance and capital markets, including asset-based lending, leveraged and debt finance, capital markets/high-yield bonds, derivatives, digital finance, fund finance, securitisation and structured finance, project finance, real estate finance, corporate treasury and venture finance. About DLA Piper DLA Piper is a global law firm helping our clients achieve their goals wherever they do business. Our pursuit of innovation has transformed our delivery of legal services. With offices in the Americas, Europe, the Middle East, Africa and Asia Pacific, we deliver exceptional outcomes on cross-border projects, critical transactions and high-stakes disputes. Every day we help trailblazing organizations seize business opportunities and successfully manage growth and change at speed. Through our pro bono work and community investment around the world, we help create a more just and sustainable future. Visit dlapiper.com to discover more. Contact Suraj Mashru, Senior PR Manager (UK), DLA Piper, +44 (0) 207 153 2617, [email protected] Jasmine Akouiradjemou, Communications and Events Manager (Dubai), DLA Piper, +971 4438 6119, [email protected]  
DLA Piper - November 7 2025
Commercial, corporate and M&A

A New Era for Arbitration in Saudi Arabia: Key Insights from the Draft Arbitration Law

The Kingdom of Saudi Arabia has taken a significant step forward in reshaping its arbitration landscape with the release of the Draft Arbitration Law. This development reflects Riyadh’s broader ambitions under Vision 2030 to become a hub for commerce, dispute resolution, and foreign investment in the Middle East. For businesses, investors, and practitioners alike, the law represents a modern, comprehensive framework designed to align with international standards while respecting Saudi Arabia’s unique legal identity rooted in Sharia principles. Modernization and International Alignment The Draft Arbitration Law streamlines procedures and introduces clearer definitions, greater flexibility for parties, and stronger enforcement mechanisms. Importantly, it applies not only to domestic arbitration seated in the Kingdom but also to international commercial arbitration with a Saudi nexus, should the parties agree. This dual scope underscores Saudi Arabia’s desire to attract cross-border commerce and investment by assuring international parties that arbitration proceedings will meet global best practices. Provisions governing interim measures, electronic communications, virtual hearings, and enforcement of awards demonstrate a clear effort to align with UNCITRAL standards while retaining a distinctly Saudi character. Key Highlights Arbitration Agreement: The law recognizes electronic formats and digital signatures, broadening access in today’s digital economy. Tribunal Composition: Arbitrators must have full legal capacity, but there are no restrictions on nationality unless parties agree otherwise, widening the pool of expertise available. Procedural Flexibility: Parties may select their own procedural rules, including institutional rules, provided they do not contravene Sharia and provides for virtual hearings and electronic submissions. This allows alignment with leading international arbitration centers. Interim and Conservatory Measures: For the first time, tribunals can order measures to preserve assets, maintain status quo, or secure evidence. Courts are empowered to enforce these measures quickly. Finality of Awards: Awards are binding and enforceable, with annulment limited to narrow grounds, such as violation of Sharia or public policy, improper tribunal formation, or incapacity of a party. Enforcement: Awards have the same res judicata effect as court judgments, subject to verification by Saudi courts. Certified Arabic translations are required for awards in other languages. A Balancing Act: Modern Standards and Local Identity The Draft Arbitration Law reflects a careful balance between international norms and domestic legal principles. While inspired by global models such as the UNCITRAL Model Law, its mandatory references to Sharia and Saudi public policy maintain continuity with the Kingdom’s legal tradition. This duality will be familiar to regional practitioners, but for international users it provides reassurance that Saudi Arabia is committed to predictability while remaining anchored in its constitutional foundations.   Business Confidence and Investor Protection For multinational corporations, joint ventures, and financial institutions, arbitration is often the preferred method of dispute resolution due to its neutrality and confidentiality. The Draft Law goes a long way in addressing investor concerns around enforceability and efficiency, especially by introducing time limits for certain procedures and enabling virtual hearings. These reforms support Riyadh’s strategic goal of becoming a regional hub for finance and trade. Opportunities for the Region For the wider Middle East, the Saudi reform raises the bar. It will encourage greater consistency across jurisdictions, increase investor confidence, and may well inspire similar updates in neighboring states. Given the Kingdom’s role as the largest economy in the GCC, this legislation is likely to influence the direction of arbitration reform across the region. GLA & Co’s Perspective As a firm deeply engaged in regional arbitration, GLA & Co recognizes the importance of this draft law for the legal community and business sector. Nader Al Awadhi, Senior Partner at GLA & Co, commented: “Saudi Arabia’s Draft Arbitration Law is a milestone for the Kingdom and for the region. It brings the Kingdom’s arbitration framework closer to international standards while preserving its unique legal identity. For businesses, it provides clarity, flexibility, and—most importantly—confidence that their disputes will be resolved fairly and efficiently. At GLA & Co, we view this as a positive development that will enhance Saudi Arabia’s role as a regional leader in dispute resolution.” Conclusion The Draft Arbitration Law marks a new era for dispute resolution in Saudi Arabia. By integrating international best practices with local legal traditions, the Kingdom is signaling its readiness to host high-value commercial disputes and to strengthen its attractiveness as a global investment destination. GLA & Co will continue to monitor the progress of this law closely and provide clients with up-to-date analysis and practical guidance. As the Middle East’s leading regional law firm, we remain committed to supporting clients in navigating this evolving landscape and in harnessing the opportunities it presents.
GLA & Company - November 5 2025
Press Releases

GLA & Co Secures Merger Control Clearance in Saudi Arabia for Bajaj Auto’s Acquisition of Controlling Stake in Pierer Bajaj AG

GLA & Company has successfully secured merger control clearance from the Saudi General Authority for Competition (“GAC”) in Saudi Arabia on behalf of Bajaj Auto International Holdings B.V. (the Buyer) in relation to its acquisition of an additional controlling stake in Pierer Bajaj AG (the Target) from Pierer Industrie AG (the Seller). The EUR 50,600,000 transaction grants the Buyer sole control over the Target, marking a significant milestone in Bajaj Auto’s long-standing partnership with the Pierer Group and in its strategic global expansion. GLA & Co’s Antitrust & Competition team, which was led by Asad Ahmad, Head of Anti-Trust & Competition with the assistance of Associates Khaled Al Khashab and Shahad Al Humaidani, advised the Buyer on all aspects of the Saudi merger control process, including preparing and submitting the economic concentration filing, compiling supporting documentation, and engaging with the GAC throughout the review to secure approval in less than a week from submission of filing fee. The Target, Pierer Bajaj AG, was established from the cooperation between Bajaj Auto Limited (“BAL”) and the Seller’s KTM brand in 2007, with the Target’s sole business being Pierer Mobility AG (PMAG), a holding company for KTM AG. The Buyer, a Netherlands-based wholly owned subsidiary of BAL, is part of one of the world’s leading manufacturers of two- and three-wheeled vehicles, headquartered in Pune, India. The Seller, Pierer Industrie AG, is a globally active industrial investment group with a diverse portfolio in the production and distribution of motorbikes, high-performance vehicle components, electric bicycles, and automotive wiring solutions. GLA & Co’s Antitrust & Competition team is recognized for its deep expertise in advising on complex merger control and competition law matters across the MENA Region. The team regularly supports clients in navigating regulatory frameworks, securing clearances for high-value cross-border transactions, and managing antitrust risks in diverse industries. Combining technical legal knowledge with great working relationships with the regulators, the practice is well-equipped to handle all aspects of competition law—from economic concentration filings to anti-competitive behaviour investigations and ensuring compliance in complex multi-jurisdictional deals. Alex Saleh, Managing Partner at GLA & Co, commented, “We are delighted to have supported Bajaj Auto in obtaining merger clearance from the GAC for this strategic transaction. This matter reflects the growing significance of competition law in cross-border industrial investments and demonstrates our ability to navigate complex regulatory processes in Saudi Arabia with precision and efficiency.” This clearance underscores GLA & Co’s leading position in advising on high-value, cross-border transactions and competition law matters across the MENA Region, cementing the firm’s reputation for delivering practical, business-focused legal solutions. For more information, please contact Alex Saleh, Managing Partner, or Asad Ahmad, Head of Antitrust & Competition.
GLA & Company - August 14 2025