LEGAL DEVELOPMENTS
Draft Bankruptcy Law approved
Saudi Arabia's bankruptcy and insolvency law regime has been
governed by two regulations, the earliest dating back to 1930.
These regulations have historically caused uncertainty and
hesitation amongst lenders and foreign investors. In
April 2015, the Ministry of Commerce and Investment (MOCI)
issued a draft policy paper for adoption of a more robust
bankruptcy and insolvency regime and, in
September 2016, the MOCI issued a draft Bankruptcy Law for
public comments and submitted the same to the Shoura Council for
approval.
In December 2017, the Shoura Council approved the draft
Bankruptcy Law. As the Shoura Council is primarily an advisory body
without legislative powers, the new Bankruptcy Law will be subject
to further approval prior to implementation.
