Draft Saudi Arabian Bankruptcy Law

1. INTRODUCTION

On 24/12/1437 H. (25/9/2016 G.), the Ministry of Commerce and Investment ("MoCI") published the draft Bankruptcy Law ("Draft Bankruptcy Law") and a Clarification Guide (the "Clarification Guide"). The MoCI invited the public to submit comments on the Draft Bankruptcy Law by the end of 25/1/1438 H. (27/10/2016 G.). After this process is completed and the Bankruptcy Law is enacted, the MoCI must prepare implementing regulations with concerned Governmental authorities. These regulations must be issued with the approval of the Council of Ministers.

The Draft Bankruptcy Law was preceded by a policy paper (the "Policy Paper") that had previously been published by the MoCI for comments on 26/5/1436 H. (17/3/2015 G.). The Policy Paper described the main concepts that the legislator contemplated including in the Bankruptcy Law. The Draft Bankruptcy Law follows the broad lines of that paper.