المدونة

Initially, Article Five of the rules regulating foreign investment in securities issued pursuant to Capital Market Authority Resolution No. (2-26-2023) permitted foreign natural and legal persons, whether residing in the Kingdom or non-residents, to invest in listed securities, debt instruments and investment funds. However, Article Six of the same rules stipulates that investment by non-resident foreigners in stocks listed on the main market is limited to the following categories:

What is the definition of joint stock companies in Saudi Arabia? Companies in the Kingdom of Saudi Arabia, according to what was explained in Article Two of the new Saudi Companies Law, are a legal economic entity. These companies are established in Saudi Arabia either based on a contract of incorporation or a bylaw under which two or more people commit to each contributing to a profit-oriented project. By offering a share of money or work, or both, to share the profit or loss resulting from this project.

If we look carefully, we will find a great interest from countries in the field of trade, this field, which is the cornerstone of the national economic forces of any country.

No one denies the many efforts that the Kingdom of Saudi Arabia continues to make to reach its desired goals in accordance with its vision for the year 2030 AD.

Foreign trade is considered one of the most important and largest areas that always receive attention in the Kingdom of Saudi Arabia

That, as we indicated previously, the shares of the joint-stock company in Saudi Arabia are the result of dividing its capital into negotiable shares, as indicated by Article Fifty-Eighth of the new Saudi Companies Law, as well as Article Sixty of the same Law.

The Kingdom of Saudi Arabia has not devoted its efforts to profitable fields only, such as trade, investment, etc., but has also been keen to support and develop non-profit fields on its soil.

In view of the importance of foreign investment in Saudi Arabia, we will discuss in this article the incentives and advantages enjoyed by the foreign investor in Saudi Arabia, which made it the best global economic engine that attracts foreign investments in the world.

The Kingdom of Saudi Arabia is always interested in establishing regulations and rules that guarantee people their rights and also that clarify their obligations through them, whether these people are individuals or establishments. transactions

First of all, the concept of a company is that it is an agreement whereby two or more parties undertake to contribute to a project, whether by providing a share of money or work, with the aim of participating in the profit or loss that arises from this project. As for the partnership contract, it is a contract that obligates two or more parties to participate in a project. By providing a share of the money or work, and sharing the profit or loss arising from the project, the company is considered a legal person once it is formed.

There is no doubt that the new companies’ system and its executive regulations are distinguished from the previous companies’ regulations, in terms of setting and facilitating all general controls for establishing companies in Saudi Arabia, in addition to its inclusion of many types of companies that were easily established before.

There are many important legal rules and procedures that the new Saudi corporate law left clarified to its executive regulations, and as soon as those executive regulations were announced, we wanted to highlight in this article all the legal features, procedures and rules that they included and that will be implemented from the date of entry into force of the new corporate law.