The Saudi Ministry of Commerce and Investment says the kingdom’s new bankruptcy law will take effect on August 18.
The measure was approved in February. It consists of 231 clauses distributed over 17 chapters addressing three areas – preventative settlement, financial reorganisation and liquidation.
According to Majed al-Rasheed, secretary general of the bankruptcy committee at the Ministry of Commerce, the new law will improve Saudi Arabia’s international standing in dealing with insolvency.
The country currently ranks 168 out of 190 countries according to the World Bank.
Policy makers hope the new law will cater for a more dynamic investment climate and encourage greater foreign investment in the Saudi economy.
©2018 funds global mena