Investing in Saudi Arabian concerns by anyone outside of the Kingdom of Saudi Arabia must be done in conformance to Saudi law, including for example the Foreign Investment Act (the Foreign Investment Regulations promulgated by Royal Decree No. M/1 dated 5/1/1421 H. (10 April 2000) and its Rules of Implementation published on 7/6/1423 H. (16 August 2002).
Under Saudi law, any company with non-Saudi (foreign) shareholders must have a foreign capital investment license to do business here. The Foreign Investment Act does not limit the monetary amount of investment in the Saudi company, however. Additionally, it is possible under Saudi law for companies without any Saudi ownership (totally foreign owned and controlled) to do business in Saudi Arabia.
The Kingdom of Saudi Arabia, like other nations, is understandably concerned with foreign investment in its operations, assets, and property and Saudi law regulates foreign investment in many ways. The attorneys at Alsabhan & Alajaji Pinsent Masons LLC work with clients, both in and out of Saudi Arabia, regarding the current Saudi laws and regulations concerning national and foreign investments in Saudi Arabia. Alsabhan & Alajaji Pinsent Masons LLC likewise works with clients on how best Saudi investments can be implemented in the clients’ best interests.
These endeavors can include:
- Foreign investment in capital markets
- Foreign investment in mutual funds
- Offshore investments
- Investment partnerships
- Formation of new companies with foreign investment.
It is critical to have a global perspective coupled with an understanding of the global marketplace and the applicable laws and regulations that apply to any proposed foreign investment for that investment to be worthwhile and advantageous to the investor. This is true regardless of whether or not the investor is a small concern or a multinational fund. Alsabhan & Alajaji Pinsent Masons LLC provides this knowledge of law and business together with an understanding of other legal areas that may be related (and come to be important) in any foreign investment strategy, such as the firm’s commercial litigation expertise and familiarity with the intricacies of mergers and acquisitions.
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