Ministry of Commerce announced New corporate law in Saudi Arabia

As of Thursday, January 19, 2023, the new corporation law and its accompanying regulations went into effect, according to announcements from the Ministry of Commerce and the Capital Market Authority (CMA).

The ministry and the authority reaffirmed the new law’s role in assisting businesses with expansion, problem-solving, and keeping up with the overall economic changes the Kingdom experiences.

As part of their efforts to finish modernizing and reforming the Kingdom’s commercial and investment laws, they also emphasized the law’s function in regulating provisions pertaining to companies in all their forms under a single legislative text.

As a continuation of their cooperative efforts to establish unity and harmony in its application, in a way that contributes to accomplishing its aims, the Ministry of Commerce and CMA had previously detailed the procedure for carrying out the new law’s implementation for firms.

In addition to its successful contributions to the sustainability of economic entities and luring local investments, the corporate law is expected to contribute to strengthening the regulatory environment for businesses, facilitating procedures and regulatory requirements to stimulate the business environment and support investment, achieving balance among stakeholders, providing an effective and fair framework for corporate governance, and devoting institutional work.

The Ministry of Commerce and the CMA urged the general public and those who were interested in learning more to visit the ministry’s website at https://mc.gov.sa/ar/Pages/CS.aspx or the Authority’s website at https://cma.org.sa/Market/NEWS/pages/CMA to learn more about the new corporate law and its implementing regulations.