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Saudi Arabia: Transformation of the Kingdom
Welcome to the Saudi Arabia focus edition of Law Update.
One of the key markets in the Middle East and North Africa (MENA) that continues to lead from the front is the Kingdom of Saudi Arabia (KSA). As the largest country in the Middle East and the 18th largest economy in the world, the progress KSA continues to make is underpinned by its Vision 2030 that envisions developing the country as an investment powerhouse and hub that ultimately connects Asia, Europe, and Africa. Given Saudi Arabia’s significance to the regional economy, our team of experts have prepared a range of pertinent articles that provide insights into new laws, regulations, and the legal landscape in the Kingdom.
This edition will provide you with an up-to-date guide on matters such as; the framework issued by the Saudi Central Bank on IT governance, the anti-corruption landscape under Vision 2030; we also provide practical tips for dispute avoidance. This is only a snapshot; there are many more articles within the KSA focus section for you to read, which we hope you will find valuable and enjoyable.
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A complete spectrum of legal services across jurisdictions in the Middle East & North Africa.
New Qatar Foreign Capital Investment Law
The Qatar Foreign Capital Investment Law (Law no 13 of 2000) has now been replaced by a new Foreign Capital Investment Law (Law no 1 of 2019) (the “Foreign Investment Law”). The law comes into force upon issuance of executive regulations and not before 24 February 2019.
The restriction that had been imposed on foreigners not being able to hold more that 49% of private Qatari companies (except in limited circumstances) has now been removed by the Foreign Investment Law, provided that consent for ownership above the level if 49% is approved by the competent department of the Ministry of Commerce and Industry. At this stage no guidelines concerning the exercise of the Ministry’s discretionary approval have been released, although the same is envisaged to be put into place by future executive regulations.
Non-Qataris are still restricted from holdings in banks, insurance companies and commercial agencies. The prior restrictions on trading in real estate has been removed. Banks and insurance companies may still obtain an exception by resolution of the Cabinet, The Cabinet is also empowered to place restrictions on other fields of activities.
Another significant change is that companies and individuals authorised by Qatar Petroleum to perform petroleum operations or which aim to invest in the oil, gas and petrochemical sector are exempt from the provisions of the Foreign Investment Law.
One point to bear in mind is that the decision to approve ownership above 49% is a discretionary authority granted to the Ministry of Commerce and Industry. In the event of an in favourable decision, an aggrieved party can appeal to the Minister of Commerce and Industry but no rights to appeal beyond that are available.
Al Tamimi & Company have advised on a wide variety of corporate structuring and restructuring related projects. The strength of our team comes not only from our in-depth knowledge of relevant laws and regulations, but also from our awareness of the regional regulatory practices which we have developed by having very close working relationship with regulatory authorities and ministries in Qatar.
If you would like to know more information on the new law and procedures, contact:
Ahmed Jaafir
Partner, Head of Corporate Structuring – Qatar
a.jaafir@tamimi.com
Frank Lucente
Partner, Corporate Commercial
f.lucente@tamimi.com
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