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Find out moreThe first Law Update of 2024 is here, and our first focus of the year spotlights Healthcare and Lifesciences, a sector that is undergoing significant growth and development across the MENA region.
Our focus provides an insight into some of the most important regulatory updates across the region, such as the UAE’s groundbreaking law on the use of human genome, Kuwait’s resolution on nuclear and radioactive materials, the new regulations for healthcare services in Qatar, Egypt’s healthcare regulatory framework, and the impact of the Saudi Civil Transactions Law on the healthcare and life sciences sector … and there is so much more!
Beyond the healthcare pages our lawyers share with you multi-sector insights where you will discover articles on Dubai’s DIFC regulatory framework for startups, Bahrain’s commercial agencies law, and we also shed light on Kuwaiti civil code and the advantages of setting up a joint stock company in Saudi Arabia.
Read the full editionOn Tuesday 28th June 2022, the Council of Ministers has approved the long-awaited new Companies’ Law (“New Law”). The New Law was enacted by Cabinet Resolution No. 678, dated 29/11/1443H (corresponding to 28th June 2022) and ratified by Royal Decree No. (M/132), dated 01/12/1443H (corresponding to 30th June 2022), and consists of (281) articles. The New Law, which is in line with the Kingdom’s 2030 Vision, introduces new changes, allows greater flexibility, safeguards businesses’ interests, empowers the private sector and follows the best international practices.
The Companies Law of 1437H (2015) and the Professional Companies Law of 1441H (2019) will be repealed, and any other provisions (in any other law in force) which are in conflict with the New Law will be overridden by the New Law, once it comes into effect, (180) days following its publication in the Official Gazette.
The New Law regulates commercial companies, non-profit companies and professional companies, and it enables investors to incorporate any of the following types of companies: (1) Joint Liability Company (2) Limited Partnership Company (3) Joint Stock Company (4) Simple Joint Stock Company and (5) Limited Liability Company.
The New Law has, specifically, introduced a new form of company – the “Simple Joint Stock Company” (“SJSC”). The SJSC will be able to accommodate the entrepreneurship and venture capital rising demands. It is a flexible corporate entity, which can be established by one or more persons, issue several classes of shares, can be managed by one or more managers, or board of directors. It may also act as a vehicle for investments and enable non-profit companies to enter the private sector.
In addition, article 11 of the New Law allows for the introduction of binding (provided it does not conflict with the law, articles or the bylaws) joint venture agreements and family charter in the company’s articles of association to regulate family owned businesses, their governance and administration policy, the employment of family members and the family business’ profits.
The SJSC will be able to accommodate the entrepreneurship and venture capital rising demands. It is a flexible corporate entity, which can be established by one or more persons, issue several classes of shares, can be managed by one or more managers, or board of directors.
In summary, the New Law increases business sustainability, encourages investments in small and micro companies, simplifies procedures and regulatory requirements, increases market diversity by introducing new company types, protects shareholders and reduces potential disputes.
Please contact our Saudi based corporate team for any queries and we would be delighted to assist.
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