The Role of the Legal Frameworks in Attracting Foreign Investments: The Case of Saudi Arabia

Abstract

Given the lack of regulatory studies on investment in Saudi Arabia and the recent adoption of the National Investment Strategy, the paper provides a comprehensive high-level assessment of the legal framewor¬¬k governing foreign investment in Saudi Arabia and its effectiveness in achieving its policy goals as a competitive regime. The purpose of the paper is to identify the legal framework that governs foreign investments in Saudi Arabia, under both a comparative lens and a policy-oriented one, while highlighting some of the most essential challenges facing foreign investors. Methods: The approach adopted describes and analyses the legal framework governing foreign investment in Saudi Arabia under the general policies and goals of Vision 2030. Additionally, where appropriate, a brief comparison to the legal framework governing foreign investment in other jurisdictions is presented to provide an alternative approach to how similar issues are handled under a reputable regime. Results and Conclusions: The National Investment Strategy issued in October 2022, the Investment Principles and Policies, and recent legislative reforms represent a major accomplishment and advancement for the Kingdom's investment regime. More importantly, the legal framework for foreign investment needs to be looked into to see if it is in line with Saudi Arabia's policies and goals and if it follows the structure of a modern investment framework by giving investors a regime that is effective, predictable, and reliable.