Riyadh – Mubasher: Saudi Arabia’s cabinet has approved a bankruptcy law in a bid to diversify the kingdom’s oil-dependent economy and attract more investors, sources told Reuters.
The world's top oil exporter has begun updating the outdated laws as part of an intensive drive to adjust its economy and create an investor-friendly climate.
The new law regulates bankruptcy procedures such as liquidation for individual investors, domestic and global firms, as well as settlements, Reuters said.
King Salman bin Abdulaziz endorsed bankruptcy law after the cabinet’s approval, the news agency added, citing sources as saying.
This law is expected to settle the existing debt disputes such as the debt trouble, which Ahmad Hamad Algosaibi and Brothers (AHAB) faced.
“The timing [of the fresh law] is excellent,” managing partner at Al Suwaiket and Al Busaies law firm Bader al-Busaies stated.
“The new law is an alternative solution - the international practice has proven that insolvency law offers a good solution for companies,” Al-Busaies added.
In December 2017, the Kingdom’s Shura Council, a top advisory body to the government, approved bankruptcy draft law, which consisted of 231 articles in 17 chapters.
