BANKRUPTCY LAW IN SAUDI ARABIA
THE NEW BANKRUPTCY LAW IN SAUDI ARABIA
The Shoura Council approved the draft bankruptcy law, which aims at regulating the bankruptcy procedures in the Kingdom.
The law, which consists of 231 articles, covers bankruptcy procedures with regard to preventive settlement and financial restructuring, especially that of minor debtors, in addition to administrative settlement.
The law comprises 17 chapters consisting of general rules of bankruptcy committee, procedures for guarantees and clearance associated with financial transactions, right to object to rules and decisions, procedures for administrative settlement, financing, priority of debts, and special rules for the deceased debtors.
The draft law will be applicable to all persons involved in businesses or commercial activities in the Kingdom.
It will also applicable to non-Saudi commercial and vocational companies and other entities and organizations as well as investors.
Yahya Al-Samaan, assistant president of the council, said that the session approved the draft technology transfer law. The law, which consists of 23 articles, aims at keeping pace with the highly advanced scientific and technological developments in various economic fields, strengthening the Kingdom’s capabilities and enhancing the efficiency of the Kingdom’s technological base, building national capabilities and resources that are essential in managing, using and developing technology, and possessing intellectual property associated with it, in addition to diversifying sources of income and promoting spirit of innovation and development.
The draft law also aims to facilitate, motivate, encourage, support, and provide training and consultancy to government agencies in transferring technologies, needed by the Kingdom, to government entities based on their five-year and long-term strategic plans. It further envisages giving necessary guidance to the private sector.
The council also approved the draft hydrocarbon law and draft concession agreement between the government of Saudi Arabia and the Saudi Aramco.