Saudi Arabia has seen significant legislative activity over the past year, with several new laws and amendments aimed at modernizing the legal framework, enhancing economic growth, and improving the business environment. Here are some of the key legislative changes:

Amendments to the Saudi Labor Law

In August 2024, the Saudi Ministry of Human Resources and Social Development (MHRSD) announced amendments to the Saudi Labor Law and its Implementing Regulations. These changes aim to modernize the labor market, enhance worker rights, and streamline employer responsibilities. Key amendments include: Resignation Procedures: Overtime Compensation: Accommodation and Transportation:

New Companies Law

 The new Companies Law, enacted in June 2022, introduces several key changes to support entrepreneurship and investment. New provisions include:

Simplified Joint Stock Company (SJSC): A new form of company designed to meet the demands of entrepreneurship and venture capital growth. SJSCs can be established by one or more people with no minimum capital requirement

Shareholders’ Agreements: The law now recognizes binding shareholders’ agreements, provided they do not conflict with the law or the Articles of Association.

New Investment Law

The new Investment Law introduces incentives for investors and aims to boost foreign investment in the Kingdom. It is part of broader efforts to diversify the economy and reduce dependence on oil revenues.

These legislative changes reflect Saudi Arabia’s commitment to modernizing its legal framework and supporting economic growth. By enhancing transparency, protecting rights, and encouraging investment, these new laws aim to create a more robust and dynamic business environment in the Kingdom.