Saudi Arabia's proposed new insolvency law and commercial pledge law

Regulatory Update

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The pace and scale of current regulatory change in Saudi Arabia is remarkable. 2015 alone saw the long awaited Qualified Foreign Investors regulations open the Tadawul (Saudi stock market) to non GCC investors and the even longer awaited announcement of the new Companies Law, as well as a major overhaul of labour regulation.

This briefing focuses on two proposed reforms, details of which were announced in 2015, but neither of which have received the coverage they perhaps deserve, at least outside Saudi Arabia itself:

  • the policy paper published by the Ministry of Commerce and Industry (MOCI) in respect of a proposed new insolvency law for Saudi Arabia, and 
  • the draft new Commercial Pledge Law published by MOCI.