Innovative changes address company and investor concerns as Saudi Arabia moves to modernize its corporate legal regime.

On 9 November 2015, the Council of Ministers of the Kingdom of Saudi Arabia approved the long-awaited new Regulations for Companies (the New Companies Regulations), which significantly updates the law applicable to corporations in the Kingdom. The New Companies Regulations replace the previous Regulations for Companies (the Old Companies Regulations), and were published in the Official Gazette (Umm Al Qura) on 22/2/1437H (4 December 2015). The regulations will enter into force 150 days after the publication date, i.e., beginning of May 2016 (the Effective Date). In addition, all current companies will be required to comply with the New Companies Regulations within one year from the Effective Date, i.e., beginning of May 2017. The Ministry of Commerce and Industry (MoCI) will publish templates for the constitutional documents of each company type, and together with the Capital Market Authority (CMA), the rules for implementing the New Companies Regulations, prior to the Effective Date.