A new professional companies law has entered into force in Saudi Arabia and will have a direct effect on professional partnerships already existing in the Saudi Arabian market (such as those providing engineering consultancy and accounting services, to name a few) as well as on new entrants to the market. This update provides a brief insight into this development in the professional companies sphere...
Legislative History and Scope -
Saudi Arabian legislative bodies have been demonstrably active in recent years with respect to updating the Kingdom’s regulatory framework to help strengthen the rule of law, stimulating the economy and attracting foreign investment.
A Royal Decree was issued on 25 September 2019 approving the issuance of the new Professional Companies Law, and the Saudi Ministry of Commerce issued the Implementing Regulations of this new law on 23 April 2020 (together, the “New Professional Companies Law”) which marks a welcome development in the professional services field. The New Professional Companies Law has now entered into force and is in effect in the Kingdom of Saudi Arabia.
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