Saudi bankruptcy law to aid struggling businesses - The National

Saudi bankruptcy law to aid struggling businesses  - The National:

Saudi Arabia’s landmark bankruptcy law, which is now being implemented, will strengthen the kingdom’s business environment by helping cash-strapped firms restructure and incentivising more foreign investment.

“The new law will protect companies and allow them to show the reality of their financial situation, ultimately improving business transparency,” Mazen Al Sudairi, head of research at Al Rahji Capital, told The National.

Saudi Arabia is following in the footsteps of the UAE, which approved a bankruptcy law in 2016 to better deal with corporate insolvencies. Previously, neither country had a single law setting out procedures for businesses that ran into financial trouble, but the issue has become more pressing after years of economic slowdown in the Middle East and worldwide.