Saudi Arabia launched on Monday its first administrative enforcement court with jurisdiction over government entities and officials in a bid to boost investor confidence, a Saudi judicial organisation said.
The move follows the enactment of a civil transactions law last month, part of wider judicial reforms initiated by de facto ruler Crown Prince Mohammed Bin Salman and aimed at modernising the economy and reducing reliance on oil exports.
The civil transactions law was in effect the country's first civil code, replacing an unwritten system where judges would have full discretion ruling on commercial disputes on the basis of Islamic law.
The new court and the law aim to boost the confidence of foreign investors weighing whether to do business with the country, where the legal system has long been seen as opaque.
The administrative court will receive complaints from local and foreign investors against government institutions, the Board of Grievances, a judicial body directly associated with the Saudi king, said in a statement.
The court will prioritise resolving issues by mediation but will also have executive power against government entities and officials, it added.
Riyadh in 2021 set a target of reaching $100 billion in foreign direct investment by 2030, which appears far off with most recent data showing just under $33 billion in inflows in 2022.
No comments:
Post a Comment