Here's a look at new ministerial committee to regulate foreign investments

The Kingdom of Saudi Arabia's flag

Saudi Arabia’s Cabinet approved last week the formation of a standing ministerial committee to regulate foreign investments and protect the sensitive economic sectors, the official gazette reported on Friday.

The committee will be chaired by the Minister of Investment, and its members will be the Minister of Commerce, Minister of Economy and Planning, Minister of Communications and Information Technology, Head of Local Content and Government Procurement Authority (LCGPA), Chairman of the CMA, in addition to other high-rank officials.

The committee will identify and update the sensitive and strategic sectors that directly or indirectly impact the public security or order. It will also set the maximum limit for the direct and indirect foreign ownership in the shares of Saudi companies operating in the sensitive or strategic sectors, or the convertible securities or instruments issued by those companies, in line with the applicable laws.

The committee will also finalize the regulations required for the settlement of foreign investors’ applications to own stakes or shares in the abovementioned companies, or in convertible securities or instruments, and take the necessary decision.

A list will be made to include the individual or corporate investors banned from investment in the Kingdom, due to public security considerations. The list will also be updated in cooperation with the competent authorities.

The committee and the Capital Market Authority (CMA) will also set the regulations and terms required for reviewing applications for investment in the listed securities, issued by the Saudi companies operating in the sensitive or strategic sectors if the required ownership will create a controlling stake in any company.