Saudi Shura Council approves bankruptcy law

Saudi Arabia’s Shura Council approved today the Kingdom’s new bankruptcy law, which allows creditors and debtors to enter into agreements to schedule the payment of debts.

The bill, which consists of 17 chapters and 321 articles, regulates bankruptcy procedures such as preventive settlement proposals, financial restructuring, and liquidation.

In September this year, Saudi Arabia’s Minister of Commerce and Investment Majid al-Qusaibi told state-owned Al Arabiya that the Kingdom will begin implementing the new bankruptcy law in early 2018, as part of wider efforts to attract foreign investment and encourage activity in the private sector.