On Monday, Saudi Arabia’s Justice Ministry declared the establishment of its first administrative enforcement court with jurisdiction over government entities and officials, marking a significant step towards enhancing investors’ confidence. Crown Prince Mohammed Bin Salman implemented it as part of a broader judicial reform. It will aim at modernising the nation’s economic condition and reducing its dependency on oil exports.
Furthermore, the recent enactment of civil law will be a key component of these reforms. Saudi’s first civil code replaced the unwritten system that allowed judges to decide commercial disputes based on Islamic law without any guidelines. The newly established administrative court and the civil transaction law will provide transparency in the legal system. The strategic move was particularly made to attract foreign investors who are considering business engagement in Saudi Arabia. It will allow local and foreign investors to file complaints in the administrative court against government entities and officials. In 2021, Riyadh set the goal of reaching $100 billion in FDI by 2030, but the most recent data show just under $33 billion in inflow. However, with the recent reforms, Saudi Arabia aims to boost the legal framework for better investors.
