Article 16 of the Saudi Investment Law

المادة 16 من نظام الاستثمار

The article sets the law's entry into force 180 days after its publication in the Official Gazette, and repeals the previous Foreign Investment Law and any provisions that conflict with it.

Official text (Arabic)

This article has not been amended since the law was issued.

يُعمل بالنظام بمضي (مائة وثمانين) يومًا من تاريخ نشره في الجريدة الرسمية، ويُلغِي نظام الاستثمار الأجنبي الصادر بالمرسوم الملكي رقم (م / 1) وتاريخ 5 / 1 / 1421ه، كما يُلغِي ما يتعارض معه من أحكام.

This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers

Article 16 explained in plain English

This article contains two basic provisions:

First – the date of entry into force: the Investment Law takes effect after 180 days from the date of its publication in the Official Gazette. The law does not apply as soon as it is published, but after this period, which allows time to prepare for its application.

Second – repeal:

The law repeals the Foreign Investment Law issued by Royal Decree No. M/1 dated 5/1/1421 AH.
It also repeals any provisions that conflict with it.

Note that the repealed law was specific to foreign investment, whereas the new law addresses the "investor" in both its local and foreign forms, under the definitions in Article 1.

This article works together with Article 15, which requires the Minister of Investment to issue the Implementing Regulations within 180 days of the law's publication, to take effect from the date the law comes into force, so that the law and its Implementing Regulations begin to apply together. The article does not state the publication date itself; to find it, refer to the issue of the Official Gazette in which the law was published.

Anyone with an existing investment who needs to know how the move from the previous law affects their position can consult a lawyer who specializes in foreign investment and commercial matters.

Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.

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