Article 4 of the Saudi Investment Law
المادة 4 من نظام الاستثمار
The article lists the investor's rights, such as equal treatment, fair treatment, no confiscation except by a final judgment and freedom to transfer funds, and requires authorities to observe them and the Ministry to provide information and services.
Official text (Arabic)
This article has not been amended since the law was issued.
1- دون إخلال بما تقضي به الأنظمة ذات العلاقة، يتمتع المستثمر بالحقوق الآتية:
أ- مساواته في التعامل مع المستثمرين الآخرين، والمساواة في التعامل بين المستثمر المحلي والأجنبي؛ وذلك في الظروف المماثلة.
ب- معاملته معاملة عادلة ومنصفة.
ج- عدم مصادرة استثماره كليًّا أو جزئيًّا إلا بحكم قضائي نهائي، وعدم نزع ملكيته بشكل مباشر أو غير مباشر؛ إلا للمصلحة العامة ووفقًا للإجراءات النظامية ومقابل تعويض عادل.
د- حرية تحويل أمواله داخل المملكة وخارجها دون تأخير -بما في ذلك على سبيل المثال لا الحصر تحويل عائدات استثماره وأرباحه وبيعه أو تصفيته- عبر القنوات النظامية باستخدام أي عملة معترف بها، والتصرف بها بأي وسيلة مشروعة أخرى.
هـ- حرية إدارة استثماره، والتصرف النظامي به، وتملك ما يلزم لتسيير أعماله.
و- حماية الملكية الفكرية والمعلومات التجارية السرية.
ز- تيسير إجراءاته الإدارية وتقديم الدعم والمساعدة اللازمة له من قبل الجهة المختصة.
2- على الجهة المختصة عند اتخاذ أي تدابير لتحقيق المصلحة العامة -بما في ذلك التدابير اللازمة للوفاء بالالتزامات الدولية للمملكة أو المحافظة على النظام العام أو لاعتبارات الأمن الوطني- مراعاة الحقوق المنصوص عليها في الفقرة (1) من هذه المادة.
3- توفر الوزارة للمستثمر -وفقًا لما تحدده اللائحة- أي معلومات أو بيانات إحصائية متاحة، وتقدم له الخدمات اللازمة لتسهيل أي إجراءات متعلقة باستثماره، وتسعى لمعالجة الشكاوى التي يتقدم بها، وفقًا لإجراءات واضحة وشفافة.
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 4 explained in plain English
This article is the core of the protection in the Investment Law. It applies to the local and the foreign investor alike, without prejudice to the provisions of the relevant laws. It has three paragraphs:
Paragraph 1 – the investor's rights:
- Equal treatment with other investors, and between local and foreign investors, in similar circumstances.
- Fair and equitable treatment.
- No confiscation of the investment, in whole or in part, except by a final court judgment, and no direct or indirect expropriation except for the public interest, in accordance with legal procedures and against fair compensation.
- Freedom to transfer funds within and outside the Kingdom without delay, including investment returns, profits and the proceeds of selling or liquidating the investment, through lawful channels and in any currency recognized by the Saudi Central Bank.
- Freedom to manage the investment, to dispose of it lawfully, and to own what is needed to run its business.
- Protection of intellectual property and confidential commercial information.
- Easier administrative procedures, and support and assistance from the competent authority.
Paragraph 2: when a competent authority takes measures in the public interest, such as fulfilling the Kingdom's international obligations, maintaining public order or for national security considerations, it must take these rights into account.
Paragraph 3: the Ministry of Investment provides the investor with the available information and statistical data as determined by the Implementing Regulations, provides the services needed to facilitate its procedures, and seeks to address its complaints through clear and transparent procedures.
This article complements the right to invest in Article 3, and Article 5 balances it with the investor's duty to comply with the Kingdom's laws. Anyone who believes one of these rights has been affected can consult a lawyer who specializes in foreign investment and commercial matters.
Practical example
A foreign investor owns a company in Riyadh that has made annual profits and wants to transfer part of them to their home country. The article guarantees freedom to transfer profits outside the Kingdom without delay, provided this is done through lawful channels and in a currency recognized by the Saudi Central Bank.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 4 of Investment Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Administrative Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Administrative Law (Board of Grievances) lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Active contributor
Unwan Law Firm
Frequently asked questions about Article 4 of the Saudi Investment Law
Can a foreign investor transfer profits out of Saudi Arabia?
Yes. The article guarantees freedom to transfer funds within and outside the Kingdom without delay, including returns, profits and the proceeds of a sale or liquidation, through lawful channels and in any recognized currency.
Can an investor's investment be confiscated?
It cannot be confiscated in whole or in part except by a final court judgment, and it cannot be expropriated except for the public interest, in accordance with legal procedures and against fair compensation.
Is a foreign investor treated like a Saudi?
The article provides for equal treatment of local and foreign investors in similar circumstances, without prejudice to the provisions of the relevant laws.
Can an investor file a complaint with the Ministry of Investment?
Yes. The Ministry seeks to address the complaints an investor submits through clear and transparent procedures.
More articles on Investor Rights and Freedom to Invest
- Article 2
The article explains that the Investment Law aims to strengthen the competitiveness of the investment environment, support economic development and create jobs through an attractive investment climate.
يهدف النظام إلى تطوير وتعزيز تنافسية البيئة الاستثمارية في المملكة والمساهمة في التنمية الاقتصادية وخلق الفرص الوظيفية عن طريق توفير مناخ استثماري جاذب للاستثما
- Article 3
The article establishes the right of local and foreign investors to invest in any sector or activity open to investment, subject to Articles 8 and 9 and the relevant laws.
دون إخلال بأحكام المادتين (الثامنة) و(التاسعة) من النظام، وما تقضي به الأنظمة ذات العلاقة، يحق للمستثمر الاستثمار في أي قطاع أو نشاط متاح للاستثمار.
- Article 5
The article requires every investor to comply with all laws and legislation in the Kingdom and with the Kingdom's obligations under the international agreements to which it is a party.
يلتزم المستثمر بالتقيد بكافة الأنظمة والتشريعات في المملكة، وبالتزاماتها بموجب الاتفاقيات الدولية التي تكون طرفًا فيها.
- Article 6
The article provides that investment incentives are granted by the competent authority according to objective, specific and fair eligibility criteria, and refers the provisions for implementing this to the Implementing Regulations.
دون إخلال بما تقضي به الأنظمة ذات العلاقة، يكون منح المحفزات الاستثمارية للمستثمر من الجهة المختصة وفقًا لمعايير استحقاق موضوعية محددة وعادلة، وتحدد اللائحة الأ
- Article 14
The article provides that the Investment Law does not prejudice the laws on specific economic activities or special economic zones, while the investor keeps a minimum of the rights set out in the law.
لا تخل أحكام النظام بالأنظمة الخاصة بالجهات الأخرى التي تسري على أنشطة اقتصادية محدَّدة، أو المناطق الاقتصادية الخاصة في المملكة، على أن يتمتع المستثمر بحد أدنى
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.