Article 9 of the Saudi Investment Law

This article gives the Ministry of Investment an exceptional power: to suspend any foreign investment to protect national security. It concerns foreign investment only, meaning the investment of someone who does not hold Saudi nationality under the definitions in Article 1.

The article does not leave this power unlimited, however; it limits it with three safeguards that apply together:

• The suspension decision must be based on objective grounds.
• It must be consistent with the Kingdom's obligations under the international agreements to which it is a party.
• It must be issued in accordance with the procedures set by the Implementing Regulations.

The article does not define "national security" and does not state the duration or effects of the suspension; for the details of the procedures, refer to the Implementing Regulations.

This power differs from the list of excluded activities in Article 8: the list specifies in advance the activities that are prohibited or restricted and requires approval to be sought before investing, whereas the suspension here may apply to any foreign investment whenever protecting national security requires it. Article 10 follows, which gives an investor who is a party to any dispute, including its disputes with the competent authority, the right to go to the competent court unless the parties agree otherwise.

Anyone whose investment is the subject of a suspension decision would do well to consult a lawyer who specializes in foreign investment and commercial matters to assess their position.