Saudi Arabia approves bankruptcy law to boost reforms: report

Saudi Arabia’s cabinet has approved a bankruptcy law as part of its efforts to attract foreign investment and encourage private sector activity, Reuters reported on Sunday, citing informed sources.

King Salman endorsed the bankruptcy law after the cabinet approved it, the news agency said.

The move is expected to strengthen the Kingdom’s efforts to create an investor-friendly climate for its economic diversification plans, which include the initial public offering (IPO) of state-owned Saudi Aramco.

In December 2017, the Shura Council had approved a draft of the law, which consisted of 231 articles in 17 chapters. The legislation aims to regulate bankruptcy procedures such as settlements and liquidation, for individuals, local and foreign companies.