PIF is Saudi Arabia's sovereign wealth fund and ranks among the largest globally. It drives economic diversification and helps to grow the strategic sectors in Vision 2030. 

The NTP is a series of projects that aim to achieve Vision 2030. The programme includes empowering the private sector, improving government processes and developing economic partnerships. 

Led by The National Centre for Privatisation & PPP (NCP), the Privatisation programme is focused on strengthening the private sector by providing access to government assets and streamlining service delivery. 

This programme modernises the financial landscape in Saudi Arabia by updating laws and regulations for the financial sector, including banking, insurance, investment, and stock and debt markets. 

Provides a clear, predictable, consistent, and transparent business climate in Saudi Arabia. 

Originally, 'good faith' in dealing is accepted to be a Shariah principle from the Sharia law. The Civil Transactions Law means that 'good faith' is a codified principle under Article 95 (1).

Handles issues related to family and rights granted to women during marriage and after divorce, which have been debated in the past based on Sharia interpretations.

Both are also enforced by applying Sharia principles. The codification of Law of Evidence meant having clear legal principles covering civil and commercial transactions which are relevant to today’s business world.

For example, the law permits use of digital evidence in courts which was a concept that did not exist in Sharia.

The Foreign Investment Law regulates foreign investment hosted in Saudi Arabia, including conditions, procedures, and guarantees. The law emphasises respect for private property, as it states that investments may not be confiscated except by a court ruling or expropriated except for the public interest in return for fair compensation.

To increase efficiency, a one-stop shop was established at MISA to have it operate as a unified window to obtain all necessary licenses and permits for the foreign investor to start investment activities.

Regulators: MISA and The Real Estate General Authority

Foreign-owned companies may own or lease properties in Saudi Arabia for the purposes of their activities (subject to necessary approvals).

Lease agreements must be registered on the Ejar platform for documentation and enforcement purposes.

Regulators: The Saudi Industrial Development Fund (SIDF) and MISA

Depending on the relevant project, foreign investors may apply for a loan from SIDF. Loans from the SIDF typically contain more beneficial terms than loans from commercial banks.

The Saudi government offers subsides for specific projects. These subsidies are administered by MISA.

Regulators: The Ministry of Human Resources and Social Development (MHRSD)

Companies must employ a requisite percentage of Saudi employees (Saudization).

Saudization requirements vary depending on the activities of the company and the company size.

Certain positions in companies are reserved for Saudi nationals (HR positions, clerks, receptionists, security guards, government relations officers).

Before recruiting any foreign employees, companies in Saudi Arabia need approval from the MHRSD, including a work permit for the relevant expat.

Saudization non-compliant companies will be subject to penalties, including non-renewal of expat work permits and rejection of issuance of new work permits.

A new Data Protection Law was introduced that restricts companies unsolicited electronic marketing tactics. 

Regulators: The Zakat, Tax and Customs Authority (ZATCA)

Commercial activities in Saudi Arabia are subject to various taxes, including VAT (15%), corporate income tax (20%), and withholding tax (5-20% in relation to any payments that leave KSA).

Saudi nationals do not pay corporate income tax but do pay Zakat (religious obligation to give to charitable causes).

Regulator: Local Courts and The Saudi Center for Commercial Arbitration (SCCA)

Saudi Arabia is a signatory to The New York Convention and other international treaties.

Enforcement courts often rejected the enforcement of international arbitral awards on public policy grounds in the past, but this has improved significantly.

Saudi Arabia established the SCCA in 2014 under a Royal Decree. SCCA offers similar advantages to those offered in international arbitration centres.

As the SCCA is a Saudi Arabian institution, it is probably fair to assume that arbitral awards granted under the SCCA Arbitration Rules have better chances of being enforceable in KSA than international arbitral awards.