The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:
Capital Market Authority Approves Amendments of the Regulations for Foreign Investment in Securities
Capital Market Authority Board issues a decree dated to 26th May, 2025 (18-11-1446H) for approving amendments of the regulations for foreign investment in securities, according to the capital market law issued by the royal bylaw number (M/ 30), dated to 2-6-1424H.
The decree includes: Enlarging the scope of foreign investment by permitting foreign natural and legal identities, whether they are residents or non-residents to invest in the presented securities, debt instruments and investment funds, according to the compliance with the related regulations.
Limitations on the ownership percentage:
No non-resident foreign investor- with the exception of the strategic investor- shall own more than (10%) of shares in any transferable exporter or debt instruments.
Total properties of foreign investors- of all types- shall not exceed (49%) ofshares in any registered exporter.
Exempting the foreign strategic investor, who keeps shares for not less than two years
Regulating Exchange Agreements:
The regulations permit capital market foundations to make exchange agreements with other foreign parties, that allows non-resident foreign investors to have the economic interests of enlisted securities, while there are accurate conditions related to voting, separating customer capitals, and anti-money laundry conditions.
Discharging and Grievance:
The regulations permit the authority to exempt any person from the applicability of its regulations whether entirely or partly. They permit grievance from any decree of action taken by the authorities according to those regulations, at the concerned committee.
Transparency and disclosure:
The regulations oblige the market to publish regular statistics about the foreign ownership and strategic investors, in addition to the regulations imposed on registered companies at its website.
Approving those amendments is a step of the capital market authority efforts to reinforce Saudi market attraction of foreign investments, upgrading competence and market depth, and supporting its stability according to the KSA vision 2030 that aims at making the Saudi Capital Market a national and international financial center.
Ministry of Commerce points out the steps and the conditions for electronic reservation of a trade name through Saudi Business Center Website
Ministry of commerce announces the mechanism and the steps of reserving a trade name for commercial establishments electronically through the website of Saudi Business Center, asserting a group of conditions and regulations which should be considered.
The ministry points out that the conditions of applying for the service include the following:
The applicant shouldn’t be younger than 18 years.
The applicant should be the beneficiary of the trade name or its representative.
They point out that the trade name should be formed of Arabic or Arabized utterances or of Arabic letters or numbers, or a mixture of them. In a case of English names, they should be formed of utterances, letters or numbers, of a mixture of them.
The ministry adds that the regulations necessitate the following:
The trade name shouldn’t contradict the public system or ethics.
It shouldn’t be misleading or prohibited.
It shouldn’t be similar to a reserved or registered trade name at the commercial register for any activity.
It shouldn’t be similar to any famous international or registered name or trademark in the KSA.
The ministry of commerce asserts undertaking with all conditions and regulations of the commercial laws at choosing and registering a trade name.
Legal Information:
Reasons for terminating contracts according to the law:
misleading: hiding a defect which the purchaser cannot discover before contracting, for example: hiding a defect of the sold product that results in a damage.
Deceit: selling a product with a deceiving appearance, for example: selling a product without unknown result (selling an animal embargo or fish in water)
Injustice: greater increase or decrease in the cost that violates justice, for example: selling goods which equal thousands opposite a decrease price.
Defect: the seller hides a thing in the goods, while in a case the purchaser recognizes it, shall not purchase it, for example: hiding a defect in a car or a property.
Ignorance: ignorance of the sold item, the cost or the sale contract, for example: selling a bird in the sky or fish in water.
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