Saudi Arabia is taking a significant step toward improving its investment landscape by planning the establishment of specialized investment courts. This initiative aims to safeguard investors’ rights, streamline judicial efficiency, and support the Kingdom’s Vision 2030 objectives of diversifying the economy and achieving sustainable development.
The Ministry of Investment, in collaboration with the Federation of Saudi Chambers, conducted a comprehensive survey inviting key government entities and private sector players to provide feedback on creating investment courts.
Objectives of the Investment Courts
The establishment of these courts is designed to enhance the judicial system to meet global standards, positioning Saudi Arabia as a leading investment destination. The main goals include:
- Faster resolution of investment disputes: Ensuring quick and fair settlements for investor-related cases.
- Building trust in the judicial system: Introducing advanced legal mechanisms that protect investors’ rights and enhance Saudi Arabia’s reputation as a secure investment hub.
- Modernizing investment laws: Aligning legal frameworks with international best practices to boost economic development.
Expected Impact on Investors
The specialized courts aim to:
- Reduce the time required for case resolution.
- Enhance transparency and fairness in handling disputes.
- Support strategic projects by providing a secure legal environment.
Estimated time for implementation of new investment courts
The courts will be introduced gradually through a phased plan:
- Phase 1: Conducting legal studies and analyzing judicial needs across regions.
- Phase 2: Training judges and preparing them for investment-related cases.
The first investment court is expected to launch by the end of 2025, strategically located in key cities like Riyadh, Jeddah, and the Eastern Province.
Future Vision for the New Investment Courts Plan
This project represents a strategic step towards achieving judicial and investment leadership regionally and internationally. With the establishment of investment courts, the Kingdom is moving towards providing an integrated model that enhances the business environment and places it at the forefront of the most preferred investment destinations globally.
The investment courts are expected to play a major role in attracting new investments in sectors such as renewable energy, technology, and tourism. For example, the advanced judicial system will contribute to enhancing the confidence of global technology companies in investing in the Saudi market.
The courts will also support major strategic projects, such as the “NEOM” and “Red Sea” projects, by providing a safe and effective legal environment.
The Minister of Investment confirmed that the establishment of investment courts reflects the Kingdom’s commitment to enhancing the business environment and supporting investors. He added: “With the establishment of these courts, we will witness a qualitative shift in the level of legal services provided to investors, which guarantees their rights and enhances confidence in the judicial system.”
According to data from the Ministry of Investment, the Kingdom deals with hundreds of investment disputes annually, with cases currently taking an average of 12 months to adjudicate. Investment courts are expected to reduce this time by 50%.
Leveraging International Expertise
Saudi Arabia is collaborating with global leaders, such as the International Arbitration Center in Paris and Singapore’s commercial courts, to adopt best practices. Advanced technologies like digital case management, e-archiving, and AI tools will streamline case processing and improve efficiency.
How does Batic Legal Consulting assist you with investment courts?
Batic Legal Consulting offers comprehensive support to help investors navigate the new specialized courts effectively. Our team of experts in investment law ensures you understand the new regulations, expedite dispute resolutions, and protect your rights as a local or international investor.
Whether you need legal advice for launching a project or strong representation in court, Batic delivers tailored legal solutions to support your investment journey in Saudi Arabia.
How will investment courts benefit investors?
They provide a dedicated, efficient legal environment that safeguards investor rights and expedites dispute resolution.
Will these courts serve all types of investors?
Yes, they will be accessible to both local and international investors, regardless of the scale of their investments.
What new mechanisms will the courts implement?
The courts will use electronic hearings, digital case submissions, and specialized teams for complex disputes.
Will there be additional fees for using these courts?
Moderate fees will be applied, designed to cover administrative costs without burdening investors.
Saudi Arabia’s plan to establish specialized investment courts reflects its commitment to fostering a robust, investor-friendly legal environment. By accelerating judicial processes, updating investment laws, and enhancing international collaboration, the Kingdom strengthens its position as a preferred global investment destination.
This visionary project aligns with Saudi Arabia’s efforts to promote economic growth, protect investor interests, and ensure sustainable development in the framework of Vision 2030.
Authors
Batic Law firm
Batic Law Firm is one of the leading legal service providers in Saudi Arabia, specializing in business formation, compliance, inheritance cases, litigation, and policies. Batic offers specialized legal consultations to assist clients in navigating complex legal systems, ensuring exceptional support for both local and international businesses.