THE ALIGNMENT OF SAUDI VISION 2030 BANKRUPTCY LAW WITH UNCITRAL MODEL LAW ON CROSS-BORDER INSOLVENCY (1997) AND ITS IMPLICATIONS FOR FOREIGN DIRECT INVESTMENT

Abstract

Saudi Arabia’s Vision 2030 seeks to diversify the nation’s economy by minimizing dependence on oil and enhancing its Foreign Direct Investment (FDI). However, for Saudi Arabia to achieve this objective its legal regime must align with international guidelines to promote investor confidence. Specifically, the Saudi Arabia’s new 2018 Bankruptcy Law should align with the UNCTRAL Model Law on Cross-Border Insolvency (MLCBI). This study seeks to examine the extent to which the legal reforms provided by Saudi Arabia’s new 2018 Bankruptcy Law aligns with UNCITRAL MLBI to foster predictability, transparency and stability for international investors. This dissertation utilizes legal doctrinal methods to provide an in-depth analysis of the two provisions and comparative legal research methods to compare them. The study reveals that although Saudi’s Bankruptcy Law incorporates some MLCBI principles like recognition and relief, some areas still need improvement such as the judicial capacity and creditors rights. As a recommendation, the study proposes improvement regarding clarity of ambiguous provisions, capacity building of legal professionals and continuous updates of the bankruptcy legal regime in the country to enhance the country’s competitiveness for FDI.