A Critical Comparative Study of the Investment Law in Saudi Arabia and Egypt
Date
2023-11-21
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Saudi Digital Library
Abstract
In the backdrop of evolving global markets, states have increasingly focused on
enhancing their foreign investment climate to attract new business prospects and foster
economic growth. Over the years, Egypt and Saudi Arabia have demonstrated their
strong commitment to economic diversification and willingness to reform their
investment regime to meet international investors' growing expectations and
requirements.
This research paper offers a comprehensive comparative analysis of the investment
frameworks in Saudi Arabia and Egypt. In doing so, the research highlights the
historical evolution of the investment regimes within these two countries. A crucial
aspect of this investigation is the examination of the compatibility of Sharia law with
contemporary business requirements. As it will be shown, both states have adeptly
navigated the integration of Sharia law into modern legal structures and have devised
effective, fair, and transparent legal systems.
Furthermore, the research explores Saudi and Egyptian efforts to create favourable
investment opportunities. It will be shown that Egypt is more liberal and open to
investors than Saudi Arabia. However, Saudi Arabia has been able to codify its
investment framework better and provide investors with full information about
investment opportunities and incentives openly and transparently.
The findings of this study contribute to a broader understanding of effective strategies
for attracting foreign investment and providing practical guidance for states seeking to
revitalise their investment regimes in line with contemporary economic dynamics.
Description
Creating a favourable investment climate has been a primary objective of many developing states and emergent markets as many countries have sought to reform their investment laws to provide sufficient safeguards to international investors. However, investment laws should not be studied in isolation, instead, they must be examined from a comparative perspective to identify which places have been able to develop a more investment-friendly regime. Although the investment law of any state is primarily shaped by its legal culture, traditions and practice, economic factors as well as the experience of other states can provide an important impetus for investment law reform. The objective of this project is to critically analyse and compare the Saudi Arabian and the Egyptian investment law to identify their relative strengths and limitations and see what lessons each country can learn from the experience of the other. An analysis of Saudi Arabian and Egyptian investment law is more necessary than ever as both countries are struggling to attract sufficient investments in times of economic stagnation and rising inflation. Studying Saudi Arabian and Egyptian law from a comparative perspective will enable the researcher not only to discover the best approaches for FDI regulation, but also to explore how well each state is adhering to the commitment it has undertaken in its international investment treaties and how the dispute between the host states and the investor has been settled.
Keywords
Investment Law, Critical, Comparative Study, Saudi Arabia, Egypt