What are the recent reforms to Saudi Arabia's private international law in dispute resolution mechanisms, and how have these reforms improved the country’s competitiveness in attracting foreign direct investment?

Abstract

This paper explores the recent reforms Saudi Arabia has made to its international private law, focusing on dispute resolution mechanisms and their impact on evaluating the country’s ability to attracting Foreign Direct Investment (FDI). Saudi Arabia has achieved significant legal transformations as a part of its 2030 vision agenda, which included the introduction of a new Investment Law that creates a more favorable environment for investors. In this context, the country’s ratification of the Singapore Convention on Mediation was an essential step, indicating Saudi Arabia’s commitment to adopting international best practices in regard to dispute resolution. Furthermore, the paper critically assesses the implications of these legal reforms on key factors that influence Foreign Direct Investment, including cost, confidentiality and cultural familiarity, while also evaluating investor satisfaction levels. Taking into consideration foreign investors confidence in Saudi Arabia’s legal system, who prioritize reliable and transparent legal frameworks. Additionally, exploring the evolving role of Saudi arbitration practices, by focusing on dispute resolution in international business contexts. The paper presents a comprehensive analysis of how the recent reforms have reshaped the legal landscape for resolving business disputes in Saudi Arabia, balancing the country’s traditional legal principles with the demands of global investors. For instance, significant improvements to corporate governance have been established by the new Companies Law, which has increased flexibiliy in corporate structure while ensuring comliance to modern legal requrements. This law is a significant advancement for private international law since it offers a more transparent framework for both local and foreign commercial operations. By using case studies and empirical data, the research assesses how effectively these reforms address investor concerns and propose actionable recommendations for further improvements. The goal is to ensure that Saudi Arabia’s legal system develops a more competitive, transparent and efficient environment for both international and local businesses.