Business Reforms in Saudi Arabia
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Starting a Business: Saudi Arabia made starting a business easier through the use of an online system that merges the name reservation and submission of the articles of association into one procedure. Saudi Arabia also improved the online payment system, removing the need to pay fees in person.
Registering Property: Saudi Arabia improved the efficiency of its land administration system by implementing an online platform to check for ownership and encumbrances and by streamlining the property registration process. Additionally, Saudi Arabia made registering property easier by improving the land administration system’s dispute resolution mechanisms.
Protecting Minority Investors: Saudi Arabia strengthened minority investor protections by increasing shareholder rights and role in major decisions, clarifying ownership and control structures, requiring greater corporate transparency and regulating the disclosure of transactions with interested parties.
Paying Taxes: Saudi Arabia made paying taxes by improving its online platforms used by taxpayers for filing and paying taxes.
Trading across Borders: Saudi Arabia reduced the time for documentary compliance for exports and imports by reducing the number of documents required for customs clearance.
Enforcing Contracts: Saudi Arabia made enforcing contracts easier by introducing an electronic case management system for the use of judges and lawyers.
Starting a Business: Saudi Arabia made starting a business easier by reducing the time to notarize a company's article of association.
Protecting Minority Investors: Saudi Arabia strengthened minority investor protections by strengthening ownership and control structures of companies and by increasing corporate transparency requirements.
Paying Taxes: Saudi Arabia made paying taxes more difficult by introducing a more complex income tax return.
Labor Market Regulation: Saudi Arabia increased the length of the notice period for redundancy dismissals.
Registering Property: Saudi Arabia made property transfers faster by introducing a new computerized system at the land registry.
Trading across Borders:
Getting Electricity: Saudi Arabia made getting electricity more expensive by increasing the connection fees.
Paying Taxes: Saudi Arabia made paying taxes easier for companies by introducing online filing and payment systems for social security contributions.
Enforcing Contracts: Saudi Arabia made enforcing contracts easier by expanding the computerization of its courts and introducing an electronic filing system.
Starting a Business: Saudi Arabia made starting a business easier by bringing together representatives from the Department of Zakat and Income Tax and the General Organization of Social Insurance at the Unified Center to register new companies with their agencies.
Dealing with Construction Permits: Saudi Arabia made dealing with construction permits easier for the second year in a row by introducing a new, streamlined process.
Getting Credit: An amendment to Saudi Arabia’s commercial lien law enhanced access to credit by making secured lending more flexible and allowing out-of-court enforcement in case of default.
Trading across Borders: Saudi Arabia reduced the time to import by launching a new container terminal at the Jeddah Islamic Port.
Resolving Insolvency: Saudi Arabia speeded up the insolvency process by providing earlier access to amicable settlements and putting time limits on the settlements to encourage creditors to participate.
Starting a Business: Saudi Arabia made starting a business easier by introducing a one-stop center at the Ministry of Commerce that merged registration procedures and simplified publication requirements.
Dealing with Construction Permits: Saudi Arabia made dealing with construction permits less time consuming by introducing a 1-day permitting procedure that enables builders to obtain a temporary building permit allowing them to begin construction after 1 day and a final building permit after 1 week.
Starting a Business: Saudi Arabia reduced the time and cost to start a business by eliminating non-value-added formalities.
Registering Property: Saudi Arabia made property registration faster and easier by adopting a comprehensive electronic system for registering title deeds.
Protecting Minority Investors: Saudi Arabia strengthened investor protections by prohibiting interested parties from voting on the approval of related-party transactions and by increasing sanctions against directors found liable for harm to a company resulting from a transaction in which they had a personal interest.
Resolving Insolvency: Saudi Arabia introduced strict deadlines for bankruptcy procedures, with the result that auctions of debtors’ assets now take place more quickly than before.
Starting a Business: Saudi Arabia made starting a business easier by eliminating the paid-in minimum capital requirement and speeding up company registration.
Getting Credit: Saudi Arabia’s private credit bureau launched a commercial credit bureau that issues reports on companies, including on their credit exposure.
Trading across Borders: Saudi Arabia made importing easier by abolishing the requirement for a consular certificate, allowing the electronic transfer of data (and therefore eliminating the requirement for hard copies of documents) and improving the capacity of facilities in the port of Jeddah.