By SIMON CONSTABLE
Saudi Arabia is changing its bankruptcy laws in a move that should help the country diversify its economy away from oil.
The change, which came from King Salman in February, will undoubtedly help boost much-needed foreign investment in the kingdom. That’s because, up until now, there has not been a satisfactory way to deal with an insolvent corporation. That’s a significant disincentive to foreign and domestic business people to set up shop in the country.
“The lack of bankruptcy legislation has acted as a key deterrent to entrepreneurs in Saudi Arabia as well as to the willingness of local banks to provide financing to business start-ups,” states a recent report from Capital Economics. Read more here.
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