(MENAFN- Khaleej Times) Saudi Arabia's cabinet has approved a bankruptcy law, sources familiar with the matter said on Sunday, giving a boost to efforts to make the kingdom more enticing to investors.
The kingdom is embarking on an intensive drive to overhaul its economy as it seeks to create an investor-friendly climate to push through a multi-billion dollar pipeline of asset sales such as the initial public offering of Saudi Aramco, expected to be the world's largest public share sale.
"The timing is excellent," said Bader Al Busaies, managing partner at Al Suwaiket and Al Busaies law firm.
Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, endorsed the bankruptcy law after the cabinet approved it, the sources said, citing a document dated last week.
The Ministry of Commerce and Investment did not immediately respond to a request for comment, and it was not clear when the law would be promulgated and take effect.
Saudi Arabia's Shura Council, a top advisory body to the government, in December approved a draft of the law which consisted of 231 articles in 17 chapters. It regulated bankruptcy procedures such as settlements and liquidation, for individuals as well as local and foreign companies, according to a government statement at the time.
No details of the framework of the law have yet been released but an earlier draft version created a provision whereby approval of a debt restructuring deal could be achieved if at least two-thirds of creditors approved the plan.
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