Saudi Arabia: bankruptcy legislation passed in cabinet

(MENAFN) Sources have revealed Saudi cabinet to have passed bankruptcy legislation, allowing more investors to be lured.

Saudi Arabia is seeking reforms in its economy, aiming to establish an environment well suited for investors.

Managing partner at Al Suwaiket and Al Busaies law firm Bader al-Busaies emphasized how "the timing is excellent".

He explained "lots of companies are facing financial difficulties. Before it was either liquidation or stakeholders had to inject money. The new law is an alternative solution - the international practice has proven that insolvency law offers a good solution for companies."