Saudi Arabia recently published a new Bankruptcy Law. This is the latest development of a string of reforms under Vision 2030 to further encourage the participation of foreign and domestic investors by structuring the business legal framework. This article provides a general analysis of the new bankruptcy law and its implications for businesses operating in the Kingdom.
A temporary Scheme was introduced in March 2009
The purpose of the temporary Scheme is to ensure that former employees of insolvent businesses receive a reasonable amount of compensation promptly, where they are owed money by their former employers.
In a White Paper published on 03 December 2009 the States proposed to introduce a permanent Scheme. The deadline for respondents to submit their views was Friday 05 February 2010