Saudi Shoura Council approves draft bankruptcy law

Reuters Images/Faisal Al Nasser
The draft bankruptcy law aims at regulating the bankruptcy procedures in Saudi Arabia
RIYADH — The Shoura Council on Monday approved the draft bankruptcy law, which aims at regulating the bankruptcy procedures in the Kingdom.

The law, which consists of 231 articles, covers bankruptcy procedures with regard to preventive settlement and financial restructuring, especially that of minor debtors, in addition to administrative settlement.

The law comprises 17 chapters consisting of general rules of bankruptcy committee, procedures for guarantees and clearance associated with financial transactions, right to object to rules and decisions, procedures for administrative settlement, financing, priority of debts, and special rules for the deceased debtors.

The draft law will be applicable to all persons involved in businesses or commercial activities in the Kingdom.

It will also applicable to non-Saudi commercial and vocational companies and other entities and organizations as well as investors.

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