Saudi Gazette report

RIYADH — Abdul Majeed Al-Abdul Wahab, director-general of the companies’ laws and policies at the Ministry of Commerce, said that the new draft corporate law will pave the way for the establishment of more flexible types of companies.

Speaking during a television interview, he said that the new models of companies include simple joint-stock companies, which will have the characteristics of joint-stock companies featuring flexibility in raising capital or in issuing different types of shares.

He said that among the types of new companies in the law, if it is approved, is the reorganization of companies governed by shares, which includes two teams, one of which is a joint partner that is responsible for funds in person, and the other is a shareholder.

Abdul Wahab said that the new corporate law will be a strong contributor to strengthening the business environment and the value of companies and organizing their establishment and activities.

“The new law is being worked out, in cooperation with the Saudi Capital Market Authority, after monitoring the challenges and obstacles facing companies and economic establishments,” he said.

Abdul Wahab said that several workshops were held and that are aimed at drafting the new law through incorporating the best international practices, and these were presented to the concerned stakeholders to have their viewpoints and opinions that are an important factor in framing the new law. He said that the new law places among its broad goals the facilitation of regulatory measures and stimulating the growth of the entrepreneurial sector and the development of small and micro companies.