Saudi Arabia Update: Expats to be Allowed to Manage Saudi-Owned Companies

Saudi Arabia’s Ministry of Commerce announced that expatriates would be allowed to manage Saudi-owned companies, local media reported. The announcement was made after the Ministry of Justice had revoked a previous ministerial decision stipulating that it is not permissible for an expatriate resident to manage a Saudi company or authorize him through a judicial order to act on behalf of a Saudi citizen.

A circular to this effect was issued by the Minister of Justice, who stated that the ministry received a request from the Minister of Commerce to annul the decision and further allow expatriates to run a national company.

The Minister of Commerce, who is also the chairman of the National Competitiveness Centre (Tayseer), stated that the Ministry of Commerce formed a committee to study the issue and concluded that there is no objection to appoint non-Saudis as managers of Saudi-owned companies and authorize expatriates to act on behalf of Saudis for running the companies, the circular stated.

By Hammad & Al-Mehdar, Saudi Arabia, a Transatlantic Law International Affiliated Firm. 

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