KSA discusses changes to bankruptcy laws

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JEDDAH: A series of workshops are being held in Saudi Arabia seeking public opinion on proposed changes in its bankruptcy laws.
The workshops coincide with the Ministry of Commerce and Investment’s (MCI) plans to overhaul the bankruptcy laws.
In one such workshop organized by the MCI and attended by specialists and representatives of government agencies on Thursday, there were presentations explaining the systems and regulations governing trade and investment.
The presenters introduced the bankruptcy system project and detailed the plan for modernizing the regulations governing trade and investment within the framework of the initiatives of the National Transformation Program (NTP) 2020 and the objectives of Vision 2030.
The workshop also intended to encourage the local and foreign investors to invest in the Saudi market and enhance their confidence in the credit and financial transactions.
The event started with a detailed audiovisual presentation of the bankruptcy system project and its general objectives and procedures, especially the financial reorganization, liquidation, and the procedures for small debtors as well as the project’s details.
The interactive workshop received enthusiastic participation with a number of opinions and suggestions put forward by the attendees.
Bader Al-Haddab, general supervisor of the Agency of Technical Affairs at the MoCI, explained the aims and objectives of the project, which include enhancing the status of the economy by reconsidering the projects that had defaulted, especially for financial reasons.
Such defaulting projects could be helped with by sorting out their financial difficulties so that they could continue to operate.
They could also choose liquidation if they desired so. This suggestion will preserve the rights of debtors and other stakeholders to enhance confidence in business and financial transactions.
The workshop was attended by representatives of the ministries and their departments related to finance, justice, energy, industry and mineral resources, economy and planning, environment, water, agriculture, culture, media, Bureau of Ombudsmen, Saudi Arabian Monetary Agency (SAMA), the Capital Market Authority, the General Authority for Investment and Organization for Standardization Metrology and Quality, and the Saudi Commission for Accredited Evaluators.
It will be recalled that the project of bankruptcy system has already gone through many stages.
One of the stages was done in cooperation with a specialized office in this field.
The office follows a specific methodology adopted to monitor the needs of traders and investors in the Kingdom and to analyze the financial difficulties, along with studying the best international practices in the field of bankruptcy. It is then that public opinions and suggestions are sought.
Maher Othman, the bankruptcy system project manager, explained that the bankruptcy system project has 320 articles, which detail the bankruptcy procedures.
This system gives priority to preventive settlement and financial reorganization.
The difficulties faced by the debtors are analyzed and then assistance given for enabling them to resume the business of trade as soon as possible.
The project takes into account the development of small and medium enterprises (SMEs) through simplifying their financial difficulties and encourage them to continue to pursue their trade and other economic activities.

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