Document background
The Investment Protection Agreement is a crucial legal instrument used in Saudi Arabia to facilitate and safeguard significant investments while ensuring compliance with local laws and Sharia principles. This document becomes necessary when foreign entities make substantial investments in Saudi Arabia, requiring formal protection of their rights and clear definition of obligations. It addresses key concerns such as investment security, profit repatriation, and dispute resolution mechanisms, while incorporating specific provisions required under Saudi law. The agreement is particularly relevant in the context of Saudi Arabia's Vision 2030 economic transformation program, which aims to attract foreign investment and diversify the economy. It provides a framework that balances investor protection with national interests, incorporating recent regulatory reforms and investment promotion initiatives.
