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SMART POLICY- The Administrative Enforcement Court is officially in session: The Kingdom launched yesterday its first Administrative Enforcement Court in Riyadh in a bid to further boost investor confidence, a statement by the Board of Grievances — which is directly associated with the King — read yesterday.
How it works: The court will take up disputes between local and foreign investors who find themselves at odds with government institutions. It will have jurisdiction over government institutions and will have the power to hand down fines and prison terms to individuals who fail to abide by its rulings.
The launch of the court comes weeks after the Civil Transactions Law (CTL) went into effect in December. The law is the first local written legal code meant to replace a system in which judges had full discretion in ruling on business disputes on a case-by-case basis according to their own interpretation of shariah.
In context: The move comes as more international companies invest here — and as those seeking government contracts move their regional headquarters in town. It comes as the government looks to bring in USD 100 bn in foreign direct investment by 2030.
