Saudi Arabia's Justice Ministry on Monday announced its first administrative enforcement court with jurisdiction over entities and officials in a bid to boost investor confidence.
The Move follows the enactment of a civil transaction law last month, part of a wider judicial reforms initiated by Crown Prince Mohammed bin Salman and aimed at modernizing the economy and reducing reliance on oil exports.
The civil transaction law was in effect the country's first civil code, replacing an unwritten system where judges would have full discretion of ruling on commercial disputes on the basis of Islamic law.
The new court and the law aim to boost the confidence of foreign investors weighing whether to do business with the country, where the legal system has long been seen as opaque.
The administrative court will receive complaints from local and foreign investors against government institutions, the justice ministry said in a statement.
The court will prioritize resolving issues by mediation but will also have executive power against government entities and officials, it added.
Riyadh in 2021 set a target of reaching $100 billion in foreign direct investment by 2030, which appears far off with most recent data showing just under $33 billion in inflows in 2022.
