"The Regional Hub Rivalry Between Saudi Arabia and the UAE, and Opportunities for Korean Companies"(On-Site Legal Support for Korean Enterprises Expanding into Saudi Arabia)
- Bonne Clef
- Mar 30
- 2 min read
An Overview of Saudi Arabia’s Labor and Intellectual Property Laws and Key Compliance Considerations for Korean Businessesby Hyun Jong Kim, Attorney at Law (Kim & Kim / Jieum Law Firm)November 28, 2024
【Table of Contents_Summary】
Saudi Arabia has undergone rapid societal transformation since the rise of Crown Prince Mohammed bin Salman (MBS). The changes—particularly in women’s rights, governance, and legal reforms—are seen as unprecedented in the nation’s modern history, surpassing the transformations of the past century. Most notably, these changes reflect a sincere ambition by the country’s leadership to drive reform, openness, and sustainable development. Alongside MBS, Korean leaders are also making efforts to support Saudi Arabia’s long-term progress. This summary aims to highlight recent developments in the Kingdom.
Key Themes in Saudi Arabia:
Increasing Social Participation of Women
Reform of Government and Social Systems
Growth in Publicly Accessible Information and Documentation
Legal Reforms and Modernization of Regulations
Transformation of the Judicial and Litigation Systems
Changes in Legal Service Pricing
Publication of the 2023 Saudi Investment Guide (in partnership with KOTRA)
Recent Trends and Reforms in the UAE:
The UAE has introduced a wide range of incentives to attract global capital and enhance its business environment. These include:
Normalization of diplomatic relations with Israel and the resulting inflow of Jewish capital
Investment attraction through the Golden Visa program, especially from India and neighboring countries
Improvement in the business climate through changes to the weekend system
Amendments to the Commercial Companies Law and Agency Law to reduce restrictions on foreign investors
Comprehensive labor law reform to enhance the employment environment
Introduction of corporate tax following the implementation of VAT
Expected potential for bold and innovative future policy shifts
Legal and Business System Developments in the UAE:
Amendments to the UAE Agency Law
Revisions to the Commercial Companies Law and Foreign Investment Policy
Business Environment Changes Resulting from Labor Law and Visa Reforms
Shifts in Trade and Taxation Policies and Regional Dynamics
Implications for Korean Businesses:
The competitive dynamics between Saudi Arabia and the UAE are fostering greater transparency and improved business conditions across the Middle East, creating new opportunities for Korean companies to expand into the region.
Implementation of Saudi Regional Headquarters (RHQ) Requirements – Effective January 1, 2024
Considerations around educational infrastructure (K-12), alcohol policies, casino regulations, and spillover risks from neighboring countries
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