DUBAI (Reuters) - Saudi Arabia's Shura Council, a top advisory body to the government, has approved a draft bankruptcy law in a step towards modernising the economy and boosting growth in the private sector, a government statement said on Wednesday.
The draft law, consisting of 231 articles in 17 chapters, regulates bankruptcy procedures such as settlements and liquidation, for individuals as well as local and foreign companies, the statement said.
It did not say when the law would be approved by the cabinet and promulgated, but Minister of Commerce and Investment Majid bin Abdullah al-Qasabi said in September that it was expected to take effect by the end of the first quarter of 2018.
Under current legislation there is no easy way to wind up the activities of indebted companies in Saudi Arabia, so the new law could help with government plans to restructure the economy and make it more attractive to foreign investors.
The government is also working on new laws covering commercial mortgages and commercial franchising, it said.
(Reporting by Andrew Torchia; Editing by Matthe Mpoke Bigg)
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