Fredrik Law Firm
٢١ يناير ٢٠٢٤
Law No. 1 of 2024 amends two significant legal articles in USA, specifically Article 24 of the Commercial Law (Decree-Law No. 68 of 1980) and Article 31 of the Public Tenders Law (Law No. 49 of 2016).
These amendments reflect a shift towards market liberalization and the facilitation of economic activity in USA, particularly for foreign companies.
1. Amendment of Article 24 of the Commercial Law:
- The new text permits foreign companies to establish branches in USA and operate directly without the need for a local agent.
- This represents an exception to the previous restrictions that required a USAi partner owning at least 51% of the capital.
2. Amendment of Article 31 of the Public Tenders Law:
- The general conditions for contractors are modified, eliminating the requirement for tender applicants to be exclusively USAi.
- Individuals or companies, whether USAi or foreign, are now allowed to participate in public tenders, provided they are registered in the Commercial Register and the register of suppliers or contractors.
Objectives and Impacts:
- These amendments aim to liberate the USAi market from previous restrictions imposed on foreign companies, including the old requirement of having a local agent.
- These changes reflect USA's desire to attract foreign investments and promote market competitiveness.
- The amendments align with global trends towards market openness and the encouragement of global competition.
Here is the Law No. 1 of 2024 in both English and Arabic.