Signing of an investment protection agreement with Saudi Arabia

The investment protection agreement provides safeguards against political risks that might affect Swiss investments in Saudi Arabia, and vice versa. The agreement protects investors against possible discriminatory measures by the state and unlawful expropriation, and guarantees the free transfer of investment payments. The dispute resolution procedure allows investors to refer any disputes that may arise under the agreement to an international arbitration tribunal. Furthermore, special provisions relating to state regulatory powers, corporate social responsibility and anti-corruption measures help to reconcile investment protection objectives with those of sustainable development. The agreement fills the legal vacuum created by Saudi Arabia’s termination of the previous agreement, which ceased to be in force on 9 August 2025.

With foreign direct investments exceeding CHF 1.34 trillion, Switzerland ranks among the world’s top ten exporters of capital. It has a network of over 110 investment protection agreements. Saudi Arabia is a major destination for Swiss direct investment in the Middle East, with an investment stock of CHF 1.66 billion in 2024. Around 200 Swiss companies are based in Saudi Arabia.

The investment protection agreement was signed by President Guy Parmelin and by the Saudi Minister of Investment, Fahad bin Abduljalil Al-Saif, subject to internal approval procedures in both countries. The next step on the Swiss side will be to draft the explanatory memorandum accompanying the agreement and to submit it to the Federal Assembly for adoption. The agreement will come into effect as soon as the internal approval procedures have been completed in both countries.