Switzerland Signs Investment Protection Agreement with Saudi Arabia
Summary
On 23 April 2026, Swiss President Guy Parmelin and Saudi Minister of Investment Fahad bin Abduljalil Al-Saif signed a bilateral investment protection agreement in Jeddah, witnessed by Saudi Foreign Minister Prince Faisal bin Farhan Al Saud. The agreement replaces a prior treaty that Saudi Arabia terminated on 9 August 2025, restoring protections for Swiss investors against discriminatory state measures, unlawful expropriation, and barriers to fund transfers, while providing for international arbitration of disputes. Switzerland hosts CHF 1.34 trillion in foreign direct investments and maintains over 110 such agreements globally; Saudi Arabia represents CHF 1.66 billion in Swiss investment stock and approximately 200 Swiss companies. The agreement enters into force once both countries complete internal approval procedures, with Switzerland next drafting an explanatory memorandum for Federal Assembly adoption.
“The investment protection agreement provides safeguards against political risks that might affect Swiss investments in Saudi Arabia, and vice versa.”
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GovPing monitors Switzerland SECO Labor News for new labor & employment regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 12 changes logged to date.
What changed
The agreement introduces a comprehensive framework of investment protections for Swiss companies operating in Saudi Arabia and vice versa, covering anti-discriminatory measures, protections against unlawful expropriation, free transfer of investment payments, and investor-state dispute resolution via international arbitration. It also incorporates provisions on state regulatory powers, corporate social responsibility, and anti-corruption obligations, aligning investment protection goals with sustainable development objectives.
Swiss companies with existing or planned investments in Saudi Arabia gain formal legal safeguards against political and regulatory risks, including access to arbitration tribunals for disputes. Approximately 200 Swiss firms in Saudi Arabia should note that the agreement fills the legal vacuum from the prior treaty termination but remains subject to parliamentary approval in both Switzerland and Saudi Arabia before it enters into force. No immediate compliance obligations arise, but businesses should monitor the Federal Assembly's ratification process.
Archived snapshot
Apr 24, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Press release Published on 23 April 2026
Signing of an investment protection agreement with Saudi Arabia
Berna, 23.04.2026 — On 23 April, President Guy Parmelin and Saudi Minister of Investment Fahad bin Abduljalil Al-Saif signed an investment protection agreement between Switzerland and Saudi Arabia in Jeddah, in the presence of Minister of Foreign Affairs Prince Faisal bin Farhan Al Saud.
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.
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