Federal Council adopts message on Agreement with Saudi Arabia

Context

In brief

• The Federal Council adopts the message on the Investment Protection and Promotion Agreement with Saudi Arabia.
• The Agreement fills the legal void created after the denunciation of the previous agreement.
• The IPA protects Swiss investments in Saudi Arabia and vice versa.

Key facts

• What: Adoption of the message on the Investment Protection and Promotion Agreement with Saudi Arabia.
• When: September 2, 2026.
• Where: Bern.
• Who: Federal Council.
• Amount: Not specified.

The Federal Council has adopted and transmitted to the Federal Chambers the message on the new agreement for the reciprocal promotion and protection of investments between Switzerland and Saudi Arabia. The Agreement fills the legal void created after the denunciation of the previous agreement by the Gulf country. The Agreement for the reciprocal promotion and protection of investments (IPA) between Switzerland and Saudi Arabia ensures that Swiss investments in Saudi Arabia and, conversely, Saudi investments in Switzerland are protected from political risks. It protects them, in particular, from discriminatory measures and illegal expropriations and guarantees the freedom of transfer of the related payments.

The dispute resolution procedures allow the two States and their respective investors to claim compliance with the Agreement before an international arbitral tribunal. The present IPA fills the legal void created after the denunciation by Saudi Arabia of the previous agreement, which expired on August 9, 2025.

The IPA with Saudi Arabia is based on the new Swiss negotiating approach, first adopted in the IPA with Indonesia, which entered into force on August 1, 2024. Compared to previous agreements, the new normative text contains more detailed provisions aimed at better defining the criteria for the interpretation and application of the Agreement by arbitral tribunals. With a series of provisions on the States' right to legislate, on responsible business conduct, and on the fight against corruption, the Agreement also contributes to reconciling the objectives of investment protection and sustainable development.

With a volume of foreign direct investments exceeding 1340 billion francs, Switzerland ranks among the top ten capital exporters in the world. Our country also boasts a network of over 110 IPAs. Saudi Arabia is an important destination for Swiss direct investments in the Middle East, which amounted to 1.66 billion francs in 2024. Around 200 Swiss companies are active in Saudi Arabia.

The IPA was signed on April 23, 2026, by the President of the Confederation, Guy Parmelin, and the Saudi Minister of Investment, Fahad bin Abduljalil Al-Saif, subject to ratification by the two countries.

Operational details

The Agreement on the Promotion and Reciprocal Protection of Investments (APPI) between Switzerland and Saudi Arabia represents a significant step for the protection of Swiss investments in the Gulf country and vice versa. This agreement fills the legal void created after the denunciation of the previous agreement by Saudi Arabia, which expired on August 9, 2025. The APPI is based on Switzerland's new negotiating approach, first adopted in the APPI with Indonesia, which came into force on August 1, 2024. Compared to previous agreements, the new normative text contains more detailed provisions aimed at better defining the criteria for the interpretation and application of the Agreement by arbitral tribunals. With a series of provisions on the right of states to legislate, on responsible business conduct, and on the fight against corruption, the Agreement also contributes to reconciling the objectives of investment protection and sustainable development. The dispute resolution procedures allow the two states and their respective investors to claim compliance with the Agreement before an international arbitral tribunal. This mechanism ensures greater legal security for Swiss investors in Saudi Arabia and for Saudi investors in Switzerland. With a volume of foreign direct investments exceeding 1340 billion francs, Switzerland ranks among the top ten capital exporters in the world. Our country also boasts a network of over 110 APPIs. Saudi Arabia is an important destination for Swiss direct investments in the Middle East, which amounted to 1.66 billion francs in 2024. Around 200 Swiss companies are active in Saudi Arabia. The APPI was signed on April 23, 2026, by the President of the Confederation, Guy Parmelin, and the Saudi Minister of Investment, Fahad bin Abduljalil Al-Saif, subject to ratification by the two countries.

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

The Agreement on the Promotion and Reciprocal Protection of Investments (APPI) between Switzerland and Saudi Arabia represents a significant step for the protection of Swiss investments in the Gulf country and vice versa. This agreement fills the legal void created after the denunciation of the previous agreement by Saudi Arabia, which expired on August 9, 2025. The APPI is based on Switzerland's new negotiating approach, first adopted in the APPI with Indonesia, which came into force on August 1, 2024. Compared to previous agreements, the new normative text contains more detailed provisions aimed at better defining the criteria for the interpretation and application of the Agreement by arbitral tribunals. With a series of provisions on the right of States to legislate, on responsible business conduct, and on the fight against corruption, the Agreement also contributes to reconciling the objectives of investment protection and sustainable development. The dispute resolution procedures allow the two States and their respective investors to claim compliance with the Agreement before an international arbitral tribunal. This mechanism ensures greater legal security for Swiss investors in Saudi Arabia and for Saudi investors in Switzerland. With a volume of foreign direct investments exceeding 1340 billion francs, Switzerland ranks among the top ten capital exporters in the world. Our country also boasts a network of over 110 APPIs. Saudi Arabia is an important destination for Swiss direct investments in the Middle East, which in 2024 amounted to 1.66 billion francs. Around 200 Swiss companies are active in Saudi Arabia. The APPI was signed on April 23, 2026, by the President of the Confederation Guy Parmelin and the Saudi Minister of Investment, Fahad bin Abduljalil Al-Saif, subject to ratification by the two countries.

Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.

Source: admin.ch