RIYADHDUBAI, Jan 10 Reuters For private equity investor Imad Ghandour changes in Saudi Arabia39;s laws are prompting a rethink and his firm may buy, for the first time, minority stakes in the kingdom39;s companies. It is exactly an effect the country39;s leaders are aiming for as they seek to woo billions of dollars in new capital to wean its economy off fossil fuels.

On Dec. 16, the kingdom39;s first written civil code came into effect, replacing a system where judges would have full discretion in ruling on commercial disputes using Islamic law, sharia, as guidance. That created uncertainty for investors like Ghandour, who until now would only invest in majority stakes in Saudi companies.

The new framework allows us to protect ourselves better and more predictably than under the old law, said Ghandour, cofounder and managing director at CedarBridge Capital Partners, which has over 140 million in assets in Europe and Middle East.

The new civil transactions law is part of Saudi Arabia39;s Vision 2030 reform plan to pivot its economy away from oil and gas sector.

Riyadh in 2021 set target of reaching 100 billion in foreign direct investment by 2030, which appears still far off with most recent data showing just under 33 billion in inflows in 2022.

Some advisers say the new law could be a game changer providing legal clarity for the legions of banks, law firms, asset managers and corporations that are establishing offices or weighing investments in the Gulf39;s biggest…