Saudi Arabia and other nations in the region have created new legal frameworks to safeguard the private sector in recognition of the necessity to foster domestic companies and draw in international investment in order to generate prosperity. Local businesses, independent contractors, and foreign investors should feel secure taking financial risks. In order for the economy and private sector to grow, banks are essential. Lenders evaluate the risk of loan and request a fee in return, just like investors. However, loan returns (interest) are inherently lower as they carry substantially less risk than the capital pumped by entrepreneurs, investors, and shareholders, who have all of their capital to lose and must wait in line before reaping a dime of profit. Regardless of how well the business is doing, interest payments are due on a predetermined schedule and are frequently secured by assets alongside the loan amount. Interest payments are senior in the capital structure.