Saudi Arabia

The Companies Law of Saudi Arabia (Nizam Al-Sharikat) represents the unified legislation governing all aspects of the corporate life cycle in the Kingdom and provides a basis for economic diversification in accordance with Saudi Vision 2030. Introduced through Royal Decree No. M/132 and effective since June 30, 2022, the Law is regulated by the Ministry of Commerce as regards unlisted companies and by the Capital Market Authority (CMA) for listed firms. The regulation significantly streamlines the business environment by introducing five corporate types, including the versatile Simplified Joint Stock Company (SJSC) aimed at promoting entrepreneurship and venture capital. The legislation significantly decreases the amount of bureaucracy through such provisions as the possibility to incorporate online, liberalized corporate name restrictions, clear statutory definitions of the directors' duties of care and loyalty, and shareholder agreements. In compliance with the Implementing Amendments of April 2026, the regulation is further developed by increasing transparency of Ultimate Beneficial Owners (UBO) and fine-tuning the regulation of related party transactions, removal from boards, and interim profit distributions.