The New Corporate Law Comes into Force Today, Monday 25.07.1437 H, as Confirmed by MCI

02 May 2016
The Ministry of Commerce and Industry starts the implementation of the new Corporate Law today, Monday 25.07.1437 AH corresponding to 02.05.2016 AD. The new law is considered one of the most prominent economic regulations for sustainable development, issued by the state to provide an economic environment to be as incubator and a source of incentives for initiatives and investment.

The new law aims to enhance the companies` value and to develop their activities and contribution for serving the national economy, also it does contribute in reducing the procedures cost and encouraging the initiatives of business activities, so as to promote the Kingdom's leading position and its competitive advantages, besides encouraging the entrepreneurs of small and medium enterprises to do more investments. 

The new system provides the appropriate legal framework for the practice of fair and sound corporate governance principles, dedicating the institutional concepts, and support the growth and continuity of economic entities, besides improving the institutions performance and the integrity of business transactions, all that through the application of sound and fair standards of transparency and disclosure, the new system would give a greater role for the shareholders' associations and boards of directors in shaping the corporate strategies and their responsibilities of the companies activities, the said system states the competences and roles of the supervisory and regulatory bodies over the companies. 

MCI jurisdiction includes all companies except the joint stock companies listed on the Saudi Stock market, where the supervision and control of such companies would be under the jurisdiction of the Capital Market Authority.
For more details about the New Corporate Law, please have access to the following link:​

Last Modified 25 Dec 2018