Corporate Governance Review In Saudi Arabia
Corporate governance review in Saudi Arabia involves evaluating the effectiveness, structure, and practices of a company’s decision-making framework. It ensures that the board, management, and shareholders operate within a system that promotes accountability, transparency, and regulatory compliance. MFD Services offers corporate governance reviews tailored to the local legal environment, helping businesses improve their controls and meet the governance expectations set by regulatory bodies in Saudi Arabia.
Why Corporate Governance Review Matters In Saudi Arabia With MFD Services
Saudi Arabia’s regulatory ecosystem has evolved to demand better transparency and accountability in both listed and private companies. Authorities such as the Capital Market Authority (CMA) and Ministry of Commerce expect companies to establish clear governance structures, roles, and risk controls.
MFD Services helps businesses conduct comprehensive governance reviews, addressing gaps in board composition, committee effectiveness, shareholder rights, and internal control mechanisms. Our reviews align with local laws and best practices — making your business governance-ready for audits, investment rounds, or public listings.
Types Of Entities That Need Governance Reviews In Saudi Arabia
Corporate governance reviews are crucial for:
- Publicly listed companies (Tadawul)
- Closed joint stock companies
- Family-owned businesses planning succession
- Foreign-invested companies under MISA
- Regulated firms in finance, healthcare, and insurance
- Companies preparing for IPO or investor onboarding
MFD evaluates each entity based on sector, size, and risk exposure to recommend a governance improvement roadmap.
What Are The Legal Requirements For Corporate Governance In Saudi Arabia?
While governance codes vary across sectors, most companies are expected to follow CMA or Ministry of Commerce guidelines. This includes forming qualified boards, establishing audit and risk committees, implementing clear reporting lines, and disclosing related party transactions.
MFD Services helps interpret and apply these governance codes to your business environment. We identify non-compliance areas and assist with corrective actions, board training, and documentation updates.
What Documents Are Required For Governance Reviews In KSA?
To perform a full corporate governance review, the following documents are typically assessed:
- Company’s Articles of Association
- Board and committee charters
- Shareholder agreements
- Internal policies and control manuals
- Board meeting minutes and agendas
- Annual reports and disclosures
- Organizational charts and job descriptions
- Conflict of interest declarations
MFD reviews each document, highlights weaknesses, and prepares recommendations for governance improvements.
Governance Review Cost, Duration, And Process
Estimated Pricing
Corporate governance review costs depend on company size, documentation availability, and regulatory scope. Fees generally range between SAR 5,000 to SAR 15,000. Additional charges may apply if board policy drafting or restructuring is required. MFD shares a final quote after the initial documentation check.
Estimated Timeline
Governance reviews usually take 7 to 20 business days depending on company size and responsiveness in providing information. Delays can occur if critical board documents are missing or outdated.
How The Process Works
We begin with a request for governance-related documents. Once reviewed, our team conducts interviews with key management or board members (if required), analyzes your governance structure, and prepares a detailed report. The review includes findings, risks, and practical recommendations — delivered in a presentation or written format.
Contact Us
Book an Appointment with Us
Schedule a consultation with MFD Business Solutions today and discover how our expert Actuarial Valuation and financial consulting services can enhance the accuracy and reliability of your financial records.
How Governance Reviews Connect With Legal And Regulatory Standards
Corporate governance is linked directly with compliance obligations, audit quality, investor confidence, and risk control. In Saudi Arabia, companies that neglect governance often face challenges in funding, licensing renewals, or board disputes.
MFD ensures your governance review is not only legal but practical — aligning internal structures with your business goals and the Kingdom’s laws.
What Challenges Do Companies Face With Corporate Governance In Saudi Arabia?
Common issues companies experience include:
- Undefined roles between board and management
- Missing or outdated board policies
- Lack of independent directors or audit committees
- Weak documentation of board decisions
- Gaps in conflict of interest and risk control procedures
How MFD Services Solves Governance Issues
MFD Services provides structured, practical governance evaluations based on current laws and business practices. We go beyond theory — we help you fix what’s missing.
- Detailed review of governance documentation
- Gap analysis versus CMA/MoC governance codes
- Board structure advisory and policy development
- Templates for charters, disclosures, and meeting protocols
- Post-review support for implementation and training
Why Choose MFD For Corporate Governance Review In Saudi Arabia?
MFD Services is known for its strong governance and compliance advisory work. We’ve helped local firms, foreign investors, and family businesses align their governance with Saudi regulatory expectations. Our reports are actionable, realistic, and designed for improvement — not just paperwork.
Ready To Strengthen Corporate Governance In Saudi Arabia?
If your business needs to update, document, or improve its governance framework, MFD Services is ready to support. From basic reviews to board-level restructuring, we deliver clarity, compliance, and structure that helps your business lead with confidence.
FAQ's
Corporate Governance is the framework that ensures transparency, accountability, and ethical practices within a company, fostering sustainable growth and investor confidence.
The Corporate Governance Review identifies areas for improvement, offering strategic insights that drive decision-making, sustainable success, and investor trust.
The review assesses board effectiveness, management structures, transparency, and shareholder engagement, ensuring alignment with recognized frameworks.
Yes, our team collaborates closely with your leadership to tailor the review, ensuring it meets your specific requirements.
We remain your trusted partner, offering continuous guidance to ensure your governance practices evolve and stay effective over time.