Listed joint stock companies
The Capital Market Authority's Corporate Governance Regulations apply on top of the Companies Law. Some provisions are mandatory and others are guiding, and the requirements differ between the Main Market and Nomu.
Company law and governance in Saudi Arabia, handled with precision.
Plain-language guidance on the Companies Law, boards, contracts and disputes, and a direct line to Al-Fahal Law Firm's lawyers in Jeddah when your company needs advice on its own facts.
Consultations are provided by Al-Fahal Law Firm, Jeddah. 012 660 0006
§ 1The legal framework
Seven laws that reshaped Saudi business.
Since 2023, almost every rule a Saudi company works under has been rewritten: how it is formed, registered, staffed and owned. Each change below links to a guide that explains what it means in practice.
- Companies LawRoyal Decree M/132 replaces the 2015 law and its company forms.
- Civil Transactions LawThe first codified rules on contracts, damages and liability.
- Personal Data Protection LawThe grace period ends and enforcement begins.
- Investment LawRegistration with MISA replaces the foreign investment licence.
- Labour Law amendmentsNew rules on resignation, probation and fixed-term contracts.
- Commercial Register LawOne national registration, confirmed every year instead of renewed.
- Real estate ownership by non-SaudisA new framework for foreign individuals and companies owning property.
§ 2Legal services
Legal work for companies, from formation to dispute.
Most enquiries come from founders, boards, shareholders and foreign investors. The services are grouped by the stage of a company's life they deal with.
Companies and governance
Setting up, running and restructuring a Saudi company — and the board, shareholder and compliance rules that come with it.
Contracts and investment
The agreements a business runs on, foreign investment into the Kingdom, and the brands, software and data a company owns.
Disputes
When a contract, a partner or a payment goes wrong: negotiation, commercial court proceedings and arbitration.
Employment, tax and property
Employer obligations under the Labour Law, zakat and tax assessments, real estate, and the entertainment sector.
Saudi laws and regulations the work draws on most often
- Companies Law
- Commercial Register Law
- Investment Law
- Civil Transactions Law
- Labour Law
- Personal Data Protection Law
- Bankruptcy Law
- Arbitration Law
- Commercial Courts Law
- Anti-Concealment Law
- Zakat and tax regulations
- CMA Corporate Governance Regulations
§ 3Governance
Which governance rules apply to your company?
Saudi governance obligations depend on the type of company. Much of what is called governance is guidance, but some of it is law, and boards are expected to know which is which.
Unlisted joint stock companies
The Companies Law sets binding minimums: a board of at least three members, terms of no more than four years, at least four meetings a year, and disclosure of directors' interests. The Ministry of Commerce's governance regulations for unlisted companies are largely guidance.
Limited liability companies
No separate governance code applies. The Companies Law and its Implementing Regulations govern managers, partners' decisions and duties of care and loyalty. Well-drafted articles and a shareholder agreement do most of the work.
Family-owned companies
Owners may adopt a family charter covering ownership, governance, employment of family members and dividends. Once adopted it binds the family, so it should be drafted alongside the articles of association rather than after them.
§ 4The lawyers
The lawyers who will handle your enquiry.
Enquiries sent through this site go to Al-Fahal Law Firm in Jeddah. The lawyer who replies is chosen according to the subject of your matter.
Founder, advocate and legal consultant
Dr. Abdulrazak Ali Al-Fahal
Dr. Al-Fahal founded the firm in Jeddah in 1431 AH after an academic career in law and senior public service. He oversees the firm's work, including its company, governance and dispute matters.
- PhD in Law (comparative public law), Ain Shams University, 1410 AH
- Former head of the law department and legal adviser to the President of King Abdulaziz University
- Appointed by royal order as head of the Public Prosecution in Jeddah
§ 5Working together
How a consultation works.
- 1
Tell us what you need
Send a short enquiry or call the office. Describe the matter in general terms — no confidential documents yet.
- 2
Conflict check and call-back
The firm checks that it can act for you, then contacts you to understand the matter.
- 3
Consultation
You meet a lawyer in Jeddah or online. You get an initial view of your position and options.
- 4
Scope and fees in writing
If you instruct the firm, you receive the scope of work and fees in writing before work begins.
§ 6Legal updates
New laws and regulations, explained.
Short explainers on new Saudi laws, regulations and official announcements that affect companies. Every update links to the official source and shows the date it was published.
- CompaniesHow to register a company in Saudi Arabia, step by stepTo register a company in Saudi Arabia you choose a legal form under the Companies Law, register with the Ministry of Investment if any owner is foreign, reserve a trade name, agree the articles of association, incorporate and obtain a commercial registration through the Ministry of Commerce systems, and then complete tax, labour and sector registrations.3 min read
- GovernanceCorporate governance rules in Saudi Arabia — what is mandatory and what is guidanceCorporate governance in Saudi Arabia is layered. The Companies Law sets binding rules for every company; listed companies must also follow the Capital Market Authority's Corporate Governance Regulations; unlisted joint stock companies have Ministry of Commerce governance regulations that are largely guidance; and LLCs are governed by the Companies Law and their own articles. Knowing which rules are mandatory is the first step in any governance review.3 min read
- GovernanceDuties and liability of board members in Saudi ArabiaUnder the Saudi Companies Law, board members and managers owe the company duties of care and loyalty, must disclose and avoid unauthorised conflicts of interest, and are jointly liable for damage caused by breaches of the law, the articles of association or mismanagement. Well-kept minutes, clear delegations and recorded objections are a director's best protection.2 min read
- GovernanceFamily business charters in Saudi ArabiaThe Saudi Companies Law allows the owners of a family company to adopt a family charter that regulates family ownership, governance, management, the employment of family members and profit distribution. Once adopted, it binds the family members who are party to it, and it works best when drafted together with the articles of association and a shareholder agreement.2 min read
§ 7Questions
Before you get in touch.
Is this website a law firm?
Company Law & Governance is a legal information website. Consultations are provided by Al-Fahal Law Firm (Dr. Abdulrazak Ali Al-Fahal Advocates and Legal Consultants), whose office is in Jeddah. When you send an enquiry through this site, it is passed to the firm.
Do I need to be in Jeddah to get advice?
No. The firm's office is in Jeddah, and it acts for clients in Riyadh, the Eastern Province and elsewhere in the Kingdom. Many meetings can be held online; court hearings take place wherever the case is filed.
Can you advise foreign companies entering Saudi Arabia?
Yes. Foreign investors need to register with the Ministry of Investment under the Investment Law that took effect in 2025, choose a suitable company form under the Companies Law, and obtain a commercial registration. The firm advises on each step.
Which languages can I use?
You can write in Arabic or English. Tell us your preferred language in the enquiry form and the firm will reply in it.
Are the legal updates on this site legal advice?
No. They explain new rules in general terms and link to the official text. How a rule applies to your company depends on its facts, so speak to a lawyer before acting on an update.
Talk to a lawyer about your company.
Describe your question in a few lines. A lawyer from Al-Fahal Law Firm will reply to arrange a consultation.
Telephone
Office
Office 1206, The Headquarters Business Park, Corniche Road, Ash Shati
Jeddah 23511
Hours
Sunday to Thursday, 9:00 am – 4:30 pm
Please don't send confidential documents until the firm has confirmed it can act for you. Getting in touch does not, on its own, make you a client of the firm.