Wednesday, December 10, 2025
Saudi Arabia’s Revised Rules for Identifying the Beneficial Owner
Saudi Arabia’s Minister of Commerce, Dr. Majed Al-Qasabi, has approved new and updated rules for identifying a company's beneficial owner.
Under the new criteria, a beneficial owner is a person who owns 25% or more of a corporation, either directly or indirectly.
If the true owner of a company is unclear or everyone owns less than 25% of the firm, the regulations examine the individual with the most significant and immediate influence over the business. This individual has ultimate decision-making authority over the company, regardless of their ownership stake. Similar: Saudi Arabia enforces 500 riyals fine for failure to submit beneficial owner information
Depending on the company's structure, the manager, a board member, or the chairman may be listed if the beneficial owner cannot be established through ownership or control. Only in extreme cases is this course of action taken.
The rules also clarify what happens when a partner or shareholder is acting on behalf of someone else. Anyone who uses another person’s shares or stake must disclose the real beneficial owner’s information and report any changes within 15 days.
One major update is an exemption: subsidiaries of companies listed on the Stock Exchange do not have to comply with these disclosure requirements. This is because market laws already require publicly traded corporations to be very open and honest about their financial status. See Also: Saudi Moroor announces fines up to 6000 riyals for traffic violations
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| Saudi Arabia’s Revised Rules for Identifying the Beneficial Owner |
