CORPORATE GOVERNANCE IN THE SAUDI LEGAL FRAMEWORK: TRANSPARENCY, DISCLOSURE, AND VISION 2030 IMPERATIVES

Abstract

This study explores the legal impact of corporate governance within Saudi joint stock companies, emphasizing the critical role governance frameworks play in ensuring corporate success, sustainability, and market integrity. The research specifically focuses on the principle of transparency and disclosure as a key component of corporate governance, analyzing its conceptual foundations, implementation mechanisms, and the influence of regulatory and supervisory bodies in fostering a transparent corporate environment. The study examines how these bodies contribute to the creation of an efficient, equitable market—one in which information is readily accessible to all stakeholders without discrimination, thereby safeguarding their legal rights and enhancing trust in corporate practices. Through a detailed legal analysis, the research highlights the significance of embedding governance principles, particularly transparency, into the legislative framework governing joint stock companies in the Kingdom of Saudi Arabia. The findings underscore several key conclusions: 1. The application of corporate governance, particularly mechanisms such as disclosure and transparency, significantly enhances corporate performance and secures the long-term rights of stakeholders, especially investors. 2. Governance, grounded in principles of integrity and transparency, serves as a vital safeguard for corporate operations, with pronounced importance for financial institutions in the Kingdom. 3. The integration of governance principles within the Companies Law and its executive regulations represents a substantial legal advancement aligned with Saudi Arabia’s Vision 2030. This integration promotes economic diversification, enhances investor confidence, supports the global competitiveness of Saudi companies, and fosters sustainable development in accordance with the principles of Islamic Sharia. This study contributes to the growing body of legal scholarship on corporate governance in the Middle East, offering practical insights into how transparency-oriented governance can serve as a catalyst for economic reform and institutional resilience.