Regulatory update – Saudi Arabia

Starting April 03 2025, companies in the Kingdom of Saudi Arabia will be required to disclose and maintain accurate information about their ultimate beneficial owners (UBO).

This new regulation aims to prevent fraud, enhance transparency, and provide public access to important information.

Key changes include:

✅ Incorporation: Companies will be required to disclose details of their UBO to the Ministry of Commerce during the formation process.

✅ Annual Filings: Companies must disclose or confirm their UBOs in their annual filings with the Ministry of Commerce, within 30 days before the anniversary of the company’s formation.

✅ Maintenance & Updates: All existing companies must maintain a UBO register and notify the Ministry of Commerce of any changes to the identity of an ultimate beneficial owner within 15 days of the change.

Non-compliance will result in penalties, including fines of up to SAR 500,000 ($133,000), making it crucial for businesses to stay informed.

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