10 Common Compliance Mistakes Saudi Businesses Make & How to Avoid Them

Did you know that nearly 40% of Saudi businesses face compliance issues annually due to outdated practices and lack of regulatory alignment? With Vision 2030 driving rapid reforms and digital transformation, compliance has become more than just a legal obligation—it’s a strategic business imperative.

Saudi Arabia’s regulatory environment is evolving fast, with oversight from authorities like the Saudi Arabian Monetary Authority (SAMA) and the National Cybersecurity Authority (NCA). As the bar for governance, risk, and compliance (GRC) rises, even well-intentioned organizations can fall into costly traps.

This blog outlines the 10 most common compliance mistakes Saudi businesses make—and, more importantly, how to avoid them. Whether you’re a business leader, compliance officer, or risk manager, this guide will help you stay ahead in a changing landscape.

Compliance refers to adhering to laws, regulations, and internal policies that govern how a business operates. In Saudi Arabia, compliance spans across financial reporting, data privacy, anti-money laundering (AML), cybersecurity, labor laws, and more.

Failing to comply can lead to:

• Hefty fines and legal action
• Reputational damage
• Suspension of operations
• Loss of customer and investor trust

Saudi Arabia is undergoing a massive economic transformation under Vision 2030, which has introduced new regulatory frameworks and enforcement protocols.

Key factors driving compliance urgency:

• Stricter enforcement from SAMA, NCA, CMA, and ZATCA
• Digitalization of business processes, increasing exposure to cyber risks
• Foreign investment and IPOs requiring governance transparency
• Regional competition, pushing businesses to global standards

Ignoring compliance in this environment is not just risky—it’s unsustainable.

1. Ignoring Regulatory Updates

Many companies don’t actively monitor changes in SAMA, NCA, or ZATCA guidelines. This leads to non-compliance with new rules.

Solution:
Subscribe to regulatory bulletins and use automated compliance monitoring tools.

2. Lack of a Centralized Compliance Framework

Operating in silos makes it hard to align departments on regulatory requirements.

Solution:
Implement a unified GRC platform to streamline compliance, risk, and governance processes.

3. Inadequate Cybersecurity Controls

Many firms underestimate the requirements under NCA’s Essential Cybersecurity Controls (ECC).

Solution:
Conduct annual cybersecurity audits and align IT policies with NCA’s framework.

4. Poor Documentation and Record-Keeping

Failure to keep detailed records can create issues during audits or inspections.

Solution:
Use digital recordkeeping tools with secure access and automated logging.

5. Untrained Staff

Employees unaware of compliance protocols are a major risk factor.

Solution:
Conduct regular training sessions on internal policies, regulatory changes, and cybersecurity hygiene.

6. No Risk-Based Approach to Compliance

Treating all compliance issues the same can waste resources and increase exposure.

Solution:
Adopt a risk-based compliance strategy. Prioritize risks with higher impact and probability.

7. Overlooking Third-Party Risks

Vendors and partners can introduce compliance risks if not vetted properly.

Solution:
Perform due diligence and maintain a vendor risk register.

8. Failure to Report Incidents Timely

Delaying reports on breaches or non-compliance can worsen penalties.

Solution:
Develop an internal incident response and reporting protocol with defined SLAs.

9. Inconsistent Internal Policies

Disjointed policies across departments can cause confusion and non-compliance.

Solution:
Create and maintain a centralized policy library with version control.

10. Lack of Compliance Automation

Manual compliance tracking is inefficient and error-prone.

Solution:
Invest in GRC software like CG BOD to automate compliance checks, reporting, and alerts.

Case 1: Riyadh-based Healthcare Provider

After a failed audit, the organization adopted a GRC platform, aligned its processes with NCA and MoH requirements, and reduced audit risks by 80% in six months.

Case 2: Fintech Startup in Dammam

To secure SAMA licensing, the company implemented ISO-aligned risk frameworks and used CG BOD to automate reporting—achieving full compliance in under 90 days.

Case 3: Manufacturing Firm in Jeddah

The company centralized its compliance efforts using CG BOD’s risk register and vendor management tools, improving regulatory response time by 60%.

• Assign a dedicated compliance officer or team
• Use a risk-based approach to prioritize compliance tasks
• Leverage GRC tools to automate reporting and audits
• Keep staff informed with quarterly training sessions
• Regularly review and update policies based on regulatory trends.

In Saudi Arabia’s fast-evolving business landscape, compliance is not a one-time task—it’s an ongoing strategic priority. Avoiding common pitfalls and embracing a structured approach can help you navigate complexity and build long-term resilience.