The Evolving Landscape of Saudi Business Regulations

In 2024 alone, over 60% of Saudi companies reported needing to update their compliance strategies due to newly implemented regulations, including those linked to Vision 2030 reforms and ESG mandates. As Saudi Arabia’s economy continues its transformation, the regulatory changes that accompany this shift are reshaping the way businesses operate.

Whether it’s the expansion of corporate tax laws, data privacy mandates, or ESG reporting requirements, today’s business leaders must stay ahead of an increasingly complex legal framework. For companies looking to scale and remain competitive, understanding these evolving rules is not optional—it’s mission-critical.

This blog explores the current landscape of Saudi business regulations, identifies key challenges, and presents actionable compliance strategies. Let’s unpack what this means for your business in 2025 and beyond.

Regulatory changes refer to updates in laws, rules, and government policies that businesses must follow. These changes may come from royal decrees, government bodies like the Zakat, Tax and Customs Authority (ZATCA), or international compliance requirements such as OECD BEPS frameworks.

For Saudi Arabia, recent updates have included:

• Mandatory e-invoicing (Fatoora Phase 2)
• Stricter AML (Anti-Money Laundering) controls
• ESG disclosures for listed companies
• Enhanced data governance under the Personal Data Protection Law (PDPL)

These shifts are not just about avoiding penalties—they’re about seizing growth opportunities within a compliant, modern economy.

Driving Vision 2030 Goals

Saudi Arabia’s regulatory reforms are aligned with Vision 2030, aiming to diversify the economy, attract foreign investment, and promote good governance. By complying with evolving rules, businesses position themselves as credible, modern, and investment-ready.

Enhancing Investor Confidence

Clear compliance protocols signal corporate integrity. With the Saudi Public Investment Fund (PIF) investing in various sectors, regulatory adherence is becoming a key determinant for funding and partnerships.

Improving Market Access

From cross-border operations to IPO readiness, staying compliant with updated legal frameworks enables Saudi firms to access new markets and operate on global standards.

1. Invest in Centralized GRC Platforms

Governance, Risk, and Compliance (GRC) software like CG BOD helps unify compliance activities, automate workflows, and ensure regulatory alignment across departments.

2. Build a Compliance Taskforce

Appoint a cross-functional team that reviews regulations, updates internal policies, and conducts risk assessments on a quarterly basis.

3. Implement Automated Alerts

Subscribe to updates from regulatory bodies (e.g., SAMA, CMA, ZATCA) and set automated notifications in your compliance system.

4. Adopt ESG & Data Governance Frameworks

Use standards like GRI for ESG disclosures and align your data policies with Saudi PDPL guidelines.

5. Regular Training & Workshops

Educate employees about compliance standards through monthly sessions to build a culture of compliance.

6. Internal Audit & Monitoring

Run bi-annual internal audits to ensure processes are not just documented but also effectively followed.

Case Study 1: Almarai Automates ESG Compliance

Dairy giant Almarai implemented a digital ESG reporting system in 2023. As a result, they reduced their reporting cycle time by 40% and achieved higher ESG ratings, boosting investor confidence.

Case Study 2: A Mid-size Logistics Firm Adopts CG BOD

A Riyadh-based logistics company was facing penalties for missed tax filing deadlines. After integrating CG BOD’s GRC software, they automated VAT filings, improved data integrity, and ensured audit readiness—cutting compliance costs by 30%.

Saudi Arabia’s regulatory environment is shifting rapidly—and it’s not slowing down. From tax updates to ESG frameworks, every business leader, compliance officer, and board director must rethink how they approach governance and risk.