Corporate Governance Country Assessment : Kingdom of Saudi Arabia
Good corporate governance ensures that companies use their resources more efficiently, protects minority shareholders, leads to better decision making, and improves relations with workers, creditors, and other stakeholders. It is an important prere...
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| Format: | Report |
| Language: | English en_US |
| Published: |
Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/838731468106752813/Kingdom-of-Saudi-Arabia-Report-on-the-Observance-of-Standards-and-Codes-ROSC-corporate-governance-country-assessment http://hdl.handle.net/10986/28086 |
| Summary: | Good corporate governance ensures that
companies use their resources more efficiently, protects
minority shareholders, leads to better decision making, and
improves relations with workers, creditors, and other
stakeholders. It is an important prerequisite for attracting
the patient capital needed for sustained long-term economic
growth. This report provides an assessment of the Kingdom of
Saudi Arabia (KSA) corporate governance policy framework. It
highlights recent improvements in corporate governance
regulation, makes policy recommendations, and provides
investors with a benchmark against which to measure
corporate governance in KSA. The corporate governance laws,
regulations, and institutions that have been put in place
generally reflect international good practice. In the wake
of the market correction of 2006, market regulators focused
on the need for better corporate governance via legal and
institutional reforms. These included passing a Corporate
Governance Regulation (CGR) for listed companies (2006), and
further strengthening the supervisory functions across the
financial sector. However, many of the laws and institutions
are still relatively new and untested; awareness of the
importance of good corporate governance is low, and
implementation by companies in its early stages. |
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