Saudi Arabia ultimate beneficial owner reporting rules to go live

Saudi Arabia has issued new rules compelling companies to disclose their ultimate beneficial owners (UBOs) to the Ministry of Commerce from 3 April 2025.

The UBO Rules apply to all companies registered in Saudi Arabia except publicly listed joint-stock companies.

Companies must now formally register and maintain a record of their UBOs with the Ministry of Commerce.

This expands regulatory oversight beyond financial institutions to all corporate entities, ensuring greater transparency, accountability, and alignment with international standards such as Financial Action Task Force recommendations.

Companies will now be required to submit UBO details during incorporation, update them annually, and notify authorities of any changes within 15 days.

A UBO is defined as any natural person who meets at least one of the following criteria:

• Owns at least 25% of the company’s share capital, directly or indirectly.
• Controls at least 25% of the company’s voting rights, directly or indirectly.
• Has the power to appoint or remove the majority of the board, manager, or chairman.
• Has the ability to influence the company’s operations or decisions.
• Represents a legal entity that meets any of the above conditions.
• If no individual qualifies under these criteria, the company’s manager, board member, or chairman will be deemed as the UBO.