New Saudi UBO Disclosure Rules Take Effect Jan 2026

New Beneficial Owner Rules issued by the Ministry of Commerce came into force on 4 January 2026, requiring companies registered in Saudi Arabia to disclose the natural persons who ultimately own or control them. The rules were issued under Ministerial Decision No. 267, dated 05/06/1447H (26 November 2025).

The requirements apply to all companies holding a valid commercial registration, including general partnerships, joint-stock and simplified joint-stock companies, limited liability companies, and registered foreign companies. Exemptions in 2026 are limited to subsidiaries of firms listed on a Saudi stock exchange, companies wholly owned by the state, and those under insolvency or liquidation procedures.

A beneficial owner is defined as any natural person who owns 25% or more of a company's capital directly or indirectly, controls at least 25% of voting rights, or otherwise exercises ultimate effective control. If no such person can be identified, the company's manager, board member, or chairman is treated as the beneficial owner.

Companies must keep an internal register at their head office listing each beneficial owner's personal and identification details, ownership or control percentage, and the basis of that control. The register must stay accurate and available for inspection by the competent authorities.

Firms must also submit the information to the Ministry through their electronic account on the Saudi Business Center (business.sa), linked to the commercial registration. Data must be confirmed and updated annually on the anniversary of the registration, and any change in ownership or control at any level reported within 15 days.

Companies formed on or after 3 April 2025 must enter beneficial owner data within the electronic incorporation application, as registration cannot be completed without it. Existing companies formed before that date must file an initial disclosure followed by annual confirmations, ensuring their register matches the Ministry's records. The move strengthens business transparency and aligns Saudi practice with global standards.

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