Saudi Shareholder Reform

Average attendance at general meetings of companies listed on the Saudi market fell from about 275 shareholders in 2021 to 178 in 2025, despite the number of meetings rising from 319 to 547. Meanwhile, complaints that agenda items requested by shareholders were not included accounted for 48% of meeting-related complaints between 2019 and 2025. In response to these challenges, the Capital Market Authority proposed a draft on October 29, 2026, to expand shareholder participation and their rights to hold boards of directors accountable. The public consultation will remain open until November 28. The proposal would clarify how agenda items can be added, provide time for questions, and require answers and meeting minutes to be published. It would also allow shareholders holding 5% of a company’s shares to request that general meetings be held in person. In addition, shareholders of companies whose accumulated losses amount to at least 50% of their capital would receive enhanced oversight rights, including the right to request a plan to address the losses and monitor its implementation.

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