Last reviewed: November 2026. This brief summarises the sustainability, ESG disclosure and corporate governance landscape in Saudi Arabia for boards, sustainability teams and investor-relations professionals. It is an orientation guide, not legal advice.
Rules, thresholds and deadlines change frequently, and several frameworks described here were being revised at the time of writing. Always confirm the current position with the official source (regulator, exchange or ministry) before relying on any requirement.
Overview
Saudi Arabia hosts the largest stock market in the Middle East and is pursuing economic diversification under Vision 2030. Sustainability policy is driven by the Saudi Green Initiative (launched in 2021), large-scale renewable and hydrogen projects, and the Public Investment Fund's role as a major green bond issuer. Corporate ESG disclosure has so far been guided by the exchange rather than mandated by law, but expectations from regulators, index providers and international investors have risen quickly.
Regulators and stock exchange
- Capital Market Authority (CMA) – regulates the capital market and issues implementing regulations, including the Corporate Governance Regulations and rules for sustainable debt instruments.
- Saudi Central Bank (SAMA) – regulates banks, insurers and finance companies.
- Saudi Exchange (part of Saudi Tadawul Group) – operates the Main Market and the Nomu parallel market and publishes ESG guidance for issuers.
- SOCPA – the accounting standard-setter, which has supported the Arabic translation and local consideration of the ISSB standards.
ESG / sustainability disclosure requirements
The Saudi Exchange published ESG Disclosure Guidelines in October 2021, encouraging listed companies to report annually on environmental, social and governance metrics. They are voluntary. GCC exchanges have also worked on a common set of ESG metrics. As of the latest sources reviewed for this brief (2026), no general mandatory sustainability reporting standard such as IFRS S1/S2 had been confirmed for Saudi listed companies, although regulators have signalled alignment with the ISSB as the direction of travel.
A binding element exists for sustainable debt: the CMA's Guidelines for Issuing Green, Social, Sustainable and Sustainability-Linked Debt Instruments took effect on 27 May 2025 and set disclosure expectations (framework, use of proceeds, external review and reporting) for such issues.
Corporate governance code
The CMA's Corporate Governance Regulations (2017) apply to listed companies and combine mandatory articles with guiding provisions. They were amended in January 2023 to align with the new Companies Law, with some amendments taking effect on 1 January 2024. Topics include shareholder rights, board composition and independence, board committees, related-party transactions, remuneration and disclosure. Companies report on compliance in the board of directors' annual report. Banks and insurers are also subject to SAMA governance rules.
Climate commitments
- Net zero: target year 2060, announced in October 2021, using a “circular carbon economy” approach.
- NDC: the updated NDC pledges to reduce, avoid and remove greenhouse gas emissions by 278 million tonnes of CO2e per year by 2030.
- Energy: an aim for around half of electricity capacity to come from renewables by 2030, plus afforestation and land and sea protection goals under the Saudi Green Initiative.
Sustainable finance
- Sovereign green financing: the National Debt Management Center published a Green Financing Framework in 2024, and the Kingdom priced its inaugural sovereign green bond (a euro-denominated tranche) in February 2025.
- PIF: the Public Investment Fund maintains its own Green Finance Framework and has issued green bonds in international markets.
- Capital market: the CMA's 2025 sustainable debt guidelines support domestic green, social and sustainability-linked sukuk and bonds.
Investor relations practice
Saudi-listed companies disclose through the Saudi Exchange in Arabic, with English announcements increasingly standard for larger issuers seeking foreign investors. Index inclusion (MSCI, FTSE Russell, S&P) has raised expectations for quarterly earnings calls, investor days, bilingual IR websites and ESG data. Investors focus on related-party transactions, board independence, dividend policy and, increasingly, energy transition strategy. Many large issuers publish sustainability reports using GRI, with growing reference to TCFD and ISSB concepts.
What to watch
- Any CMA or Saudi Exchange move to make sustainability disclosure mandatory, and the reference standard chosen.
- Further sovereign and PIF green issuance and growth of domestic green sukuk.
- Implementation of the Companies Law and Corporate Governance Regulations amendments.
- Updates to Saudi Arabia's NDC and Saudi Green Initiative targets.
Official sources
- Capital Market Authority (CMA)
- CMA – Implementing regulations (incl. Corporate Governance Regulations)
- Saudi Exchange – ESG guidelines
- Saudi Central Bank (SAMA)
- National Debt Management Center
- Saudi Green Initiative – reducing carbon emissions
Last reviewed: November 2026. Corprise Knowledge Hub briefs are updated periodically; if you notice a change in the rules, check the official source first.
