Saudi Arabia bans ministers from serving on company boards

Exception allowed for those appointed by the prime minister

  
Flag of Saudi Arabia. Image used for illustrative purpose.

Flag of Saudi Arabia. Image used for illustrative purpose.

Getty Images

Government ministers have been barred from joining the boards of companies, according to an amendment to a Saudi Arabian ministerial decree published on Friday in the official gazette Umm al-Qura, Bloomberg reported.

“Any minister is not allowed to chair the board of any company or serve as a member,” the government said. “This does not include those whose chairmanship or membership is by order from the prime minister.”

Finance minister Mohammed al-Jadaan and Minister of State Ibrahim A. Al-Assaf are currently board members of the state-run energy firm Saudi Arabian Oil Co.

The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, also has Al-Jadaan and Al-Assaf as board members, along with the ministers of state, commerce, investment and tourism. State-owned Saudi Arabian Military Industries also has ministers of tourism and industry and mineral resources as board members, the report said.

(Writing by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@refinitiv.com

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