Saudi Finance Activates New Financial Control Law
Riyadh | BETH
The Saudi Ministry of Finance has announced the entry into force of the Financial Control Law, issued by the Council of Ministers under Resolution No. (M/122) dated December 1, 2025, as part of ongoing efforts to enhance the public financial oversight framework and improve its efficiency in line with the objectives of Saudi Vision 2030. The new law replaces the Financial Representatives Law.
Details
In parallel with the commencement of the law, the Ministry issued its implementing regulations, which outline the mechanisms for application and enable government entities to adopt modern oversight approaches commensurate with the nature and scale of their operations. This step is expected to enhance spending efficiency, transparency, and accountability across the public sector.
The scope of the law covers entities funded by the state budget, as well as those receiving support, grants, or subsidies from the government. It also applies to entities that carry out works or procurements on behalf of government agencies, thereby ensuring comprehensive oversight of public expenditures.
The Financial Control Law is based on a combination of oversight approaches, including:
- Direct Control: Immediate monitoring of financial operations.
- Self-Control: Strengthening institutional responsibility for efficient resource management.
- Digital Control: Leveraging advanced technologies to monitor financial performance.
- Report-Based Control: Ensuring transparency and providing accurate data to support decision-making.
These mechanisms are aligned with international best practices in financial oversight and governance, reinforcing the Kingdom’s commitment to sound public financial management.
BETH Analysis
The activation of the Financial Control Law represents a strategic step toward modernizing Saudi Arabia’s financial governance framework. It reflects a transition from traditional oversight methods to a comprehensive model built on digitalization, transparency, and institutional accountability.
The law is expected to enhance the efficiency of public spending, strengthen investor confidence, and support the Kingdom’s fiscal sustainability. It also underscores the continuation of structural reforms aimed at reinforcing Saudi Arabia’s position as a global model in prudent financial management and governance, in alignment with Vision 2030.