The Ministry of Finance of the Kingdom of Saudi Arabia has announced the commencement of the Financial Control Law, issued by the Council of Ministers under Resolution No. (M/122), effective December 1, 2025.
This step forms part of the Kingdom’s broader efforts to strengthen the public financial oversight framework and enhance its efficiency, in line with the objectives of Saudi Vision 2030. The new law replaces the previous Financial Representatives Law, marking a significant shift toward more modern and flexible financial governance.
Implementation framework
In parallel with the law’s entry into force, the Ministry has issued its implementing regulations, which outline detailed application mechanisms. These regulations are designed to enable government entities to adopt advanced and adaptable oversight approaches that correspond to the nature, size, and operational complexity of their activities. They also aim to promote transparency, accountability, and effective risk management across public sector institutions.
The scope of the Financial Control Law extends to all entities funded by the Saudi state budget, as well as those receiving financial support, grants, or subsidies from the government. It also applies to organizations and contractors undertaking projects, services, or procurements on behalf of government agencies, thereby ensuring comprehensive financial supervision across all related activities.
The Financial Control Law introduces an integrated system of oversight approaches, combining direct control, self-control, digital control, and report-based control. This multi-layered framework allows for a more dynamic and risk-based supervision model, tailored to the specific functions of each entity. It also aligns with international best practices in public financial management and oversight.
Financial Control Law advance data-driven monitoring
Furthermore, the law emphasizes the use of digital tools and data-driven methodologies to improve monitoring efficiency and decision-making processes. By leveraging technology, the Ministry aims to enhance real-time oversight, reduce administrative burdens, and support proactive identification of financial irregularities.
The implementation of the Financial Control Law represents a key milestone in the Kingdom’s ongoing financial reform agenda, reinforcing governance standards and contributing to the sustainability and integrity of public finances.
