Enhancing the Effectiveness of Boards of Listed Companies in Saudi Arabia by Promoting Gender and Ethnic Diversity - Proposals Based on a Comparative Analysis with the United Kingdom

Abstract

Corporate Governance is labelled as ‘key tool’, designed to create principles among shareholders, curb incompliance, support the society and motivate company transparency whilst ensuring stability in the financial market. Corporate governance in lieu of its business, legal and financial environment. Additional obstacles are vested into the implemented structure, provided by Saudi Arabia’s Vision 30, which Indeed, Saudi Arabia recognised several barriers to their effective had a prominent impact on the board of directors in publicly listed companies. This research will assess the new provision in terms of corporate governance in Saudi Arabia and whether it is compliant with international standards. It will critically evaluate the main objectives given by the new Corporate Governance Regulation, updated in 2017. It examines the improvement in corporate governance as a result of the current framework as well as proposals for reform, aimed to achieve greater diversification in the boardroom. The thesis strives to assess potential proposals for change to the Saudi corporate governance in order to meet the set international standards. It will incorporate a comparative study with both the United Kingdom and other international standards, such as Norway, to analyse the Saudi regulation in the context of its suitability with the economic and legal environment in Saudi Arabia. Initially, it will evaluate the UK Corporate Governance Code as well as the UK Companies Act 2006 to establish what could be used to enhance the corporate environment in Saudi Arabia. The study will concentrate on various difficulties, precisely, boardroom practice and ethnic/ gender diversity in Saudi companies. It will take into account all relevant theories, such as the agency theory, and essential models of corporate governance that influence the board of directors.