Alan DignamIBRAHIM MESHARI IBRAHIM ALMESHARI2022-05-282022-05-28https://drepo.sdl.edu.sa/handle/20.500.14154/37910This paper aims to examine these essential elements in the Saudi Arabia market, and answering the question of the ability of the market for corporate control to operate in Saudi capital market as a governance mechanism. Saudi Arabia market is a developing market, and its capital market is the biggest in the region, and the 10th biggest stock exchange the world with a market capitalization over 2 trillion U.S dollars. However, public companies listed in the market have unusual ownership structures comparing with non-regional markets. This is because about two-thirds of the shares are owned by the Saudi government and family groups. Thus, there is around one-third of all shares are owned by minority shareholders, and this arises the question about protecting shareholders in this market. Moreover, there are recent managerial failures and corporations’ scandals. This paper argued that the Saudi market is not efficient enough to attract tender offers, and there is no active market of mergers and acquisitions. However, there are signals of more development as the regulations are now less strict and allow more foreign investment, which might be supported by private equity funds and leveraged buyouts. Thus, currently, the market for corporate control cannot protect shareholders, and the market has to rely on existing authority governance regulations and supervisionen