Saudi Arabia enforces new financial control law across public sector

Dubai: Saudi Arabia has brought its Financial Control Law into force, marking a step toward strengthening oversight across government entities and aligning public finance management with Vision 2030 objectives.

The law, issued under a Council of Ministers resolution, replaces the previous Financial Representatives Law and introduces a broader framework designed to improve efficiency and accountability in how public funds are monitored.

Alongside the rollout, the Ministry of Finance has issued implementing regulations that set out how the new system will be applied across ministries, agencies and state-linked entities.

Wider scope across government

The law applies to all entities funded through the Saudi budget, as well as those receiving government support, grants or subsidies. It also covers organisations that carry out procurement or project work on behalf of government bodies.

This wider scope brings more activities under a unified oversight structure, covering both direct spending and outsourced operations linked to public funds.

Multiple layers of oversight

The framework introduces a mix of control approaches tailored to different types of entities and operations. These include direct control mechanisms, internal self-audit processes, digital monitoring tools and report-based reviews.

The approach is designed to match oversight intensity with the scale and nature of each entity’s activities, while aligning with international practices in financial supervision.