Saudi Arabia Bans Ministers From Sitting on Company Boards

(Bloomberg) --

Government ministers can’t join or chair the boards of companies, according to an amendment to a Saudi Arabian ministerial decree published Friday in the official gazette Umm al-Qura.

“Any minister is not allowed to chair the board of any company or serve as a member,” the government said. “This does not include those whose chairmanship or membership is by order from the prime minister.” 

Finance minister Mohammed al-Jadaan and Minister of State Ibrahim A. Al-Assaf are currently board members of the state-run energy firm Saudi Arabian Oil Co. 

The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, also has Al-Jadaan and Al-Assaf as board members, along with the ministers of state, commerce, investment and tourism. State-owned Saudi Arabian Military Industries also has ministers of tourism and industry and mineral resources as board members. 

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