Ministry of Commerce Clarifies the Key Benefits of the Ultimate Beneficial Owner (UBO) Rules

  Ministry of Commerce Clarifies the Key Benefits of the Ultimate Beneficial Owner (UBO) Rules

 09 Dec 2025

 


The Ministry of Commerce revealed the key benefits of the Ultimate Beneficial Owner (UBO) Rules, which define the UBO as the person — or persons of natural capacity — who has final, actual, direct or indirect control over the company.


The rules enhance corporate transparency and compliance with international requirements, in addition to establishing an accurate database that preserves the information of ultimate beneficial owners in the business sector.


The rules also contribute to facilitating disclosure procedures related to the UBO’s data by aligning them with the procedures for company incorporation requests or the annual confirmation of the commercial registry. The rules additionally provide a guidance manual to help companies comply with identifying the UBO, disclosing the required information, and retaining it.


The rules further ensure the confidentiality of the UBO register, as access to it is restricted solely to regulatory bodies and competent authorities in accordance with the relevant regulations, with the Ministry being obligated to notify any individual whose information is recorded as a UBO.


According to the rules, the Ministry or the liquidator—depending on the case—shall retain the UBO’s data for five years after the company is struck off, to ensure transparency and enable retrieval when needed.


The Ministry affirmed that the UBO Rules represent an important step toward enhancing trust in commercial transactions and supporting the regulatory environment in the Kingdom.


It is worth noting that there are no fees for recording UBO data or for the annual confirmation.


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