Saudi Arabia has adopted a new financial oversight law aimed at strengthening transparency, accountability and fiscal discipline across government institutions, marking another step in the Kingdom’s ongoing reform agenda.

The legislation establishes a clearer framework for monitoring public spending, managing state revenues and enforcing compliance with financial regulations, with the goal of ensuring more effective use of public funds.

Under the new law, oversight bodies are granted expanded authority to audit government entities, review financial performance and investigate irregularities, while ministries and state agencies are required to meet stricter reporting and disclosure standards.

The framework is designed to align public financial management with international best practices and to improve coordination between supervisory authorities.

Saudi officials have said the law will enhance confidence in the management of public finances and support long-term economic sustainability as the country continues to diversify its economy.

The measures complement broader reforms under Vision 2030, which seek to modernise governance, attract investment and reinforce institutional efficiency.

Implementation will be phased, with government bodies given defined timelines to adapt their internal systems and procedures to the new requirements.

Authorities have indicated that enforcement mechanisms, including penalties for non-compliance, will be applied to ensure the law delivers meaningful oversight and measurable improvements in fiscal governance.