Saudi companies listed on the main Saudi stock market could face new disclosure requirements. The Capital Market Authority has proposed new rules for earnings calls. The proposal aims to improve communication between listed companies and investors. It could also create clearer expectations for financial discussions.
Under the draft provisions, listed companies would hold earnings calls twice each year. They would also need to follow a specific schedule after releasing financial results. The proposed rules focus on companies listed on the main Saudi exchange. Companies would need to organize calls within a defined timeframe.
The Capital Market Authority wants companies to hold earnings calls within five business days. The deadline would follow the release of financial results. This approach would give investors faster access to company management. It would also create a more consistent reporting process.
Additionally, companies would need to provide earnings call details to investors immediately. They would publish the information through their official websites. As a result, investors could prepare for upcoming calls more easily. Analysts could also follow company updates within a clearer schedule.
The proposed changes could make earnings calls a more regular part of market communication. Companies would have clearer expectations when discussing financial performance. Investors and analysts could also receive information within a defined timeframe. This could create a more structured approach to investor relations.
The regulator has opened the draft proposal for public feedback. Interested parties can submit their comments until October 29, 2026. The consultation period will allow market participants to share their views. The regulator can then consider feedback before finalizing the provisions.
Meanwhile, the proposal does not appear to cover companies on Saudi Arabia’s junior market. That market operates under the name Nomu. Therefore, the draft provisions currently focus on the main exchange. The final scope could depend on the regulator’s consultation process.
The proposed changes come as Saudi Arabia continues developing its capital markets. Greater disclosure can help investors understand financial results more quickly. It can also create more direct communication between companies and market participants. Regular earnings calls could support more consistent investor engagement.
Furthermore, earnings calls can give management teams an opportunity to explain financial results. They can also address questions about business performance and future operations. However, the final requirements will depend on the consultation process. Companies would need to adjust their procedures if the rules take effect.
Saudi companies would therefore need to adjust their reporting practices if the rules take effect. Listed firms could also need regular procedures for investor communications. Those changes could affect how companies organize financial reporting periods. They could also influence how management teams communicate with investors.
The regulator has also pursued other changes involving Saudi financial markets. Last week, it opened another consultation concerning overseas investment activities. That proposal focused on the use of borrowed money for certain transactions. It also covered financing linked to initial public offerings.
The earlier proposal included borrowing linked with overseas financial markets. It also addressed financing connected with initial public offerings. The latest consultation instead focuses on earnings calls and corporate communication. Together, the proposals show continued regulatory activity across financial markets.
Overall, the new proposal places greater attention on timely market communication. It also seeks to establish clearer expectations around financial discussions. Investors would receive earnings call information within a defined period. Companies would then have a clearer framework for communicating financial results.
The consultation will now give companies and market participants time to respond. The Capital Market Authority can then consider the feedback before finalizing the provisions. Saudi companies could face the new requirements if the regulator approves them. Until then, the proposals remain subject to the consultation process.
