Legal Challenges Towards Achieving Corporate Governance Transformations in Emerging Economies—Minority Shareholders’ Rights Protection: The Case of Saudi Arabia

Protecting minority shareholders’ rights within the corporate governance domain constitutes one of the most challenging problems in modern corporations despite it being vital to corporate governance. In Saudi Arabia, shares are mostly owned by the family, while religion and culture play a significant role in corporate entities’ decision-making process. This study aims to provide critical insights into the effectiveness of the legal framework and corporate governance in protecting minority shareholders’ rights in the emerging economy of Saudi Arabia, using an ethnomethodology qualitative approach comprising interview surveys of a group of qualified participants drawn from segments of Saudi Arabia’s society. The participants engaged in quasi-real life settings to enable meaningful and critical responses on various themes attached to corporate governance and the protection of minority shareholders’ rights. Transcripts from the interviews were used as references in providing insights on the subject. The results demonstrate that minority shareholders’ rights in Saudi Arabian public listed companies are sidestepped, and are not interpreted or implemented adequately to protect minority shareholders’ interests. Such a situation presents a challenge to Saudi Arabia in implementing the country’s Vision 2030 transformation programme towards a globalised economy. This study provides further research information and insights by analysing the opinions on the legal framework’s applicability and corporate governance practices in protecting minority shareholders’ rights in the Middle East and North Africa (MENA), particularly within the Gulf Cooperation Council countries.