Corporate Governance & Compliance

1. Corporate Governance Policies

1.1 Governance Structure & Responsibilities

Board of Directors Oversight:

• Ensure strategic alignment with BEC Arabia’s vision and regulatory frameworks.

• Establish governance committees for risk management, ethics, and compliance.

Executive Leadership & Management:

• Define leadership roles and responsibilities for effective decision-making.

• Implement transparent reporting mechanisms for accountability and operational efficiency.

Internal Auditing & Financial Control:

• Conduct regular internal audits to ensure compliance with financial regulations and company policies.

• Maintain transparent financial reporting in line with Saudi accounting standards.

1.2 Ethics & Business Conduct Policy

Code of Ethics:

• Uphold integrity, fairness, and transparency in all business activities.

• Prohibit conflicts of interest, bribery, and unethical behavior.

Whistleblower Protection:

• Establish a confidential system for reporting ethical violations.

• Protect whistleblowers from retaliation and ensure independent investigations.

Anti-Corruption & Compliance Measures:

• Adhere to Saudi anti-bribery and anti-money laundering laws.

• Implement training programs to reinforce ethical business conduct.

1.3 Compliance with Regulatory Standards

Saudi Arabian Laws & Regulations:

• Ensure compliance with Saudi corporate laws, labor laws, and commercial regulations.

• Maintain updated legal documentation and regulatory filings.

Industry Standards & Certifications:

• Align company practices with ISO, FIDIC, and other relevant industry standards.

• Conduct regular audits to ensure regulatory compliance.

Data Privacy & Confidentiality:

• Protect corporate and employee data in line with Saudi data protection laws.

• Implement cybersecurity measures and access control policies.

2. Compliance Procedures

2.1 Regulatory Compliance Monitoring

Legal Compliance Review:

• Conduct periodic legal assessments to identify regulatory risks.

• Maintain an updated register of applicable laws and company obligations.

Internal Compliance Audits:

• Schedule routine audits for financial, operational, and ethical compliance.

• Report findings to the executive committee for corrective actions.

2.2 Risk Management & Control Measures

Risk Identification & Mitigation:

• Assess potential operational, financial, and reputational risks.

• Implement proactive mitigation strategies to minimize risks.

Crisis Management & Business Continuity:

• Establish protocols for handling regulatory crises and legal disputes.

• Ensure continuity plans are in place for critical business functions.

2.3 Contract Management & Legal Documentation

Contract Review & Approval:

• Standardize contract drafting and review processes.

• Ensure legal and financial teams validate contracts before execution.

Regulatory Filings & Reports:

• Maintain compliance with government filings, taxation, and financial disclosures.

• Submit timely reports to Saudi authorities and regulatory agencies.

3. Standard Operating Procedures (SOPs)

3.1 SOP for Governance Compliance Audits

Objective: To conduct structured audits ensuring corporate governance adherence.

Procedure:

1. Schedule quarterly governance audits.

2. Review compliance with Saudi corporate regulations and ethical guidelines.

3. Document findings and recommend corrective actions.

4. Submit reports to the Board of Directors and Compliance Committee.

3.2 SOP for Risk Assessment & Mitigation

Objective: To identify, assess, and mitigate corporate risks.

Procedure:

1. Identify risk factors across financial, legal, and operational domains.

2. Assign risk levels and define mitigation strategies.

3. Monitor implementation of risk controls and update policies accordingly.

4. Report critical risks to senior management for immediate action.

3.3 SOP for Regulatory Compliance Reporting

Objective: To ensure timely submission of legal and financial reports.

Procedure:

1. Maintain a compliance calendar for all regulatory deadlines.

2. Prepare reports with accurate financial and operational data.

3. Obtain necessary approvals from legal and executive teams.

4. Submit reports to relevant Saudi government authorities.

Conclusion

Corporate Governance & Compliance is fundamental to BEC Arabia’s sustainable growth, operational efficiency, and legal integrity. By implementing structured governance policies, compliance procedures, and SOPs, the Management Office ensures regulatory adherence, risk mitigation, and ethical business practices in alignment with Saudi Arabian laws and global standards.