Objective: The study aims to conduct a comparative analysis of the legal frameworks relating to joint stock companies in the Kingdom of Saudi Arabia and the United States of America, focusing on corporate law developments in the Kingdom of Saudi Arabia that are consistent with Vision 2030.
Theoretical framework: The theoretical framework of the study uses several theories, institutional theory, cultural theory, and agency theory, to study how corporate laws evolve in different legal and cultural contexts while maintaining their effectiveness in promoting economic development.
Methodology: This article's methodology is based on a comparative analysis of primary legal sources and secondary literature from Saudi Arabia and the United States, focusing on developments between 2015 and 2024, including the reforms of Saudi Arabia’s Vision 2030.
Results and Discussion: The results of the study indicate that Saudi Arabia and the United States are similar in terms of corporate regulation, shareholder protection, board of directors, and transparency. By examining the regulatory procedures, shareholder rights, and requirements of joint stock companies in Saudi corporate law, this study finds an indication of the success of Saudi corporate law with international law and its distinction in Islamic law.
Research Implications: The results obtained revealed some contemporary developments in the joint stock companies regulations in the Kingdom of Saudi Arabia, especially those arising from the Vision 2030 reforms, which indicate the Kingdom’s readiness to develop a more effective, transparent, and attractive investment field for external investors.
Originality/Value: This study contributes to policy-making in both countries and helps in the decision-making process regarding cross-border investment, knowing that different legal frameworks can efficiently regulate the contemporary form of business entities. In addition, this analysis will help in understanding the reforms of Saudi corporate law in emerging markets in line with local legal culture and design.
