In a historic step reflecting the Kingdom of Saudi Arabia's commitment to preserving its cultural and civilizational identity, the Council of Ministers approved the "National Policy for the Arabic Language." This decision represents a pivotal turning point in the journey to promote the Arabic language, as this policy establishes a comprehensive regulatory framework that ensures the presence of Arabic in all aspects of life, from education and media to international diplomacy and the business sector.

Historical context and the Kingdom's position as a custodian of Arabic

This policy is based on a well-established historical and geographical fact: the Kingdom of Saudi Arabia is the cradle of the Arabic language, the birthplace of revelation, and home to the Two Holy Mosques. This status places an exceptional responsibility on the Kingdom to lead global efforts in protecting and developing the language. This step culminates decades of dedicated work to serve the Arabic language and aligns with the goals of the Kingdom’s Vision 2030, which focuses on strengthening national and Islamic identity and leveraging culture as a soft power to bolster the Kingdom’s global standing.

The eight principles of the national policy for the Arabic language

The adopted policy included eight key principles that form a roadmap for the future of the language in the Kingdom:

• Official language and sovereignty: Emphasizing that Arabic is the official language of the state, and it must be used in all government agencies and the private and non-profit sectors, as it is considered a symbol of sovereignty and national unity.
• Education: Adopting Arabic as the primary language of instruction at all educational levels, to ensure that future generations grow up with sound linguistic awareness and a close connection to their intellectual heritage.
• The overall picture: Arabization of the urban landscape, including directional signs, trade names, contracts, and initiative names, to clearly reflect the Saudi environment's Arab identity.
• Scientific research: Empowering Arabic in research and scientific fields, and encouraging scientific publishing in it to consolidate its interaction with modern sciences.
• Media: Media institutions are committed to providing sound linguistic content that reflects the cultural diversity of the Kingdom and preserves the integrity of the language.
• Business sector: Promoting the use of Arabic in business correspondence, recruitment, and management, and transforming the language into an economically viable tool through "language investment".
• International dimension: The use of Arabic in international forums, conferences, and official diplomatic meetings, with translation provided when needed, to emphasize the Kingdom’s status.
• Culture and Arts: Making Arabic a fundamental pillar in cultural and artistic products to promote national belonging.

Strategic importance: Language as cultural security

This decision transcends mere regulation, reaching the concept of "cultural security." Language is not simply a means of communication; it is the vessel of thought and the bulwark of identity. In the face of accelerating globalization, preserving linguistic independence is a fundamental pillar of cultural independence. This decision is expected to enhance the attractiveness of Saudi Arabia to non-native speakers wishing to learn Arabic, thereby boosting cultural and educational tourism.

The role of the King Salman Global Academy for the Arabic Language

To ensure the effective implementation of this policy, the King Salman Global Academy for the Arabic Language will play a pivotal role in issuing guidelines and providing technical support to various entities. The Academy will work to bridge the gap between legislation and implementation, ensuring that these principles are translated into tangible daily practices that elevate the status of the Arabic language locally, regionally, and internationally.

Minister of Commerce Dr. Majid bin Abdullah Al-Qasabi issued a firm ministerial decree aimed at regulating the business environment and enhancing transparency in the Saudi market. The decree includes issuing warnings and imposing escalating fines on companies that violate regulations regarding the disclosure of "beneficial owners" data. This decision represents a significant regulatory step to ensure that commercial establishments comply with applicable laws and regulations in the Kingdom.

Warning mechanism and corrective grace period

The decision, published in the official gazette “Umm Al-Qura,” stipulates that a warning will be issued to any company that fails to disclose the beneficial owner's information or fails to submit the annual confirmation of that information for the first time. According to this decision, the violating establishment will be granted a 30-day grace period, starting from the day after the warning is issued, to rectify its situation and avoid financial penalties.

Classification of fines by capital

The decision clarified that if the specified deadline expires without correcting the violation, direct financial penalties will be imposed in direct proportion to the size of the company's capital, according to the following classification:

• 4,000 riyals: for companies whose capital is less than 500,000 riyals.
• 20,000 riyals: for companies whose capital ranges between 500,000 and less than 2.5 million riyals.
• 40,000 riyals: for companies with capital ranging from 2.5 million to 5 million riyals.
• 80,000 riyals: for large companies whose capital exceeds 5 million riyals.

Increased penalty in case of recurrence

As part of its regulatory deterrent, the decision included a clause stipulating that the fine would be doubled if the violation of failing to submit the annual confirmation is repeated within the year following the previous final violation decision. The decision also set a ceiling on the total fines, limiting them to 500,000 riyals, reflecting the Ministry's commitment to enforcing regulations.

Context of the decision and its economic importance

This move by the Ministry of Commerce aligns with the Kingdom of Saudi Arabia's ongoing efforts to achieve the goals of Vision 2030 related to improving the business environment and raising the Kingdom's ranking in international transparency indices. Disclosure procedures for the "beneficial owner" are a cornerstone in combating commercial concealment, money laundering, and the financing of terrorism, as identifying the beneficial owner helps prevent the exploitation of legal entities in illicit activities.

Strengthening governance and international compliance

The Kingdom is committed to the international standards issued by the Financial Action Task Force (FATF), and this decision is part of a package of legislative reforms aimed at raising the level of governance in the business sector. Obligating companies to disclose information accurately enhances the confidence of local and foreign investors in the strength of the Saudi economy and the integrity of its transactions, and reduces the risks associated with opaque financial dealings, thus creating a safe and attractive investment environment for capital.