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Top GRC Challenges for Saudi Companies in 2025
Navigating Vision 2030’s Complex Regulatory Landscape
As Saudi Arabia advances toward its Vision 2030 goals, companies across the Kingdom face an unprecedented array of governance, risk, and compliance challenges. The rapid digital transformation, evolving regulatory landscape, and increasing international scrutiny have created a complex environment where traditional GRC approaches are no longer sufficient.
This comprehensive analysis examines the most critical GRC challenges facing Saudi companies in 2025, providing insights into regulatory complexities, emerging risks, and strategic solutions for organizational resilience.
Current Regulatory Environment
Saudi companies must navigate an increasingly complex web of regulatory requirements from multiple authorities, each with distinct compliance demands and enforcement mechanisms.
SAMA – Saudi Central Bank
NCA – National Cybersecurity Authority
CMA – Capital Market Authority
ZATCA – Tax Authority
SFDA – Food & Drug Authority
SDAIA – Data & AI Authority
NCEC – Environmental Compliance
Ministry of Investment
Top 10 GRC Challenges
1
Critical Impact
Regulatory Fragmentation and Complexity Increasing
Challenge: The coexistence of multiple regulatory frameworks (SAMA, NCA, CMA, ZATCA) creates confusion and compliance fatigue. Organizations struggle to align overlapping requirements and manage conflicting compliance priorities.
Impact: 40% increase in compliance costs and audit preparation time, with companies often implementing duplicate controls across different regulatory requirements.
Impact: 40% increase in compliance costs and audit preparation time, with companies often implementing duplicate controls across different regulatory requirements.
2
High Impact
Cybersecurity Governance Integration Critical
Challenge: Implementing NCA’s Essential Cybersecurity Controls while maintaining SAMA’s Cybersecurity Framework compliance. The pace of cyber threats often outpaces traditional risk management processes.
Impact: 65% of financial institutions report difficulty in balancing cybersecurity investments with operational efficiency, leading to potential regulatory violations and security vulnerabilities.
Impact: 65% of financial institutions report difficulty in balancing cybersecurity investments with operational efficiency, leading to potential regulatory violations and security vulnerabilities.
3
High Impact
ESG Compliance and Reporting Emerging
Challenge: Meeting new Environmental, Social, and Governance disclosure requirements from CMA while aligning with Vision 2030 sustainability goals. Lack of standardized ESG metrics and reporting frameworks.
Impact: Companies without robust ESG frameworks face reduced investor confidence, with over $30 trillion in global assets now managed using ESG criteria affecting Saudi market access.
Impact: Companies without robust ESG frameworks face reduced investor confidence, with over $30 trillion in global assets now managed using ESG criteria affecting Saudi market access.
4
Medium Impact
Digital Transformation Risk Management Accelerating
Challenge: Embedding GRC into digital transformation agendas while managing risks from AI implementation, cloud adoption, and automated processes without adequate governance controls.
Impact: Technology risks often outpace control implementation, with 45% of companies reporting governance gaps in their digital transformation initiatives.
Impact: Technology risks often outpace control implementation, with 45% of companies reporting governance gaps in their digital transformation initiatives.
5
High Impact
Talent and Skills Gap Worsening
Challenge: Shortage of qualified GRC professionals who understand both local Saudi regulations and international standards. Difficulty in retaining specialized compliance talent.
Impact: 60% of organizations report inadequate internal GRC expertise, leading to increased reliance on external consultants and potential compliance oversights.
Impact: 60% of organizations report inadequate internal GRC expertise, leading to increased reliance on external consultants and potential compliance oversights.
6
Medium Impact
Third-Party Risk Management Stable
Challenge: Managing vendor compliance across complex supply chains, especially with international partners who must meet Saudi regulatory requirements. Cloud service provider compliance presents particular challenges.
Impact: Third-party failures can result in regulatory violations, with companies facing liability for vendor non-compliance under increasingly strict oversight regimes.
Impact: Third-party failures can result in regulatory violations, with companies facing liability for vendor non-compliance under increasingly strict oversight regimes.
7
High Impact
Data Governance and Localization New Requirement
Challenge: Implementing data localization requirements while maintaining global operations. SDAIA regulations require specific data handling and storage protocols that conflict with international business models.
Impact: Data localization costs can increase operational expenses by 25-30%, while non-compliance risks significant penalties and operational restrictions.
Impact: Data localization costs can increase operational expenses by 25-30%, while non-compliance risks significant penalties and operational restrictions.
8
Medium Impact
Cross-Border Compliance Alignment Growing
Challenge: Navigating both local Saudi regulations and international compliance standards (GDPR, SOX, etc.) simultaneously. Increased cross-border trade requires global compliance alignment.
Impact: Dual compliance requirements increase operational complexity and costs, with potential conflicts between local and international regulatory expectations.
Impact: Dual compliance requirements increase operational complexity and costs, with potential conflicts between local and international regulatory expectations.
9
High Impact
Budget Constraints and Resource Allocation Persistent
Challenge: Many mid-sized firms struggle to allocate sufficient budgets for compliance tools, audits, and GRC platform implementations. Economic pressures competing with compliance investments.
Impact: Inadequate GRC investment leads to reactive compliance approaches, increased audit findings, and potential regulatory penalties that exceed prevention costs.
Impact: Inadequate GRC investment leads to reactive compliance approaches, increased audit findings, and potential regulatory penalties that exceed prevention costs.
10
Medium Impact
Technology Integration and Automation Opportunity
Challenge: Implementing AI-driven GRC tools while ensuring they meet regulatory requirements. Integration challenges between existing systems and new compliance technologies.
Impact: Poor technology integration can create compliance gaps, while successful automation can reduce compliance costs by up to 40% and improve risk detection capabilities.
Impact: Poor technology integration can create compliance gaps, while successful automation can reduce compliance costs by up to 40% and improve risk detection capabilities.
GRC Challenge Statistics for Saudi Companies
85%
Companies upgrading GRC frameworks by 2025
78%
Believe new compliance will impact operations
40%
Increase in compliance costs due to fragmentation
60%
Report inadequate internal GRC expertise
30%
Increase in operational costs from data localization
65%
Struggle with cybersecurity-operations balance
Success Stories: Overcoming GRC Challenges
Real-World Solutions
Saudi Bank Implementation
After receiving a SAMA warning, implemented a centralized GRC platform. Within six months, audit turnaround time dropped by 40%, and compliance score improved by 25%.
Healthcare Group Transformation
Faced challenges aligning with NCA guidelines. By adopting a cybersecurity roadmap aligned with ISO 27001 and NCA controls, they passed compliance audit in record time and secured a government partnership.
Saudi Aramco Innovation
Integrated AI-driven compliance tools to manage thousands of regulatory requirements efficiently, developing an in-house model for sustainable risk prioritization.
STC Group Digital Framework
Launched a dynamic governance framework aligning cybersecurity compliance with Vision 2030 objectives, creating a model for digital transformation governance.
Al Rajhi Bank Monitoring
Implemented real-time GRC monitoring to reduce regulatory incidents by 30% in just one year, demonstrating the value of proactive compliance management.
Strategic Solutions and Best Practices
Recommended Approaches
Unified GRC Platform Implementation
Invest in integrated GRC platforms that can handle multiple regulatory frameworks simultaneously, reducing compliance fragmentation and operational complexity.
Regulatory Matrix Development
Create comprehensive regulatory matrices aligning NCA regulations with SAMA’s cybersecurity framework to identify overlaps, gaps, and optimization opportunities.
AI-Driven Risk Management
Leverage artificial intelligence and machine learning for predictive risk analytics, automated compliance monitoring, and real-time threat detection.
Continuous Training Programs
Establish comprehensive training programs to build internal GRC expertise and create a risk-aware organizational culture aligned with regulatory requirements.
Third-Party Risk Frameworks
Implement robust vendor management programs with detailed assessment processes, monitoring capabilities, and clear contractual obligations for compliance.
ESG Integration Strategy
Develop comprehensive ESG frameworks with measurable goals, transparent reporting mechanisms, and alignment with Vision 2030 sustainability objectives.
Action Plan for 2025
Immediate Steps for Saudi Companies
- Conduct Comprehensive GRC Assessment: Evaluate current GRC maturity across all regulatory dimensions and identify critical gaps requiring immediate attention.
- Implement Unified GRC Technology: Select and deploy integrated GRC platforms that can handle multiple Saudi regulatory requirements while supporting international standards.
- Develop Regulatory Intelligence Capability: Establish systems for continuous monitoring of regulatory changes from SAMA, NCA, CMA, and other relevant authorities.
- Build Internal GRC Expertise: Invest in training programs and recruitment strategies to develop qualified internal compliance professionals with Saudi market knowledge.
- Create Cross-Functional GRC Governance: Establish governance structures that break down silos between risk, compliance, IT security, and business operations.
- Implement ESG Framework: Develop measurable ESG goals aligned with Vision 2030 and CMA disclosure requirements, with regular stakeholder reporting.
- Enhance Cybersecurity Governance: Align NCA Essential Cybersecurity Controls with SAMA requirements while building resilient cyber risk management capabilities.
- Optimize Third-Party Management: Implement comprehensive vendor risk management programs with clear compliance requirements and regular assessment protocols.
