Corporate governance in the Kingdom of Saudi Arabia has undergone meaningful transformation as regulatory frameworks evolve and investors demand greater transparency and value-driven oversight from organisations. Within this landscape, internal audit consultancy services emerge as a consequential element in shaping governance practices that align with global benchmarks and meet heightened stakeholder expectations. Furthermore, the role of Advisory Companies in Saudi Arabia is increasingly scrutinised as organisations look for deeper insights, robust risk management and strategic guidance that drives sustainable performance and accountability.
In 2025 and leading into 2026, Saudi Arabia’s corporate governance regulations have been updated to reinforce the role of internal audit functions. According to the OECD Corporate Governance Factbook 2025, amendments introduced by the Capital Market Authority require all listed companies to establish internal audit units with defined authority, audit planning and reporting provisions designed to strengthen risk oversight and internal control frameworks. These changes are not merely compliance obligations; they reflect a broader shift towards embedding audit functions that supply independent assurance and advisory support within governance systems. The rise of internal audit consultancy services has complemented this trend, offering specialised expertise to organisations whose in-house resources may struggle to keep pace with regulatory evolution and dynamic risk environments. In this context, Advisory Companies in Saudi Arabia are becoming pivotal partners in interpreting regulation, enhancing governance practices and delivering strategic insight that aids board level decision-making.
The Evolution of Corporate Governance in Saudi Arabia
Corporate governance in Saudi Arabia has expanded beyond traditional compliance to include risk management, strategic oversight and sustainability integration. Regulators such as the Capital Market Authority (CMA) and Saudi Central Bank (SAMA) have actively strengthened governance frameworks through updated corporate governance regulations and compliance principles that elevate internal audit expectations. These reforms aim to bring Saudi governance practices closer to global standards by mandating regular audit committee engagement, periodic internal audit reporting and structured governance oversight of internal controls.
The regulatory momentum is matched by growing investor focus. The Tadawul Saudi Stock Exchange, one of the largest markets in the region, saw its market capitalisation rise to approximately nine trillion Saudi riyals by late 2025, signalling heightened scrutiny from institutional investors and the need for transparent risk governance. This environment underscores why robust internal audit functions are now central to corporate governance frameworks across the Kingdom.
Internal Audit’s Transformative Role
Traditionally, internal audits focused on compliance and financial controls. However, in the current era of rapid digital adoption, regulatory sophistication and sustainability prioritisation, the internal audit function is evolving into a strategic enabler of governance excellence. Today’s internal audit professionals assess risk management frameworks, support board strategic oversight and provide insights that shape organisational decisions beyond routine assurance tasks.
A clear illustration of this evolution is the sixth Internal Audit Forum held in Riyadh in 2025, which attracted over five hundred fifty audit leaders and showcased AI-driven tools designed to improve audit performance and predictive risk analysis. These tools illustrate how technology is enhancing audit capabilities across sectors, enabling organisations to detect potential vulnerabilities ahead of time and improve governance outcomes.
In parallel, industry surveys point to gaps that still persist in IT audit integration and technological expertise within audit teams in Saudi organisations. Approximately twenty-six percent of firms do not include IT audits in their internal audit plans, and forty-four percent lack in-house cybersecurity audit capabilities, highlighting the ongoing need for expertise that extends into digital risk and data-driven assurance.
Internal Audit Consultancy Services: A Strategic Catalyst
While in-house audit teams are vital, many organisations leverage internal audit consultancy services to access specialised skills, augment their risk coverage and design robust audit frameworks that are compliant with evolving Saudi governance mandates. These services encompass strategic risk assessment, digital audit transformation, compliance optimisation and integration of ESG (Environmental, Social and Governance) assurance all areas where internal capability may be limited, yet organisational expectations are rising rapidly.
Consultants help bridge capability gaps where audit teams may lack specific technical expertise such as AI risk oversight, sustainability reporting assurance or emerging regulatory requirements. By working with experienced audit consultants, companies can deploy audit plans that deliver predictive insights, elevate risk monitoring frameworks and align assurance activities with corporate strategic objectives.
Advisory Companies in Saudi Arabia: Beyond Compliance
Advisory companies in Saudi Arabia play a complementary role in strengthening governance and audit effectiveness. These firms provide a broader suite of services including risk management frameworks, operational optimisation, data analytics implementation and strategic board advisory support. They help translate audit outcomes into actionable governance enhancements and support organisations in meeting the requirements of regulators, investors and international standards.
For organisations navigating complex commercial landscapes and regulatory expectations, selecting the right advisory partner can accelerate capability building and embed continuous improvement into governance routines. In 2025, the fraud detection and prevention market in Saudi Arabia was valued at an estimated four hundred seventy million US dollars, reflecting organisational commitment to analytical approaches that support proactive risk identification and internal control effectiveness.
Quantitative Trends Shaping Internal Audit’s Influence
To understand how internal audit is shaping governance practices, it is important to consider key quantitative trends:
• Market capitalisation and investor expectations: Tadawul’s valuation near nine trillion Saudi riyals indicates a corporate landscape under intense investor scrutiny, requiring high standards of governance and risk assurance.
• Audit capability adoption metrics: Roughly twenty-eight percent of internal audit functions rate their data analytics capability as advanced, while over ninety percent acknowledge this competency as essential for strategic performance assurance.
• Digital integration: Surveys reveal that a significant proportion of organisations have begun adopting advanced digital tools within audit processes, yet gaps in IT audit incorporation reveal areas where consultancy solutions are essential.
These figures reflect both the progress and the remaining challenges in embedding internal audit within governance structures that deliver strategic value.
Challenges and Opportunities
Despite these positive trends, challenges persist. Many organisations struggle to recruit and retain audit professionals with advanced technological and strategic skills. In response, audit functions are increasingly partnering with external specialists and internal audit consultancy services to supplement internal capability, accelerate digital adoption, and enhance audit quality and reach.
Additionally, the complexity of emerging risks from cybersecurity to climate related exposures demands that audit teams evolve beyond traditional assurance models. Embedding risk-based, data-driven audit methodologies that align with enterprise risk management frameworks presents an opportunity for organisations to proactively manage threats while strengthening governance resilience.
Innovation in audit technology, regulatory expectations for structured reporting and an expanding emphasis on non-financial assurance such as ESG all create space for audit functions to become strategic drivers within governance frameworks.
Case for Integrated Governance Models
The most effective corporate governance models integrate internal audit as a strategic partner alongside risk management, compliance, and executive leadership. In such models, internal audit provides continuous assurance and advisory insights that help boards monitor emerging risks, guide strategic initiatives and strengthen accountability across the organisation. The impact of this integration is visible in organisations that actively use audit insights to inform decisions related to digital transformation, capital planning and corporate performance metrics.
Beyond compliance assurance, internal audit and strategic advisory together enhance organisational agility, build investor trust and support sustainable growth trajectories that reflect global best practice benchmarks.
Future Outlook for 2025 and Beyond
Looking ahead into 2026, internal audit’s role within corporate governance in Saudi Arabia is poised to expand significantly. Regulatory expectations will continue to mature, requiring not only design of audit functions but also measurable impact on organisational performance and risk outcomes. To meet these demands, organisations will rely on internal audit consultancy services and advisory expertise to strengthen governance practices, innovate audit methodologies and integrate advanced analytics into control frameworks.
The strategic value of internal audit in Saudi corporate governance will be realised not merely through compliance adherence but through its capacity to anticipate risk, inform leadership decisions and underpin sustainable business excellence. In this context, Advisory Companies in Saudi Arabia will remain central partners, guiding organisations through complex governance landscapes while embedding resilience, transparency and future-ready audit approaches.
By embracing internal audit as a pivotal component of corporate governance strategy supported by specialised consultancy services and insightful advisory partnerships Saudi organisations can strengthen stakeholder confidence, optimise risk and control environments, and ensure alignment with global governance standards as the Kingdom advances on its economic and regulatory transformation journey.
Finance Advisory 