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The highlights of 2023
02 highlights
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2023
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25%
30%
35%
20%
15%
10%
05%
93.8%
%
78.2
%
17.9
Board Monitor Saudi Arabia
Our second look at incoming directors at listed companies in Saudi Arabia shows a preference for experienced board
members with CEO backgrounds.
2023
01 Overview
Vision 2030 has ushered in a period of accelerated growth and opportunity for the Kingdom of Saudi Arabia. This is set against a persistently challenging global economic context and local complexity to ensure that growth in the Kingdom is both sustainable and diversified.
Saudi companies are growing their presence in the region, and publicly listed companies are recognizing the increasingly important role that boards will play in delivering stakeholder value. At the same time, we are witnessing a significant change in the fabric of the business environment in Saudi Arabia, as an increasingly larger number of companies are looking to go public: 2022 was a record year in terms of initial public offerings (IPOs), with 49 listings. In 2023, there are at least 23 companies preparing for IPOs in Saudi Arabia's stock exchange. Our conversations with Saudi directors indicate that all these changes in the broader economy are filtering through to board level, with boards going through a period of rapid professionalization.
Pressure is growing on boards globally—not just in the Kingdom—to be more strategically dialed in, too, in order to help companies better anticipate threats and disruptions, not least from the stratospheric rise of AI, and to be more aligned with industry needs. Now is the time for companies to take stock of their mix of directors to ensure they have the range of perspectives needed to survive and thrive.
In this Board Monitor report, we examine how Saudi boards are changing their composition to meet the demands of this era of disruption and opportunity. Our analysis shows that there is still a great deal of opportunity for boards to become more diverse in terms of skills and industry experience.
01 Overview
Vision 2030: Accelerating growth and opportunity
02 highlights
There were 50 director appointments at Tadawul
companies in 2022—down from 53 in 2021.
04 Methodology
This report is part of Heidrick & Struggles’ long-standing study of trends in board composition in markets around the world. Produced by our global CEO & Board Practice, these reports track and analyze trends in non-executive director appointments to the boards of the largest publicly listed companies in Australia (ASX 200), Belgium (BEL 20), Brazil (BOVESPA), Canada (TSX 60), Colombia (COLCAP), Denmark (OMX Copenhagen 25), Finland (OMX Helsinki 25), France (CAC 40), Germany (DAX and MDAX), Hong Kong (Hang Seng), Ireland (ISEQ), Italy (FTSE MIB), Japan (TOPIX Core 30), Kenya (NSE Top 40), Mexico (BMV IPC), the Netherlands (AEX), New Zealand
(NZX 10), Norway (OBX), Poland (WIG 20), Portugal (PSI 20), Saudi Arabia (Tadawul), Singapore (STI 30), South Africa (JSE Top 40),
South Korea (KOSPI 50), Spain (IBEX 35), Sweden (OMX 30), Switzerland (SMI Expanded), the United Arab Emirates (ADX and DFM),
the United Kingdom (FTSE 350), and the United States (Fortune 500). Information about executives is gathered from publicly available sources, BoardEx, and a Heidrick & Struggles proprietary database.
ABOUT THE REPORT
03 References
2022
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Acknowledgments
Thanks to the following Heidrick & Struggles colleague for their contributions to this report: Suhas Anand, Richard Guest, and Maliha Jilani.
Now is the time for companies to take stock of their mix of directors to ensure they have the range of perspectives needed to survive and thrive.
10% of appointments went to women, up from 8% the previous year.
84% of seats went to Saudi nationals—down from 90% in 2021.
The number of first-time board members declined
7%—from 43% in 2021
to 36% in 2022.
For detailed market data and comparisons, please visit our interactive Board Monitor 2023 dashboard.
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35
2019
2020
2021
The average age of Saudi board appointees in 2022
was 50.1. This is down slightly from 51.8 in 2021.
2022
2021
2020
2019
67%
71%
8%
10%
50.1
51.8
58
58
2022
2021
2020
2019
90%
2021
84%
2022
43%
05 View PDF
View full PDF
1
2
There was a drop in the appointment of active board members, from 90% in 2021
to 72% in 2022.
49%
2019
43%
2020
90%
2021
72%
2022
References
¹ Nirmal Narayanan, “Saudi bourse has 23 new companies preparing for IPO in 2023: CMA chairman,” Arab News, February 12, 2023.
² Suhas Anand, Richard Guest, and Maliha Jilani, “Boards in Saudi Arabia: Upping their game for growth,” Heidrick & Struggles, forthcoming on heidrick.com
36%
2021
2022