INTRODUCTION

The Kingdom of Saudi Arabia (KSA) is the largest country in the Middle East and the twelfth largest in the world.^[651] With an area of about 2,250,000 km^[652] and a population of approximately 32 million people,² it occupies most of the Arabian Peninsula.^[653] It is the birthplace of Islam and the guardian of the Islamic holy places, Makka and Madinah.^[654] The foundation of the Constitution of the KSA, its national laws,^[655] and to some extent its foreign policy, are premised on strict Islamic/Shari’ah^[656] laws.^[657] Despite this, and because of its growing affluence, the KSA has begun embracing a free market economic policy, loosening its controls over certain economic sectors, such as telecommunications and public utilities.^[658]

The KSA is a member of the Gulf Cooperation Council (GCC), the Organization of the Petroleum Exporting Countries (OPEC)^[659] and the World Trade Organization^[660] (WTO).^[661] Being a member the KSA is committed to adhering to those organisations’ objectives in pushing for substantial economic reforms, including the removal of trade barriers and the promulgation of laws appropriate to such reform in regard to labour and investment.^[662] The GCC also prompts further developments as it aims to achieve coordination and interconnection between members in most areas (including economic, commercial, industrial and customs policies, as well as financial and monetary policies, even to eventually securing a joint currency).^[663] All of these developments have greatly facilitated the expansion of domestic corporate sectors, as well as attracting foreign investment into the country.

Significant developments recorded in business and corporate areas have combined to improve the current Saudi Arabian business environ­ment.^[665] The KSA, like any other growing economy, has witnessed a number of key developments over the years in its business environment that have played a role in facilitating competition and improving strat­egies to regulate business operations.

Within the last few years, the expansion of private corporations in the KSA has been clearly evident, as their numbers have substantially increased from tens to hundreds. The latest statistics published in 2017 show that by the end of 2016 the council of Ministers had approved the establishment of 43 insurance and reinsurance companies in the KSA, in addition to 228 insurance service provider to support insurance service,^[666] and the number continues to increase.^[667]

The ongoing economic liberalisation and structural policy reforms currently underway in the KSA^[668] create a need for effective legal regulation for Saudi businesses in the new business environment. This will ensure that any negative effects arising from the operation of corporations and the detrimental effects of globalisation will be properly addressed.^[669]

Criminal liability is one of the factors that can affect the activities of business entities. Planning by businesses to avoid incidents that result in criminal liability plays an important role in ensuring that business operations are carried out smoothly and within legal bounds at all times.^[670] The existence of criminal liability influences the operational strategies of companies, by shaping their operational environment as well as the strategies they develop.^[671] Liability improves not only a business’s functionality but also its internal rules and regulations.^[672] It is unfortunate, however, that generally the expansion of companies correlates with an increasing number of cases of corporate crimes, including corporate tax evasion, internal corporate investment violation or embezzlement.^[673] To discourage corporate law violation, Solaiman asserts that stringent and comprehensive national laws and regulation on corporate criminal liability are needed.^[674] Unlike corporations in the United States and in commonwealth countries such as Australia and Great Britain, those in the KSA are not subject to a wide range of strict liability criminal laws.^[675]

II.