Saudi Arabia's new cooperatives law gives existing cooperative associations a 12-month window to bring their operations in line with the updated framework, according to reports carried by Okaz and oth
Under the rules, cooperatives may not distribute surplus profits before covering their losses, Okaz reported. The law also requires setting aside 20 percent for reserves and lists six cases in which a
The one-year period is framed as a correction window — time for established associations to adjust their bylaws, finances and governance to match the new requirements rather than face penalties immedi
The reserve requirement and the restriction on profit distribution point to a focus on financial stability: associations are expected to absorb losses first and build a buffer before any surplus is sh
What to watch next is how the supervising authority handles the transition — whether it issues implementing guidance, and how many of the Kingdom's existing associations seek approval for amended byla
New cooperative associations law gives existing groups 12 months to align, bars profit payouts until losses are covered,