Environment minister joins boards of Almarai and Nadec

Environment, Water and Agriculture Minister Abdulrahman AlFadley has been appointed as a non-executive member of Almarai and Nadec’s boards, according to two separate disclosures to Tadawul (here and here). AlFadley previously led Almarai as CEO for 15 years before becoming minister in 2015. He also chairs Salic and the Agricultural Development Fund, core institutions in the Kingdom’s food policy and investment framework.

What it means: The move could improve coordination with state directions and encourage cooperation between the companies, though a merger is unlikely, Asharq Business quotes analyst Majid Al Khalidi as saying.

Past precedents: Similar arrangements exist in Saudi Arabia, such as three ministers serving on Aramco’s board. AlFadley’s role does not constitute a conflict of interest, as the state acts as a guide and supervisor for key companies, said Financial advisor Sarah Al-Muaither.