Islamic corporate governance in Saudi cement firms

Drawing on Islamic corporate governance (ICG), Shariah governance and legitimacy perspectives, this research examines how Saudi cement firms present Islamic compliance when external Islamic screening bodies classify listed firms through primary activity and financial thresholds. Prior research has concentrated mainly on Islamic banks and formal Shariah governance structures (Fatmawati et al., 2022; Lestari et al., 2025), leaving non-financial firms less examined. A qualitative content analysis was conducted for the full population of 14 Saudi listed cement firms using 2023 and 2024 annual reports, founding-document disclosures, regulatory documents and classifications published by selected Islamic bodies. The findings show that the firms do not self-identify as Islamic in their founding documents, while several reports disclose obligatory zakah and optional Islamic financing formulas such as Murabaha and Tawarruq. External classifications vary across Islamic bodies and years, particularly for firms with mixed financing, deposits, or revenue structures. The research contributes by distinguishing ICG as a governance framework from Shariah screening as a market classification practice and by showing the limits of annual-report disclosure for assessing Islamic legitimacy in non-financial sectors.