Saudi Arabia approves new Commercial Transactions Law

Saudi Arabia has approved a new 271-article Commercial Transactions Law designed to modernize the Kingdom’s business environment and consolidate its legislative framework. Chaired by Crown Prince Mohammed bin Salman, the Cabinet approved the law, which will replace three existing pieces of legislation: the Commercial Law, the Commercial Papers Law, and the Commercial Books Law.

The new framework regulates commercial activities, merchants, commercial establishments, and various contracts, including commercial sales, supply sales, brokerage, and commercial agency agreements. It also governs commercial papers such as bills of exchange, promissory notes, and checks. Minister of Commerce Majid Al-Kassabi stated that the law complements the existing Civil Transactions Law to support the investment environment.

Key provisions include the ability for individuals aged 15 to practice commerce under specific regulations with guardian or court permission. The law also aims to enhance fair competition by preventing merchants from harming competitors and providing legal recourse for damages. The legislation will enter into force 180 days after its publication in the Official Gazette.