Saudi Arabia publishes new Commercial Transactions Law

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The official Umm Al-Qura Gazette published on Friday, Nov. 13, the details of Saudi Arabia's new Commercial Transactions Law, which sets out provisions governing commercial activities, transactions and traders' obligations. The law will come into force 180 days after its publication in the official gazette.

The law stipulates that its provisions apply to commercial activities regardless of the status of the person conducting them or the method used, whether electronic or traditional. It also applies to traders, without prejudice to specific legal provisions.

Article 6 identifies several activities classified as commercial when carried out professionally, including securities trading, banking and financing activities, insurance, commercial agencies, purchasing real estate for resale at a profit, manufacturing, construction contracting and information technology.

The law allows individuals aged 15 and above to engage in commercial activities with the authorization of their guardian or trustee, or the court if their guardian or trustee refuses to grant permission. Their liability for commercial obligations is limited to the assets invested in their business.

The law also regulates the transfer of commercial establishments and their branches. Article 23 stipulates that any transfer of a commercial establishment or an independent branch will not be enforceable against third parties unless it is registered in the Commercial Register and the relevant parties are notified.

The law also includes provisions governing commercial obligations and accounting records, as well as negotiable instruments, including bills of exchange, promissory notes and checks.

Regarding checks, the law stipulates that anyone who issues a check without sufficient funds, withdraws the funds covering it after issuance, or deliberately draws it in a manner that prevents its payment shall be subject to imprisonment for up to three years and a fine of up to SAR 50,000, or either penalty.

The penalties increase in cases where the offense is repeated within three years of the date of the ruling, with imprisonment for up to five years and a fine of up to SAR 100,000, or either penalty.

The law also imposes a fine of up to SAR 500,000 on any bank that violates a court order prohibiting it from issuing a new checkbook.

Under its final provisions, the new law repeals the Commercial Court Law (Commercial Law), the Negotiable Instruments Law and the Commercial Books Law.

The law also requires the Minister of Commerce to issue regulations governing accounting records within 180 days of its publication. These regulations will come into force alongside the new law.

According to Argaam data, the Saudi Cabinet approved the Commercial Transactions Law during its session held on Oct. 27, 2026.