Commerce Ministry outlines eight pillars of new commercial transactions law

Saudi Arabia’s Ministry of Commerce has revealed details of the new Commercial Transactions Law, highlighting its key pillars for regulating the Kingdom’s economic and commercial environment and defining the rules governing business activities and commercial obligations.

In an official statement, the ministry said the law covers eight comprehensive regulatory pillars: First, General Provisions, which set out the scope, application rules, and general principles for commercial transactions. Second, Commercial Activities, detailing individual commercial acts and professional commercial activities. Third, the Merchant, which defines the concept of a merchant and the criteria for acquiring merchant status.

According to the ministry, the fourth pillar addresses the Store, including its definition and components. Fifth, Commercial Obligations, which outlines the rules and obligations applicable to merchants. Seventh, Commercial Registers, which covers the regulations for their organization and the adopted accounting system.

The seventh pillar concerns Commercial Contracts, including commercial sales contracts, supply contracts, commercial agency agreements, and brokerage contracts. The eighth pillar covers Commercial Papers, such as promissory notes, bills of exchange, and checks.

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