SPA
Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister in Saudi Arabia, has announced the Cabinet’s approval of the Civil Transactions Law, after all the needed measures were taken by the advisory Shura Council.
The Civil Transactions Law is the third specialized law approved. It was tabled for approval on February 8, 2021. The penal code for discretionary sanctions is yet to be approved.
Crown Prince said that the Civil Transactions Law is an anticipated major shift toward judicial reform, and was issued based on the latest legal trends and by applying the best international judicial practices, while adhering to Islamic law. He added that the Civil Transactions Law helps the Kingdom fulfil its international obligations and agreements it ratified to keep pace with modern life.
Crown Prince further said that the Civil Transactions Law entails protecting property, ensuring respect for the terms of a contract and its legality, and identifying rights, liabilities and clear legal positions. He added that the Civil Transactions Law will improve the business environment and increase its attractiveness, contribute to regulating the economy, will ensure financial rights, facilitate decisions regarding investment, enhance transparency, increase judgment prediction in civil transactions, reduce discrepancies in jurisprudence, help reach prompt justice and contribute to lowering the number of disputes arising from civil transactions.
Crown Prince said that the Civil Transactions Law was not issued as scheduled in Q4 of 2022 because further studies, audit and reviews had to be conducted by committees consisting of high-level experts. The committees were established due to the importance of the law, its sensitivity and its connection to regulations in many other fields, which requires tightening its provisions and ensuring their compatibility with the provisions of relevant regulations, in an effort to ensure the efficiency of the law.
The approval of the Civil Transactions Law is a reflection of Crown Prince’s constant and direct interest in the issue, out of his desire to see the legislative environment develop in a way that improves the judiciary, protects rights and enhances transparency, in accordance with the directives of the Custodian of the Two Holy Mosques.
The Civil Transactions Law provisions cover all contract-related matters, including terms, legality, impact, parties, rescinding, harmful acts and compensation rules. The law also addressed all forms of ownership and their provisions.