Saudi Arabia Approves Commercial Transactions Law with 271 Articles
The Saudi Cabinet approved the Commercial Transactions Law comprising 271 articles, replacing three commercial laws and taking effect 180 days after its publication.
The Saudi Cabinet approved the new Commercial Transactions Law consisting of 271 articles, as part of a package of 15 decisions, according to Ajel platform today, Tuesday, October 27, 2026.
The new law replaces the Commercial Law, the Commercial Paper Law, and the Commercial Books Law, unifying provisions on commercial sales, supply sales, agency, and brokerage in a single text, thereby reducing fragmentation among old laws.
The law allows individuals who have reached the age of 15 to engage in commerce, provided they obtain permission from a guardian or court, a step that expands youth participation in commercial activity under specific controls.
The implementation of the law begins 180 days after its publication in the Official Gazette, a period that gives relevant entities time before its provisions take effect.
What do these terms mean?
Commercial Transactions Law: The legal framework regulating buying, selling, agency, and brokerage among traders, and specifying rights and obligations in these transactions.
Supply Sale: An agreement in which the seller commits to delivering quantities of goods in batches or at scheduled times, rather than a single deal.
Official Gazette: The publication in which the state publishes laws and regulations, and laws do not come into force until published in it.
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