Commercial Transactions Law unifies commercial regulations in a single document for first time

RIYADH —The Commercial Transactions Law, approved by the Council of Ministers on Oct. 27, establishes a comprehensive legislative framework that, for the first time, consolidates the provisions governing commercial sales, supply sales, commercial agencies, and brokerage into a single document. Abdulrahman Al-Hussein, spokesperson of the Ministry of Commerce, explained that the law introduces key updates in three main areas. First, it permits minors aged 15 and above to engage in commercial activities with the authorization of their guardian or custodian, or the court. Second, it safeguards fair competition among merchants, granting those who suffer harm the right to approach a court to seek an end to the harmful practices and claim compensation. Third, it regulates accounting records and ensures their proper maintenance, while exempting certain categories of merchants from the obligation to maintain such records.Al-Hussein pointed out that the law will enter into force 180 days after its publication in the official gazette. Upon implementation, it will replace three existing regulations: the Commercial Law, the Commercial Papers Law, and the Commercial Books Law.