Crown Prince: Civil transactions law ‘major shift’ in specialized laws system

Crown Prince Mohammed bin Salman announced the Cabinet’s approval on the civil transactions law, after completing the regulatory measures.

He also thanked the Saudi King for his support for developing the legislative system, which will be reflected on national development.

The Saudi Crown Prince said the civil transactions law was an awaited major shift within the specialized laws system. It was issued based on the latest legal trends and the best international practices in light of Islamic Shariah.

The law aims to ensure property protection, stability of contracts, determination of the sources of rights and liabilities, and clarity of legal positions, he added. This will be reflected positively on business environment.

Further, the Crown Prince explained that the law was not promulgated as scheduled in Q4 2022, to conduct more studies and reviews.

The civil transactions law is the third within the specialized laws system, which was announced on Feb. 8, 2021. The Penal Code for Discretionary Sanctions is only remaining under the planned legislative reforms.

The civil transactions law’s provisions cover contract parties, impacts, scope, validity and rescission, harmful acts and compensation rules. It also addressed all types of ownership.

Source : Argaam