Saudi Arabia approves law to consolidate commercial rules

Saudi Arabia’s cabinet has approved a Commercial Transactions Law meant to bring the core rules of doing business into one framework. Its 271 articles replace three separate laws governing commercial activity, payment instruments and commercial books, while setting rules for who counts as a trader, their obligations, accounting records and commercial contracts. It also puts rules for commercial sales, supply agreements, commercial agencies and brokerage into a single law, rather than having those contracts governed separately. The Ministry of Commerce says the consolidation should make outcomes more predictable and reduce disputes, particularly for small and medium-sized businesses negotiating or expanding through contracts. The law will take effect 180 days after publication in the Official Gazette.