The Saudi Cabinet approved the Commercial Transactions Law on 27 October 2026, a comprehensive framework that reorganizes how commercial activity is governed across the Kingdom. The approval came during a session in which the Cabinet issued 15 decisions.
The new law consists of 271 articles covering a wide range of commercial matters, including commercial businesses, merchants, commercial stores, accounting records, commercial contracts, and commercial papers. It also sets out rules for commercial sales, supply contracts, commercial agency, and mediation.
One notable provision allows a person who has reached 15 years of age to conduct commerce, provided they obtain authorization from a guardian, trustee, or the court. This opens the door for young entrepreneurs to enter business activity under a clear legal structure.
The law replaces three earlier pieces of legislation: the Commercial Code, the Commercial Papers Law, and the Commercial Books Law, consolidating them into a single modern framework.
For residents and business owners, the update aims to provide greater clarity and consistency in commercial dealings. The law will enter into force 180 days after its publication in the Official Gazette, giving merchants and companies time to align their practices with the new requirements.
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