Saudi Arabia's New Commercial Transactions Law Explained

Oct 30, 2026•2 min read

Saudi Arabia has introduced a new Commercial Transactions Law that updates and consolidates a wide range of business rules affecting merchants, companies, and traders across the Kingdom. The law contains 271 articles and will replace the earlier Commercial Law, Commercial Papers Law, and Commercial Books Law once it enters into force.

The new framework brings together rules on merchants, commercial activities, accounting records, commercial sales, supply sales, commercial agencies, brokerage, and commercial papers under a single, modernized system. It takes effect 180 days after its publication in the Official Gazette, giving businesses time to prepare.

What changes for businesses

One of the most notable updates is that accounting records may now be kept electronically or on paper. Records should be maintained primarily in Arabic, with another language also permitted alongside it. Certain categories of merchants are exempt from the requirement to keep accounting records.

The law also allows individuals aged 15 or older to carry out commercial activities, provided they obtain authorization from a guardian, custodian, or the court. In addition, it introduces protections against harmful anti-competitive practices, giving affected merchants the ability to seek court intervention and compensation.

For residents and expats running small businesses, the move toward electronic record-keeping and clearer rules on commercial activity reflects the Kingdom's broader push to simplify and digitize business services. Current commercial-registration services remain available electronically through the Saudi Business Center using National Unified Access.

Business owners are encouraged to review the new provisions ahead of the effective date to ensure their records and practices align with the updated requirements.

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