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New Civil Transactions Law: A Milestone In Saudi Arabia’s Judicial And Economic Development


New Civil Transactions Law: A Milestone In Saudi Arabia’s Judicial And Economic Development


PARIS, France - Saudi Arabia’s Cabinet has enacted the Civil Transactions Law, a landmark move in the Kingdom’s judicial reform process, announced Crown Prince Mohammed bin Salman on Tuesday.


The Crown Prince, who is also the Prime Minister, expressed his gratitude to King Salman for his constant support for developing the legislative system, which will enhance national development and bring about progress and prosperity.


The Crown Prince said that the Civil Transactions Law is a long-awaited major shift toward judicial reform, and was drafted based on the latest legal trends and by applying the best international judicial practices, while adhering to Islamic law.


He added that the Civil Transactions Law enables the Kingdom to fulfill its international obligations and agreements it ratified to keep pace with modern life.


The Crown Prince further said the Civil Transactions Law aims to protect property, ensure respect for the terms of a contract and its legality, and define rights, liabilities and clear legal positions.


He added that the Civil Transactions Law will improve the business environment and increase its attractiveness, contribute to regulating the economy, ensure financial rights, facilitate decisions regarding investment, enhance transparency, increase judgment predictability in civil transactions, reduce discrepancies in jurisprudence, help reach prompt justice and reduce the number of disputes arising from civil transactions.


The Crown Prince said that the Civil Transactions Law was not issued as scheduled in Q4 of 2022 because further studies, audits, and reviews had to be conducted by committees consisting of high-level experts. The committees were established due to the importance of the law, its sensitivity, and its connection to regulations in many other fields, which requires tightening its provisions and ensuring their compatibility with the provisions of relevant regulations, in an effort to ensure the efficiency of the law.


The enactment of the Civil Transactions Law is a reflection of the Crown Prince’s constant and direct interest in the issue, out of his desire to see the legislative environment develop in a way that improves the judiciary, protects rights, and enhances transparency, in accordance with the directives of the King.


The Civil Transactions Law provisions cover all contract-related matters, including terms, legality, impact, parties, rescinding, harmful acts, and compensations rules. The law also addressed all forms of ownership and their provisions.

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