Al-Qasabi: Commercial Transactions Law allows those aged 15 to engage in trade
RIYADH — The Commercial Transactions Law, approved by the Cabinet on Tuesday, permits those aged 15 years to engage in trade, provided they obtain authorization from their guardian or custodian, or from the court. Minister of Commerce Dr. Majid Al-Qasabi said that this is under a new regulatory fram
RIYADH — The Commercial Transactions Law, approved by the Cabinet on Tuesday, permits those aged 15 years to engage in trade, provided they obtain authorization from their guardian or custodian, or from the court. Minister of Commerce Dr. Majid Al-Qasabi said that this is under a new regulatory framework governing commercial activities in Saudi Arabia. The new law will come into force 180 days after its publication in the official gazette.The minister said that the law regulates various aspects of commercial contracts, including commercial sales, supply sales, brokerage, and commercial agency. It complements the Civil Transactions Law, helping foster a more conducive environment for commerce and investment. The Ministry of Commerce stated that the law comprises 271 articles governing commercial activities, the status of merchants, the establishment of commercial establishments, merchants' obligations, accounting records, contracts, and commercial papers, including bills of exchange, promissory notes, and checks. It replaces three existing laws: Commercial Law, Commercial Papers Law, and the Commercial Books Law. The ministry explained that the law redefines the term "merchant," specifying which activities acquire commercial status through a single transaction and which require professional expertise to qualify as commercial activities. It also regulates fair competition among merchants, prohibits practices that harm competitors, and allows affected parties to seek court injunctions to prevent such harm and claim compensation. The law exempts certain categories of merchants from the obligation to maintain accounting records. It also permits such records to be maintained electronically or on paper in Arabic, while allowing the use of another language. These provisions aimed to facilitate business operations and reduce commercial disputes. For the first time, the law consolidates provisions governing commercial sales, supply sales, commercial agency, and brokerage into a single legislative instrument. This is intended to safeguard the rights of all parties to commercial transactions, protect small and medium-sized enterprises (SMEs), and support their growth through commercial contracts and agency arrangements.