Regulatory update / Commercial Transactions Law
Saudi Arabia approves new rules for business transactions
Saudi Arabia has approved a new Commercial Transactions Law covering sales, supply agreements, agents, payment documents and business records. If you run a company here or are preparing to open one, these are the parts of your business to review as the law comes into effect.
- Main areas
- Contracts, payments and records
- Who it matters to
- Existing businesses and new founders
- When it starts
- 180 days after Gazette publication
01 / Check your business
What changes for businesses?
Contracts with customers, suppliers and agents
Start with the agreements you use to sell goods, supply customers or work through agents and brokers. These relationships fall within the new law. Review the published rules with a Saudi lawyer before changing the terms you use.
Cheques and other payment documents
Cheques, bills of exchange and promissory notes are covered too. A promissory note is a written promise to pay. If you accept one from a customer or give one to a supplier, include it in your review.
Business and accounting records
The announcement allows paper or electronic accounting records and mentions exemptions for some traders. Whether your company qualifies needs checking. An exemption from commercial bookkeeping rules should not be treated as an exemption from tax or invoicing duties.
Fair competition
The law also includes rules on fair competition and compensation for harm. The published wording will matter when assessing a dispute with another business or the remedies available.
A route for younger entrepreneurs
Young people aged 15 or over may trade with permission from a guardian or a court, subject to the law’s conditions. It is not automatic permission to open any type of business.
02 / Your next step
What should you do?
Already running a business?
List your main customer, supplier and agency agreements, the payment documents you use and where you keep your records. These are the documents to have ready for a review.
Planning to set up in Saudi Arabia?
Decide who will handle contracts, payment terms and accounting records before trading starts. Keep registration, investment and sector-licence requirements in your setup plan.
Before changing your documents
Ask qualified Saudi legal counsel to check the published law and how it applies to your agreements. Approval of the law alone does not mean every contract needs rewriting.
03 / Check the source
Sources & supporting detail
Based on the Ministry of Commerce announcement of 27 October 2026. It explains the main topics; a full comparison with the old rules needs the published law.
More detail: payment terms, records and the laws being replaced
Contracts and commercial papers
The law covers sales, supply, agency and brokerage contracts. It also covers commercial papers: cheques, bills of exchange and promissory notes.
- An equipment supplier, for example, may use a supply contract and accept a promissory note. Both belong in the same review.
- Check the final wording and any rules for existing agreements with qualified Saudi legal counsel.
Records and competition
The announcement covers paper and electronic accounting records, exemptions for some traders, fair competition and compensation for harm.
Check any bookkeeping exemption separately from tax, VAT, e-invoicing and other reporting duties.
Young entrepreneurs
A young person aged 15 or over may trade with permission from a guardian, a guardian appointed through a will, or a court. The final conditions still need checking.
This is not automatic permission for every 15-year-old to open any business.
Which existing laws are being replaced?
The Ministry names the Commercial Law (النظام التجاري), Commercial Papers Law and Commercial Books Law. It does not name the Commercial Courts Law (نظام المحاكم التجارية). The new law has 271 articles.
The 180-day period runs from Official Gazette publication, not from the announcement.
Need help applying this to your business?
We can help you organise your Saudi company setup and day-to-day business administration. A qualified Saudi lawyer should advise on contract wording and legal rights.