HRH Crown Prince: Civil Transactions Law Is a Major Shift in Judicial Reform

Jeddah, June 14, 2023, SPA -- His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al-Saud, Crown Prince and President of the Council of Ministers, announced the Council of Ministers' approval of the Civil Transactions Law (i.e., Civil Law) following its review by the Shura Council in accordance with its Law.
The Civil Transactions Law is the third law of the collection of specialized legislations announced on February 8, 2021. The remaining law of the collection is the Penal Law.
HRH the Crown Prince expressed his gratitude to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud, for his constant support of the development of the legislative system which will contribute to national development in all fields leading to further progress and prosperity.
HRH the Crown Prince indicated that the long-awaited Civil Transactions Law represents a major shift in specialized legislation. The Law was prepared in accordance with the latest international legal trends and judicial best practices and in light of the provisions and aims of Sharia. It took into consideration the obligations of the Kingdom which stem from the international agreements to which the Kingdom is party, as well as the developments of modern society.
His Highness explained that the Law is motivated by the need to enhance the principles of property ownership protection, stability and validity of contracts, identification of the sources and effects of rights and obligations, and clarity of legal positions. It will positively impact the business environment, making it more attractive, and will contribute to the regulation of economic activities and the stability of financial rights and facilitate investment decision-making, in addition to enhancing transparency and increasing the predictability of judicial rulings related to civil transactions and minimizing discrepancy in judicial discretion in order to achieve speedy justice, as well as lowering cases of disputes.
His Highness indicated that the issuance of the Civil Transactions Law was originally scheduled during the fourth quarter of 2022, but due to the significance of the Law and the relation it has with several other laws and its relevance to various fields and activities, its issuance was rescheduled in order to conduct further study and review by committees comprising experts of high caliber to ensure that its provisions are consistent with the provisions of relevant laws and suitable for related fields and activities and that the Law is efficient in achieving its purposes.
The issuance of the Civil Transactions Law is the result of the continuous and direct guidance of His Highness which aimed at developing the legislative environment to enhance the efficiency of laws, protection of rights, level of transparency, and efficiency of the judicial system, in accordance with the directives of the Custodian of the Two Holy Mosques.
The Civil Transactions Law includes provisions covering all matters related to contracts, including elements of the contract, its validity, rights and obligations, provisions related to its invalidity and rescission, and provisions related to harmful act and compensation for such act, as well as provisions governing all forms of ownership.
--SPA