Saudi Arabia approves new Commercial Transactions Law and allows trade from age 15

The Saudi Cabinet, in its session today, Tuesday, 27 October 2026, chaired by Crown Prince Mohammed bin Salman, approved the Commercial Transactions Law — a comprehensive legislative framework that regulates commercial activities, the merchant, the shop and related obligations, contracts and commercial papers. The law will take effect 180 days after its publication in the official gazette.

271 articles replace three previous laws

The law comprises 271 articles that define the nature of commercial activities, the merchant, the shop, merchants’ obligations, accounting records and commercial contracts, in addition to provisions on commercial papers — including bills of exchange, promissory notes and checks. It replaces three previous laws: the Commercial Law, the Commercial Papers Law and the Commercial Books Law.

Permitting trade from age 15

Minister of Commerce Majid Al‑Qasabi explained that the law allows those who have reached the age of 15 to engage in commerce with permission from their guardian, custodian or the court. It also redefines the merchant and specifies which acts are considered commercial when performed once and which acts must be carried out habitually to be deemed commercial.

Sale, supply, agency and brokerage in a single document

For the first time in a single legislative document, the law organizes the rules for commercial sale, sale by supply, commercial agency and brokerage, and it is legislatively complementary to the Civil Transactions Law. It also strengthens legitimate competition among traders, prohibits causing harm to competitors, and allows an injured party to go to court to seek an injunction to stop the harm and to claim compensation.

Accounting records in Arabic or another language

The law exempts certain categories of traders from keeping accounting records and permits records to be kept electronically or on paper in Arabic, while allowing the option of keeping them in another language. This increases predictability of rules in commercial dealings and reduces disputes.

Protection for small and medium enterprises

According to the Minister of Commerce, the law provides protection for the transactions of traders and small and medium enterprises and helps them expand through concluding commercial contracts and acting by agency, as part of stimulating the Kingdom’s commercial and investment environment. These provisions also cover companies and traders from outside the Kingdom, including Iraqis, who conclude commercial contracts or agencies in the Saudi market.

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