JEDDAH: Crown Prince and Prime Minister Saudi Arabia Mohammed bin Salman (MBS) bin Abdulaziz Al Saud on Tuesday announced the Cabinet’s approval of the Civil Transactions Law after all the required steps were taken by the advisory Shura Council.
The Civil Transactions Law is the third specialized law being approved, that was tabled for approval on February 8, 2021. However, the penal code for discretionary sanctions is yet to be approved.
Saudi Crown Prince extended his thanks to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud for his constant backing for developing the legislative system, which would reflect on national development and bring about progress, prosperity and development to the country.
MBS said that the Civil Transactions Law was an anticipated significant shift toward judicial reform and was issued based on the latest legal trends adding that the process has proceeded by applying the best international judicial practices while adhering to Islamic law. He further said that the Civil Transactions Law would assist the Kingdom in fulfilling its international obligations and agreements it ratified to keep itself intact with the modern-day world.
Civil Transactions Law a Major Step
Mohammed bin Salman added that the Civil Transactions Law entailed protecting property, ensuring respect for the terms of a contract and its legality, and identifying liabilities, rights and clear legal status.
The Crown Prince further added that the Civil Transactions Law would improve the business environment to enhance its attractiveness, assist in regulating the economy, would ensure financial rights, facilitate decisions regarding investment, enhance transparency, reduce discrepancies in jurisprudence, increase judgment prediction in civil transactions, help access to timely justice and contribute to lowering the number of disputes arising from civil transactions.
MBS said that the Civil Transactions Law was not issued as scheduled in Q4 of 2022 because further studies, audits and reviews had to be tackled by committees comprising 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 needs tightening its provisions and ensuring their compatibility with the provisions of relevant regulations, a move to ensure the efficiency of the law.
The Civil Transactions Law provisions cover all contract-related matters, including terms, legality, parties, rescinding, impact, harmful acts and compensation rules. The law also addressed all forms of ownership along with their provisions.
