Civil Transactions Law – Breaking Legal News in Kingdom of Saudi Arabia
The Kingdom of Saudi Arabia (“KSA”) Council of Ministers has approved the Civil Transactions Law (“CTL”) in its session on 13 June 2023. The CTL represents a new era in KSA jurisprudence. Currently, the General Court (i.e., civil courts) of KSA only apply general principles of Islamic Shariah.
The CTL is a long-anticipated law that will be a major milestone in the legal system of KSA. Although based on general principles of Islamic Shariah, it was announced that the CTL was prepared according to latest and best legal practices. The KSA Crown Prince/Prime Minister stated that the CTL will be compliant with KSA-signed international agreements and treaties, and will support the protection of Intellectual Property.
The CTL is expected to address issues such as the validity, effects and termination or dissolution of all kinds of properties and contracts in KSA.
The next step is for the CTL to be issued by a Royal Decree, followed by publication in the Saudi Official Gazette.
GLA & Company will be following the unfolding of this major development and will issue updates and insights for its readers.
Author: Amr Hammad, Partner