RIYAHD — Saudi Crown Prince and Prime Minister Mohammed bin Salman said that the Civil Transactions Law represents a remarkable transformation within the system of specialized legislations and judicial reforms. He announced that the law, approved by the weekly session of the Council of Ministers on Tuesday, constitutes one of the four key judicial reform legislations being introduced in the Kingdom. "The law was prepared in a way taking advantage of the latest legal trends and the best international judicial practices, in light of the provisions of the Islamic Shariah and its purposes. The law comes in harmony with Saudi Arabia's international obligations in light of the agreements that have been ratified by it so as to keep pace with the developments of contemporary life," he said. The Crown Prince thanked Custodian of the Two Holy Mosques King Salman for his constant support for developing the Kingdom's legislative system, which will reflect on the national development process, ensuring progress and prosperity in all walks of life. He said that the law was approved by the Cabinet after completing the regular procedures to carry out extensive studies by the Shoura Council as per law. The Crown Prince noted that the Civil Transactions Law is the third of the four key judicial reform legislations, and that also include the previously announced Civil Status Law, and the Law of Evidence, in addition to the proposed Penal Code for Discretionary Sentences. Earlier on February 8, 2021, the Crown Prince had unveiled plans to introduce these four key legislations as part of the measures to reform judicial institutions as well as to improve the "legislative environment" in the Kingdom. These laws are widely considered as a new wave of judicial reforms in the Kingdom as they are instrumental in raising the quality of the Kingdom's legislative system and enhance the efficiency of the judicial institutions. The Crown Prince said that the law was based on foundations represented by protection of property, stability and validity of contracts, identification of sources of rights and obligations and their effects, and clarity of legal positions. "The law will have positive impact on the business environment and increase its attractiveness, and will also contribute to regulating economic movement and the stability of financial rights, in addition to facilitating decision-making with regard to investment. It will also enhance transparency and increase the ability to predict judgments in the field of civil transactions and reducing discrepancies in judicial reasoning to reach prompt justice, apart from contributing to bringing down disputes," he said. The Crown Prince indicated that it was required for the concerned department to issue the Civil Transactions Law at a date different from the one previously scheduled for it, which is the fourth quarter of 2022, in order to carry out more studies, scrutinize and review its provisions. Panels comprising of high-level experts have been constituted for this purpose. "This is in view of the importance of the law, its sensitivity, and its association with many laws, different fields, and various activities, which requires tightening its texts, and ensuring the compatibility of its provisions with the provisions of other relevant regulations and their compatibility with these fields and activities. This was part of an effort to improve it and ensure the efficiency of the slaw in achieving the goals for which it was drafted," he added. It is noteworthy that the issuance of the Civil Transactions Law, which comes in line with the continuous and direct follow-up of the Crown Prince, aimed at developing the legislative environment in a way that guarantees raising the efficiency of laws, protecting rights, enhancing transparency, and raising the efficiency of the judicial facility, in accordance with the directives of King Salman. The Civil Transactions Law includes provisions that define everything related to contracts, such as: the elements of the contract; its validity; its effects among the contracting parties; the provisions related to its invalidity and termination; and the provisions of the harmful act and the rules for compensation for it. The statutory texts of the law also dealt with all forms of ownership and their provisions.
