RIYADH — Saudi Arabia published officially on Monday the Civil Transactions Law, which contains 721 articles, aimed at regulating the provisions of contracts and financial transactions between individuals so as to increase economic activity and enhance investment opportunities in the Kingdom. This makes it the largest law in the country's history, and that will come into force on December 16, 2023. In its final version, the salient features of the law contain a total of 41 basic rules that "apply to the extent that they do not contradict the legal texts, taking into account of their nature and the conditions and exceptions for each of them," according to Umm Al-Qura, the official newspaper of Saudi Arabia. These rules include the following: matters in their intent; the lesson in contracts is in meanings and not in words; specification by custom is like specification by text, and what is known by custom is like conditional, and what is usually abstained is like what is abstained in reality, and certainty does not disappear with doubt, and the principle remains what it was. The rules mentioned that the harm can be removed and the greater harm is repelled by the lesser harm, and preventing harm takes precedence over bringing benefits. The necessities are estimated according to their measure, while compulsion does not invalidate the right of others. According to the rules, ignorance about the ruling is not an excuse in complying with it. It is noteworthy that the Council of Ministers approved on June 13 the Civil Transactions Law, which aims to regulate the provisions of contracts and financial dealings in daily public life. The law is regarded as a landmark achievement in the Kingdom's ongoing judicial reforms. The new law regulates the provisions of contracts and financial transactions in daily public life, such as regulating the sale and lease contracts and partnerships. There are specific provisions in the law to compensate damages in the event of an act by a person causing harm to others, such as property damage or self-harm. The law also clarifies the rules that determine the amount of compensation to which the injured person is entitled to; setting rules and provisions that guarantee creditors the fulfilment of their rights from debtors and balancing the interests of creditors and those of debtors. The law will contribute to regulating economic movement, stabilizing financial rights, facilitating investment decision-making, and enhancing transparency. The advantages of the law also include increasing the ability to predict judgments in the field of civil transactions, and reducing discrepancies in jurisprudence in order to achieve prompt justice, in addition to contributing to bringing down disputes.
