Number: M/191

Date: 1444/11/29 AH

By the grace of Allah the Almighty

We Salman bin Abdulaziz Al Saud

King of the Kingdom of Saudi Arabia

Based on Article (Seventy) of the Basic Law of Governance, issued by Royal Order No. (A/90) dated 27/8/1412 AH.

Based on Article (Twenty) of the Council of Ministers Law, issued by Royal Order No. (A/13) dated 3/3/1414 AH.

Based on Article (Eighteen) of the Shura Council Law, issued by Royal Order No. (A/91) dated 27/8/1412 AH.

After reviewing the Shura Council decisions No. (209/36) dated 29/10/1443 AH, and No. (261/37) dated 16/11/1444 AH.

After reviewing the Council of Ministers decision No. (820) dated 24/11/1444 AH.

We have decreed the following:

• First: Approval of the Civil Transactions Law, in the attached text.

• Second: The following shall be repealed as of the effective date of the Civil Transactions Law:

  • 1- Articles: (Two hundred and twelve) and (Two hundred and thirteen) and (Two hundred and fourteen) and (Two hundred and fifteen) and (Two hundred and sixteen) and (Two hundred and seventeen), and the phrase "The custodian shall be responsible for preserving and managing the money, and shall return it with the collected yield to the person proven to have the right thereto" appearing in the end of Article (Two hundred and eleven); of the Law of Civil Procedure, issued by Royal Decree No. (M/1) dated 22/1/1435 AH.

  • 2- Article (Twenty-five) of the Code of Law Practice, issued by Royal Decree No. (M/38) dated 28/7/1422 AH.

  • 3- Definitions of (Capacity, Minor, and Limited Capacity) contained in Article (One) of the Ethics of Research on Living Creatures Law, issued by Royal Decree No. (M/59) dated 14/9/1431 AH.

• Third: The following shall be amended as of the effective date of the Civil Transactions Law:

  • 1- Paragraph (3) of Article (Sixteen) of the Law of Commercial Courts, issued by Royal Decree No. (M/93) dated 15/8/1441 AH; to read as follows: "Disputes arising from partnership contracts stipulated in the Civil Transactions Law."

  • 2- The definition of (Real Estate by Designation) contained in Article (One) of the Movable Property Security Law, issued by Royal Decree No. (M/94) dated 15/8/1441 AH; to read as follows: "Real Estate by Designation: The movable property that its owner places in real estate that has an encumbrance for the service or permanent exploitation of the real estate, even if it is not physically connected to the real estate."

  • 3- Paragraph (8) of Article (Fifteen) of the Notarization Law, issued by Royal Decree No. (M/164) dated 19/11/1441 AH; to read as follows: "Acknowledgment of suretyship guarantee."

• Fourth: The provisions of the Civil Transactions Law shall not prejudice the following:

  • 1- Any treaty or agreement to which the Kingdom is a party with states, bodies, and international organizations.

  • 2- Any jurisdiction of public or judicial authorities established by laws.

  • 3- Procedures for registration, licensing, or any formal procedures prescribed by laws.

• Fifth: The provisions of the Civil Transactions Law shall apply to all facts that occurred before its effective date, except for the following:

  • 1- If there is a legal text or judicial principle related to the fact that contradicts the provisions of this law and is invoked by one of the parties.

  • 2- If the judgment relates to a statute of limitations period that began before the effective date of this law.

• Sixth: The provisions of the Civil Transactions Law and what is stated in paragraph (Fifth) of this decree shall apply to commercial transactions; provided that it does not contradict the nature of the commercial transaction, and insofar as there is no special provision in commercial laws.

• Seventh: The Prime Minister, ministers, and heads of relevant independent authorities - each in their respective jurisdiction - shall implement this decree.

  • Salman bin Abdulaziz Al Saud

In the name of Allah, the Most Gracious, the Most Merciful

Decision No. 820 dated 24/11/1444 AH

The Council of Ministers

After reviewing the correspondence received from the Royal Court No. (79827) dated 19/11/1444 AH, including the telegram of His Excellency the Minister of State and Member of the Council of Ministers for Shura Council Affairs, Chairman of the Main Committee for Preparing Judicial Legislation, Dr. Essam bin Saad bin Saeed No. (74) dated 28/11/1442 AH, regarding the draft Civil Transactions Law.

After reviewing the aforementioned draft law.

After reviewing the Royal Orders No. (5584) dated 26/1/1441 AH, and No. (34837) dated 5/6/1441 AH.

After reviewing the Royal Decree No. (13748) dated 25/2/1444 AH.

After reviewing the Code of Law Practice, issued by Royal Decree No. (M/38) dated 28/7/1422 AH.

After reviewing the Ethics of Research on Living Creatures Law, issued by Royal Decree No. (M/59) dated 14/9/1431 AH.

After reviewing the Enforcement Law, issued by Royal Decree No. (M/53) dated 13/8/1433 AH.

After reviewing the Law of Civil Procedure, issued by Royal Decree No. (M/1) dated 22/1/1435 AH.

After reviewing the Law of Commercial Courts, issued by Royal Decree No. (M/93) dated 15/8/1441 AH.

After reviewing the Movable Property Security Law, issued by Royal Decree No. (M/94) dated 15/8/1441 AH.

After reviewing the Notarization Law, issued by Royal Decree No. (M/164) dated 19/11/1441 AH.

After reviewing the minutes: No. (366) dated 11/8/1443 AH, No. (7) dated 6/1/1444 AH, No. (196) dated 23/6/1444 AH, and memoranda: No. (1908) dated 23/6/1444 AH, and No. (3172) dated 27/10/1444 AH, prepared by the Bureau of Experts at the Council of Ministers.

After reviewing the recommendation prepared by the Council of Economic and Development Affairs No. (4 - 41/43/D) dated 28/8/1443 AH.

After considering the Shura Council decisions: No. (209/36) dated 29/10/1443 AH, and No. (261/37) dated 16/11/1444 AH.

After reviewing the recommendation of the General Committee of the Council of Ministers No. (12009) dated 22/11/1444 AH.

It is decided as follows:

• First: Approval of the Civil Transactions Law, in the attached text.

• Second: The following shall be repealed as of the effective date of the Civil Transactions Law:

  • 1- Articles: (Two hundred and twelve) and (Two hundred and thirteen) and (Two hundred and fourteen) and (Two hundred and fifteen) and (Two hundred and sixteen) and (Two hundred and seventeen), and the phrase "The custodian shall be responsible for preserving and managing the money, and shall return it with the collected yield to the person proven to have the right thereto" appearing in the end of Article (Two hundred and eleven); of the Law of Civil Procedure, issued by Royal Decree No. (M/1) dated 22/1/1435 AH.

  • 2- Article (Twenty-five) of the Code of Law Practice, issued by Royal Decree No. (M/38) dated 28/7/1422 AH.

  • 3- Definitions of (Capacity, Minor, and Limited Capacity) contained in Article (One) of the Ethics of Research on Living Creatures Law, issued by Royal Decree No. (M/59) dated 14/9/1431 AH.

• Third: The following shall be amended as of the effective date of the Civil Transactions Law:

  • 1- Paragraph (3) of Article (Sixteen) of the Law of Commercial Courts, issued by Royal Decree No. (M/93) dated 15/8/1441 AH; to read as follows: "Disputes arising from partnership contracts stipulated in the Civil Transactions Law."

  • 2- The definition of (Real Estate by Designation) contained in Article (One) of the Movable Property Security Law, issued by Royal Decree No. (M/94) dated 15/8/1441 AH;

  • to read as follows: "Real Estate by Designation: The movable property that its owner places in real estate that has an encumbrance for the service or permanent exploitation of the real estate, even if it is not physically connected to the real estate."

  • 3- Paragraph (8) of Article (Fifteen) of the Notarization Law, issued by Royal Decree No. (M/164) dated 19/11/1441 AH; to read as follows: "Acknowledgment of suretyship guarantee."

• Fourth: The provisions of the Civil Transactions Law shall not prejudice the following:

  • 1- Any treaty or agreement to which the Kingdom is a party with states, bodies, and international organizations.

  • 2- Any jurisdiction of public or judicial authorities established by laws.

  • 3- Procedures for registration, licensing, or any formal procedures prescribed by laws.

• Fifth: The provisions of the Civil Transactions Law shall apply to all facts that occurred before its effective date, except for the following:

  • 1- If there is a legal text or judicial principle related to the fact that contradicts the provisions of this law and is invoked by one of the parties.

  • 2- If the judgment relates to a statute of limitations period that began before the effective date of this law.

• Sixth: The provisions of the Civil Transactions Law and what is stated in paragraph (Fifth) of this decision shall apply to commercial transactions; provided that it does not contradict the nature of the commercial transaction, and insofar as there is no special provision in commercial laws.

• A draft Royal Decree has been prepared accordingly, its text attached hereto.

• Seventh: The Minister of Justice - in coordination with the Minister of Commerce - shall study the appropriateness of acquiring the company contract stipulated in the Civil Transactions Law as a juridical person and the conditions to be met and the resulting effects, in light of the Companies Law issued by Royal Decree No. (M/132) dated 1/12/1443 AH, and submit the results to complete the legal procedures.

• Eighth: The relevant authorities - each within its jurisdiction - shall review the laws, regulations, and other legal provisions in light of the Civil Transactions Law, and propose what they deem appropriate within a period not exceeding (one hundred and eighty) days from the date of this decision, especially regarding the following:

  • 1- Terms related to civil transactions.

  • 2- Provisions of capacity.

  • 3- Provisions related to the formation, termination, and invalidity of contracts.

  • 4- Provisions related to liability and compensation.

  • 5- The effect of non-compliance with formality in contracts.

  • 6- Prescribed periods for non-admissibility of claims.

• Ninth: The Ministry of Justice shall, within (one hundred and eighty) days from the date of this decision, review the Law of Civil Procedure, the Law of Commercial Courts, the Enforcement Law, and their executive regulations, and take necessary measures in this regard to comply with the requirements of enforcing the provisions of the Civil Transactions Law, including reviewing the rules governing presentation and deposit stipulated in Branch (Two) of Chapter (One) of Title (Five) of Section (One) of the law.

Prime Minister