The new civil transactions system in Saudi Arabia 1444
The Civil Transactions Law is the third of the four laws that were announced as part of the 2021 legal reforms, and it was just approved by the Saudi Cabinet.
Following the conclusion of the Shura Council's deliberations, Prince Mohammed bin Salman made the announcement that the bill had been accepted.
Approving the civil transactions system in Saudi Arabia
The penal code, which governs discretionary punishments, is the other statute that is still in effect.
According to the prince, a "remarkable shift" has occurred within the framework of the system of specialized legislation as a result of the Civil Transactions Law.
In light of the provisions and goals of Islamic law, he added, the law was drafted in a way that makes use of the most recent legal trends and the finest international judicial practices. He said this was done in order to make the law as effective as possible. In addition to this, it is in line with the international duties that Saudi Arabia has accepted in light of the agreements that it has ratified in order to stay current with the changes that are occurring in today's society.
Civil Transactions System
He made the point that the law is built on foundations that are represented in the safeguarding of property, the consistency and validity of contracts, the determination of the sources of rights and obligations as well as the effects of those sources, and the elucidation of legal positions.
He emphasized that the law will have a beneficial impact on the business climate and boost its attractiveness. The law will also help to the regulation of economic movement and the stabilization of financial rights, in addition to making it easier to make decisions pertaining to investments. In the realm of civil transactions, it will promote transparency and predictability of judgements, and it will eliminate variations in judicial thinking in order to obtain swift justice. Additionally, it will contribute to the reduction of conflicts.
He made notice of the delay in the approval of the law, which was supposed to take place in the fourth quarter of 2022, and indicated that it was required to carry out additional research and investigate the provisions of the law's regulationss.