In a significant move the Council of Ministers of the Kingdom of Saudi Arabia (KSA) have enacted the Civil Transactions Law (CTL) on 19 June 2023. The law governing contracts has been primarily based on the principles of Islamic Sharia Law within its civil law jurisdictions. The CTL is said to come into effect 180 days after it was published, on 16 December 2023. As a result, provisions that contradict the Code will be abolished and subject to the new KSA Civil Code and all further disputes decided upon that basis.
The CTL includes regulations that define all that is related to contracts such as: validity of a contract, the effects amongst the contracting parties, termination, and requirements for compensation. It also deals with forms of ownership and their rights.
Saudi Crown Prince and Prime Minister HRH Mohammed bin Salman said “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.”
Our offices in Riyadh can offer their expertise to help you understand the regulations around the CTL. Contact us on: +996 (0) 114192149 (KSA) or on: +44 (0) 203 343 6204.
You can visit us at: 3545 Skh Abdullah, Al Angari Alwurud, Riyadh 12252-7251
54A Queensway, London, W2 3RY
