2 February 2024
The Kingdom of Saudi Arabia issued the Civil Transactions Law (the "CTL"), pursuant to Royal Decree M/191 dated 29/11/1444H (corresponding to 19 June 2023G), which has come into force on 02/06/1445H (corresponding to 15 December 2023G). The CTL is intended to codify Islamic law (Shari'ah) principles under a single set of regulations and by doing so the CTL offers a higher level of certainty and predictability on commercial transactions in Saudi Arabia.
The CTL is a milestone in Saudi Arabia's journey towards achieving its Vision 2030 by undertaking major legal reforms which are expected to positively impact the Saudi Arabian economy and create a market that is attractive to both local and foreign investors.
In this briefing, we discuss the background to Saudi law and the legal system and summarise some of the key features of the CTL and the impact it would have on commercial transactions in Saudi Arabia.