Saudi citizens as young as 15 can now participate in business under a new commercial transactions law approved by the Cabinet on Tuesday.
Chaired by Crown Prince and Prime Minister Mohammed bin Salman, the Cabinet cleared the 271-article legislation to bring young entrepreneurs into the economy and strengthen the regulatory environment.
Commerce Minister Majid Al-Qasabi said the legislation regulates commercial sales, supply contracts, brokerage, and commercial agency agreements. He said the law complements the Civil Transactions Law to stimulate commerce and investment across the country.
The Ministry of Commerce stated that the framework covers commercial activities, merchant obligations, business establishments, accounting records, contracts, and negotiable instruments such as bills of exchange, promissory notes, and checks. The legislation replaces three older statutes: the Commercial Law, the Negotiable Instruments Law, and the Commercial Books Law.
The law also aims to promote fair competition and curb practices that harm competitors. Affected businesses gain the right to seek court orders to stop harmful conduct and claim compensation.
The rules exempt certain categories of merchants from maintaining accounting records. They permit records to be stored electronically or on paper in Arabic, with the option of using another language.
For the first time, rules governing commercial sales, supply contracts, commercial agencies, and brokerage agreements are consolidated into a single legal reference.
Set to take effect 180 days after publication in the Official Gazette, the measure gives small and medium-sized enterprises greater legal protection.
Osama bin Ghanem Al-Obaidi, a legal consultant and professor of commercial law, said the Cabinet decision was a step in modernizing Saudi economic legislation. He pointed to that allowing citizens aged 15 and older to trade under specific conditions helps young Saudis gain practical experience earlier.
"There is no doubt that the law will strengthen the investment environment and the competitiveness of the Saudi economy," Al-Obaidi said. He added that the framework attracts investment by aligning with international best practices and reducing commercial risks.
Economic and investment specialist Tahani bint Abdullah Al-Khayyal stated that clearer rules help businesses understand their rights and avoid disputes. She stressed the law for small and medium-sized enterprises, which drive innovation, job creation, and economic diversification.
Al-Khayyal said the legislation supports Vision 2030 goals to broaden economic participation and reinforce the private sector’s role in national growth. The framework officially takes effect six months after its publication in the Official Gazette.
