Saudi cabinet approves 271-article commercial law, opens trade at 15

Summary

• Saudi cabinet approved a commercial transactions law of 271 articles on Tuesday, October 27, 2026.
• The law replaces three existing statutes and lets citizens trade from age 15 under conditions.
• Consolidation cuts compliance costs and widens the trader base before the law takes effect in 2027.

The latest

Citizens as young as 15 will be allowed to conduct trade under conditions set by a new Saudi commercial transactions law of 271 articles, approved by the cabinet on Tuesday, October 27, 2026. The session was chaired by Crown Prince and Prime Minister Mohammed bin Salman. The law takes effect 180 days after publication in the official gazette.

Details

• What it replaces: The new statute supersedes three separate laws now in force: the commercial law, the commercial papers law and the commercial books law, according to Arab News citing the Ministry of Commerce. Merging them into a single text is the first consolidation of Saudi commercial rules of this scope.
• The scope: For the first time, provisions governing commercial sale, supply contracts, commercial agency and brokerage are gathered in one law, according to the Ministry of Commerce. Commerce Minister Majid al-Qasabi said the law covers commercial sale, supply contracts, brokerage and commercial agency, and complements the civil transactions law.
• The age threshold: Saudi citizens from the age of 15 may practise trade under conditions set out in the law. The measure lowers the entry point for young entrepreneurs into formal commercial activity, a change presented by the Ministry of Commerce as broadening business participation.
• Bookkeeping relief: Certain categories of merchants are exempted from maintaining accounting books, a provision aimed at easing the administrative burden on smaller traders. The law does not identify which categories qualify for the exemption.
• Record-keeping rules: Records may be kept electronically or on paper, in Arabic, with the option of using another language alongside it. The explicit recognition of digital records aligns commercial documentation requirements with existing electronic business practice.
• The timeline: The law enters into force 180 days after its publication in the official gazette, placing implementation in 2027. The publication date in the gazette has not been announced, leaving the precise start of the countdown undetermined.
• The approval: Approval came at the cabinet session held Tuesday, October 27, 2026, chaired by Crown Prince Mohammed bin Salman in his capacity as prime minister, according to the Saudi Press Agency.
• The stated purpose: The Ministry of Commerce framed the law as broadening business participation and supporting entrepreneurs, according to Arab News. Al-Qasabi positioned it as the commercial complement to the civil transactions law rather than a standalone reform.

Background

Saudi Arabia has been rebuilding its legal codes in recent years, with the civil transactions law setting the general framework for contracts. The commercial transactions law is presented by the Commerce Ministry as the sector-specific counterpart to that framework.

Between the lines

Three statutes collapsing into one text reduces the number of legal references businesses must reconcile, which is where compliance costs and contractual disputes accumulate. Gathering agency, brokerage and supply contracts in a single law for the first time addresses areas previously governed by scattered provisions. The 15-year threshold, paired with bookkeeping exemptions, points at the smallest and newest traders rather than large firms.

What's next

Watch for publication in the official gazette, which starts the 180-day countdown to entry into force, and for Ministry of Commerce implementing rules defining the conditions for trading at 15 and the bookkeeping exemptions.

Source: Saudi Press Agency (SPA), Arab News