Saudi Arabia Enacts Revolutionary Civil Transactions Law
In a momentous decision, the Council of Ministers of the Kingdom of Saudi Arabia (KSA) granted its endorsement to the highly anticipated Civil Transactions Law (CTL) during its meeting on June 13, 2023. This groundbreaking legislation signifies a noteworthy achievement in KSA's legal framework, which has predominantly relied on the fundamental principles of Islamic Shariah in its civil courts until now.
The long-awaited CTL, highly anticipated for its arrival, serves as a comprehensive legal framework aimed at aligning KSA's legal practices with international standards. While firmly rooted in the principles of Islamic Shariah, the law has been meticulously crafted to integrate the latest and most effective legal practices, as per official statements. Furthermore, it is anticipated to ensure adherence to international agreements and treaties signed by Saudi Arabia, while bolstering the safeguarding of intellectual property rights.
The CTL holds a crucial goal of addressing an extensive array of matters concerning the validity, consequences, termination, or dissolution of diverse properties and contracts within the Kingdom. Through the provision of explicit guidelines and regulations, the law strives to streamline legal procedures, fostering transparency and efficiency in civil transactions.
The next pivotal stage for the CTL involves its formal issuance through a Royal Decree, followed by its publication in the Saudi Official Gazette. Upon publication, the law will be enacted and serve as a framework for legal practitioners, businesses, and individuals to navigate civil transactions within Saudi Arabia.