Saudi Arabia is introducing a comprehensive commercial law that modernizes business transactions, strengthens legal protections and expands opportunities for young entrepreneurs.

The Council of Ministers has approved a new Commercial Transactions Law comprising 271 articles, bringing several areas of commercial regulation under a unified legal framework.

One notable provision allows individuals aged 15 and above to engage in commercial activities, provided they obtain authorization from a parent, legal guardian or the court.

What Is Changing?

The new law introduces several important developments:

- Young entrepreneurs: Individuals aged 15 and above may conduct business with the required authorization.
- Commercial contracts: Clearer rules governing commercial sales, supply agreements, brokerage and commercial agency.
- Business protections: Stronger safeguards against unfair competitive practices, including legal remedies for affected businesses.
- Accounting records: Greater flexibility in maintaining records electronically or on paper, with exemptions for certain categories of merchants.
- Simplified legal framework: Three existing commercial laws will be replaced by a consolidated framework.

The law will take effect 180 days after its publication in the Official Gazette.

Why It Matters for Businesses and Investors

Beyond encouraging youth entrepreneurship, the legislation represents another step toward a more structured and predictable business environment in Saudi Arabia.

For local businesses, SMEs and international investors, clearer commercial rules can help reduce contractual uncertainty, strengthen business relationships and improve confidence in commercial transactions.

The Bigger Picture

Saudi Arabia's economic transformation is not limited to major investments and infrastructure projects. It also involves modernizing the legal foundations that support everyday business activity.

The new Commercial Transactions Law reflects that broader shift, creating a framework intended to support entrepreneurship, commercial confidence and sustainable business growth.

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