The Civil Transactions Law (CTL) in Saudi Arabia, enacted by Royal Decree M/19 on 18 June 2023 and effective from 16 December 2023, significantly reforms legal frameworks around contracts and financial transactions.
This landmark legislation, consisting of 720 articles, integrates Sharia principles, offering a structured approach to civil interactions.
Key features of the Law
- Detailed contract principles for clear agreements.
- Rules on financial transactions to ensure fairness.
- Guidelines on property rights and obligations.
- Dispute resolution mechanisms for efficient proceedings.
- Specific regulations for different contract types.
- Enhances investment, trust, and judicial predictability.
- Balances rights and obligations equitably.
- Modernizes the legal system while aligning with Islamic values.