In this article
Saudi Arabia's Council of Ministers today, October 27, 2026, approved the Commercial Transactions Law, a 271-article law that replaces 3 existing laws: the Commercial Law, the Commercial Papers Law and the Commercial Books Law, according to the Ministry of Commerce statement. It takes effect 180 days after publication in the official gazette Umm Al-Qura. The practical takeaway for a business owner: you have about 6 months from publication to review 3 things: where you keep your accounting records and in which language, the templates of the supply, agency and brokerage contracts you sign, and how you track cheques, bills of exchange and promissory notes. If your contracts are scattered across email and WhatsApp, start with our article on organizing contracts and documents.
What exactly was approved today?
According to the Ministry of Commerce, the law is a comprehensive framework for commercial business, the business establishment and the related obligations, contracts and commercial papers. The main points in the statement:
- 271 articles covering what counts as commercial business, the trader and the establishment, traders' obligations, accounting records, commercial contracts and commercial papers.
- It replaces 3 laws: the Commercial Law, the Commercial Papers Law and the Commercial Books Law.
- Trading from age 15 with permission from a guardian, a custodian or the court.
- A new definition of the trader, setting which acts are commercial when done once and which must be done as a profession.
- Protection of fair competition: a trader may not harm a competitor, and the harmed party can go to court to stop the harm and claim compensation.
- Effective 180 days after publication in the official gazette.
At the time of writing, the full text of the articles has not been published, so this article sticks to the official statement. Read the text itself once it is published before making any final decision.
Accounting records: electronic or paper, with Arabic first
This is the part closest to your day-to-day systems. The statement says the law exempts some categories of traders from keeping accounting records, and gives attention to keeping them through technical means, electronically or on paper, in Arabic, with the option of keeping them in another language. The statement does not name the exempt categories, so do not assume you are one of them until you read the text.
What to check in your accounting system now:
- Language: can your system produce entries and reports in Arabic, or is everything in English only? Many imported packages work in a single language.
- Where the data lives: where is your data actually stored, and can you export all of it if you change provider?
- Audit trail: does the system keep a record of every change to an entry and who made it? A record that can be edited without a trace is weaker in a dispute.
- Backups: a regular copy outside the system itself, which you test restoring at least once.
Commercial contracts in one document: supply, agency and brokerage
For the first time, the law brings the rules of 4 contracts into one legislative document: commercial sale, supply sale, commercial agency and brokerage. The ministry says this makes outcomes more predictable, reduces disputes and helps small and medium businesses grow through contracts and agency work.
If your business supplies goods under an annual contract, distributes a brand as an agent or earns brokerage commission, these are the contracts to review first. Gather the current templates in one place and record who owns each contract internally and when it renews, so you are ready to review them with your legal adviser against the published text.
Bills of exchange, promissory notes and cheques under a new law
The rules for the 3 commercial papers, the bill of exchange, the promissory note and the cheque, move from the old Commercial Papers Law into the new law. In practice, every commercial paper you receive or issue needs a clear record: its number, due date, counterparty and status. If that information sits in a paper ledger or in your accountant's head, this is the moment to move it into your accounting system with an alert before each due date.
What should your business do in the next 180 days?
- Watch for publication in Umm Al-Qura, since the 180 days start from it.
- Review your accounting system: Arabic output, export, audit trail and backups.
- Collect your supply, agency and brokerage contracts in one repository with their renewal dates.
- Create a digital register for cheques, bills of exchange and promissory notes.
- If someone in your family or team starts a small business before 18, know that permission from a guardian, custodian or the court is required.
If your data is split between accounting, sales and inventory, workflow automation across your apps can give you one record instead of 3 conflicting copies.
The Origami view
We read this law as a step that makes the electronic record an explicit legal option rather than just a habit. A business with organized, exportable records and well-kept contracts will find the transition easy; one that relies on scattered files will discover the gap late.
We do not recommend buying a new system today because of the news. Check what you already have against the questions above, then wait for the published text to know exactly what is required. If you need help connecting your systems or building a digital contract register, reach us through our services page.
Conclusion
The Commercial Transactions Law merges 3 laws into one 271-article law and takes effect 180 days after publication. Your practical step today: review your accounting records, contracts and commercial papers, make them digital, organized and exportable, then match them against the text as soon as it is published.
Sources
Frequently asked questions
When does the Saudi Commercial Transactions Law take effect?
180 days after its publication in the official gazette Umm Al-Qura, according to the Ministry of Commerce. The Council of Ministers approved it on October 27, 2026, and the period runs from publication, not from approval.
Which laws does the Commercial Transactions Law replace?
It replaces 3 laws: the Commercial Law, the Commercial Papers Law and the Commercial Books Law.
Can accounting records be kept electronically?
Yes. The ministry statement says the law gives attention to keeping accounting records through technical means, electronically or on paper, in Arabic, with the option of another language, and exempts some categories of traders from keeping them. The exempt categories will be clear from the published text.
Can a 15-year-old trade in Saudi Arabia?
Yes. The law allows a minor who has reached 15 to trade with permission from a guardian, a custodian or the court.
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