Saudi Arabia approves new commercial law allowing trade from age 15
The Commercial Transactions Law permits those aged 15 to engage in trade with guardian or court authorisation.
At a glance
- Individuals aged 15 can trade with authorisation from guardian, custodian or court
- Law contains 271 articles covering commercial activities, merchant status and contracts
- Replaces three existing commercial laws
- Takes effect 180 days after official publication
Saudi Arabia's Cabinet has approved a new Commercial Transactions Law that permits individuals aged 15 years to engage in trade, provided they obtain authorisation from a guardian, custodian, or the court, according to Minister of Commerce Dr. Majid Al-Qasabi. The law will take effect 180 days after publication in the official gazette.
The legislation comprises 271 articles governing commercial activities, merchant status, establishment of commercial enterprises, accounting records, contracts and commercial papers. It replaces three existing laws and regulates various aspects of commercial contracts including sales, brokerage and commercial agency. The law also redefines what constitutes a merchant and regulates fair competition among traders.
Why it matters
The law establishes a unified regulatory framework for commercial activities in Saudi Arabia, consolidating three separate pieces of legislation into one comprehensive code.
Original reporting
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