In brief: On Tuesday 27 October 2026 the Saudi Cabinet approved the Commercial Transactions Law. The 271-article law replaces three existing laws: the Commercial Law, the Negotiable Instruments Law and the Commercial Books Law. It allows accounting records to be kept electronically or on paper, in Arabic, with the option of another language. It takes effect 180 days after publication in the Official Gazette.
What did the Cabinet approve?
The Ministry of Commerce said the law regulates commercial sales, supply sales, brokerage and commercial agency, and allows citizens aged 15 and older to engage in business under specific conditions. Okaz reported that, at that age, trading requires permission from a guardian, custodian or the court.
Commerce Minister Dr. Majid Al-Qasabi said the law brings the rules on commercial contracts together in a single legislative document for the first time. The Saudi Press Agency (SPA) said on 29 October 2026 that the law complements the Civil Transactions Law issued under Royal Decree No. (M/191) dated 29/11/1444 AH.
What changes for accounting books and records?
This is the part that matters most to finance teams. According to Okaz and Arab News, citing the ministry:
- The Commercial Books Law is replaced, and its rules move into the new law.
- Certain categories of merchants are exempted from keeping accounting records. The exempt categories have not yet been detailed.
- Records may be kept electronically or on paper, in Arabic, with the option of using another language.
The law also covers negotiable instruments, including bills of exchange, promissory notes and cheques, which previously had their own law.
When does it take effect?
The law takes effect 180 days after its publication in the Official Gazette, Umm Al-Qura. It had not been published in the Gazette at the time of writing, so the effective date is not yet fixed. That window gives businesses time to review how they keep their books and contracts.
What does this mean for your system?
If your books are still on paper or spread across Excel files, the new law confirms that electronic record-keeping is a legally recognised option. What matters is that records are complete, kept in Arabic, and can be produced when requested.
In RivDesktop, which runs on your own server, or in Riv-ERP Cloud on Oracle Cloud, invoices and journal entries are recorded inside the system rather than in scattered files. Invoices are linked to the Fatoora platform, and the 16-box VAT return report is built from them. Read also: ERP selection checklist for 2027, Saudi VAT return deadline for Q3 2026 and ZATCA e-invoicing Wave 25.
Sources
- Ministry of Commerce: the Commercial Transactions Law regulates commercial sale, supply sale, brokerage and commercial agency (27 October 2026) — official source
- Saudi Press Agency: Commercial Transactions Law complements Civil Transactions Law (29 October 2026)
- Arab News: New Saudi law broadens business participation, supports entrepreneurs (28 October 2026)
- Okaz: Al-Qasabi: the Commercial Transactions Law allows 15-year-olds to trade (Arabic)
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