Al-Qasabi: New Commercial Transactions Law regulates contracts, allows trade activities from age 15

Key Changes in the Commercial Transactions Law

Previous Status

New Status

Commercial transactions were governed by three separate laws:  the Commercial Court Law, the Negotiable Instruments Law and the Commercial Books Law.

A single law covers commercial activities, merchants and their obligations, commercial establishments, commercial contracts and negotiable instruments.

Commercial sales, supply sales, commercial agency and brokerage contracts were not specifically regulated.

For the first time, the law brings the rules governing commercial sales, supply sales, commercial agency and brokerage together in a single legal instrument.

Individuals under the age of 18 were not permitted to engage in commercial activities.

 Minors aged 15 and above are permitted to engage in trade with the authorization of their guardian, custodian or the court.

Accounting records had to be kept on paper and in Arabic only.

Accounting records may be maintained electronically or on paper in Arabic. Merchants may also keep records in another language in addition to Arabic.

The absence of a comprehensive framework covering commercial transactions made it difficult to predict legal outcomes.

The law aims to improve predictability, reduce disputes and facilitate the timely delivery of justice.