Contract

Contract law in Saudi Arabia is deeply rooted in Islamic law (Sharia), which influences the formulation, execution, and enforcement of contracts. The Saudi legal framework for contracts is guided by principles found in the Quran and Sunnah, supplemented by modern legal practices to address contemporary needs.

Key Principles of Contract Law

1. Sharia Compliance
2. Formation of Contracts
3. Sale Contracts
4. Lease Contracts (Ijarah)
5. Partnership Contracts (Mudarabah and Musharakah)
6. Contractual Obligations and Performance
7. Termination and Breach

Key Legal Provisions

1. Commercial Law
2. Civil Transactions Law
3. Arbitration Law

Key Regulatory Bodies

1. Ministry of Justice (MOJ)
2. Saudi Center for Commercial Arbitration (SCCA)

Recent Developments and Reforms

1. Vision 2030
2. Judicial Reforms

Saudi Arabia’s contract law, grounded in Islamic principles, provides a robust framework for the formulation, execution, and enforcement of contracts. Ongoing reforms under Vision 2030 aim to enhance the legal environment, making it more conducive to business and investment. By integrating traditional Sharia principles with modern legal practices, Saudi Arabia seeks to create a balanced and effective legal system for contracts.