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The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:

Commercial Activity and Business Environment Development

Recent indicators issued from the Saudi ministry of commerce indicate to the continuous development of commercial sector, that is through the increased number of new commercial registers recently, that reflects the economic activity extending and the improvement of investment environment in the KSA.

That development is a result of the development of commercial regulations and facilitating procedures of founding and registration, which raises the level of compliance to applicable commercial laws.

Legal consequences:

Reinforcing commercial regulation effectiveness in the market.

Raising the level of compliance to commercial laws.

Supporting investment environment stability.

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Digital Transformation in Commercial Services

Saudi ministry of commerce continues developing its digital system which is related to the services of commercial register and articles of association, according to the governmental digital transformation that aims at improving the competence of services and relieving traditional procedures. That development aims at facilitating commercial treatments, and reinforcing dependence on electronic solutions of documentation and the regulatory actions.

Legal consequences:

Facilitating regulatory actions and decreasing operational intervals.

Raising competence of electronicdocumentation and verification.

Reinforcing authentication of commercial treatments.

Technical Development in the Legal Field

Recently, there is an extension of employing modern techniques, including artificial intelligence, for supporting legal research and studies, and analyzing complex regulatory issues, that reinforces the competence of legal analysis tools. That direction reflects a transformation for the inclusion of technology in the legal field, that contributes in developing methods of inference and improving quality of legal outcomes.

Legal consequences:

Supporting digital transformation in the legal field.

Developing tools of legal analysis and inference.

Raising competence of legal research.

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Reinforcement of Data Protection and Organizational Compliance

The regulatory authorities in the KSA, including the Saudi Information Authority continue their efforts for reinforcing compliance to (SDAIA) and artificial intelligence for personal data. That is through raising the levels of control and application on varied sectors, especially digital and commercial ones. That is made to reinforce protecting privacy and organizing data treatment, to achieve balance between technical development and regulatory compliance.

Legal consequences:

Reinforcing personal data protection.

Raising levels of regulatory compliance of establishments.

Supporting organizational framework of digital environment.

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Reinforcing Compliance in the Companies Law and Governance of Commercial Identities

The regulatory authorities in the KSA, including Saudi Ministry of Commerce and Saudi Capital Market Authority, continue their efforts for reinforcing compliance to companies’ law and developing governance environment at commercial identities that is through establishing strict requirements for financial and administrative disclosure raising the level of transparency in companies. That direction comes in the framework of developing legislative environment for the commercial sector, that ensures protection of shareholder and businessmen rights, and raises market credibility, especially with the extension of investment activities and the emergence of new instruments. Also, that development shall raise regulatory compliance, and shall relieve risks which are related to non-compliance to related laws and regulations.

Legal consequences:

Reinforcing compliance to companies’ law and governance.

Raising the level of transparency and financial disclosure.

Protecting the rights of shareholders and investors.

Relieving the regulatory risks which the commercial identities are exposed.

The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:

Organizational Reformations at the Retirement and Insurance Laws that Includes Termination of Previous Committees and Approving New Mechanisms for Calculating Actuarial Effect  

The cabinet approves extended organizational amendments to the retirement and social insurance laws for supporting the path of transformation, allocation and reinforcing the competence of the related systems.

The amendments include the issuance of a royal bylaw for amending the mutual interest’s system between the retirement and insurance systems, where the related authorities should provide the social insurance public authority with all information of employees and workers who are covered by the transformation processes, that ensure accuracy of procedures and safety of insurance interest’s transfer.

The amendments oblige the concerned authorities to notify the organization about the transformation decrees not later than 30 days from the date of issuance that reinforces governance and compliance. For financial treatments, the actuarial effect is approved to be considered the outcome on the pension funds as a natural result of different systems, while asserting compensating those funds through interactive finance method in a case of shortage of insolvency.

The decrees also include the termination of the previous committees which are concerned with allocating the costs of transformation processes, while approving a new mechanism for calculating the net actuarial profits and losses of the pension funds that reinforces transparency and competence of financial assessment. Those amendments come through the efforts for organizational framework of retirement and insurance systems according to the targets of economic transformation and establishing financial sustainability.

• Reinforcement of Commercial Arbitration and Development of an Environment for Dispute Settlement in the KSA
• Riyadh International Week for Disputes Settlement 2026 Housed International Legal Events with the participation of international experts.
• They celebrated the 60^th anniversary of UNCITRAL

The event was concerned with the following:

• Unifying the international commercial laws.
• Developing commercial arbitration.
• Reinforcing investment environment in the KSA

Influence on companies:

• Much support for using arbitration instead of traditional justice.
• Facilitating the settlement of international commercial disputes.
• Raising the credibility of legal environment for investors.

• Capital Market Authority Approves a New Organizational Framework for Enlisting Special Purpose Acquisition Companies (SPACs) in the Parallel Market “Nomue”

Saudi Capital Market announces approving a new organizational framework that enables enlisting special purpose acquisition companies (SPACs) at the parallel market “Nomue” through amending the market rules, and the rules for offering securities and organizations of enlisted companies, in addition to the terminology that regulates capital market, with the aim of varying investment tools which are available to investors and reinforcing market flow.

The approved amendments contribute in supporting non-traditional companies joining development market, that opens new opportunities for finance and increasing investment options for national and international investors, in addition to reinforcing the competitiveness of the Saudi market at both national and international levels.

News effect on companies and capital market

• Extending non-traditional finance tools through SPACs mechanisms.
• Providing startup and special companies with opportunities for accessing market without the need to structure the priority of general, traditional subscription.
• Reinforcing flow and activation of parallel market transactions.

The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:

Warning each identity that fails to disclose the actual beneficiary data  

Minister of commerce decree number (186) dated to 24-08-1447H

Upon the authorities granted to the minister of commerce, and according to paragraph (Q) of article (two hundred sixty two), and paragraph (two hundred sixty seven) of the companies law issued by the royal bylaw number (132-M) dated to 1-12-1443H, and article (twelve) of the actual beneficiary rules issued by the ministerial decree number (99) dated to 5-6-1447H, and referring to the public interests.

The following is decreed:

First: Each identity fails to disclose the actual beneficiary data, or fails to present the annual confirmation of that data for the first time, while is granted thirty days period starting from the next day to the warning for correcting the situation.

Second: In a case of not correcting the situation in the stated period at the first paragraph, a direct sanction shall be imposed on each company which doesn’t comply with the disclosure or fails to present the annual confirmation of the actual beneficiary data in the defined period according to the actual beneficiary rules. The fine shall be as follows:

Third: in a case of repeating the violation of not disclosing the actual beneficiary data in the defined period for the next year to the previous violation decree, the fine shall be doubled for the previous violation, while the total fine shall not exceed (500,000) Sr..

Fourth: notification of the direct sanction decree shall be according to the mechanisms defined at article number (ninety four) of the executive rules of the companies’ law.

Fifth: This decree is published at the official gazette and is applicable from the date of its publication.

Decree of the capital market number (1-135-2025) dated to 03-06-1447H

The capital market authority board decrees the following upon the capital market law, issued by the royal bylaw number (30-M) dated to 2-6-1424H:

• Amending the regulations for offering securities and continuous liabilities, by the board decree number (3-123-2017) dated to 9-4-1439H, corresponding to 27-12-2017, amended by the board decree number (1-94-2025) dated to 9-3-1447H, corresponding to 1-9-2025, as follows:

• Amending paragraph (d) and paragraph (h) of article number seventy four of the rules, by inserting the statement “qualified investors in parallel market” instead of the statement “qualified investors”.

• Amending paragraph (f) of article seventy nine and paragraph “d) of article eighty three of the rules, by inserting the phrase “qualified investor in parallel market instead of “qualified investor”

• Amending paragraphs (a), (b), (c) or (d) of article number eighty five of the rules, by inserting the phrase “qualified investors in parallel market” instead of “qualified investors”, and it is applicable from the date of publishing.

• Amending the definition of “qualified investor” that is stated in the list of idioms used in the capital market authority regulations, issued by the board decree number (4-1-2004) dated to 20-8-1425 H, corresponding to 4-10-2004, amended by the board decree number (1-94-2025) dated to 9-3-1447H corresponding to 1-9-2025, as follows: “qualified investor in parallel market: means at the eighth section of the securities offer rules and the continuous liabilities, and in articles number forty eight, and forty nine of the real estate investment funds, each of the following:

• Capital market institutions which act for their own account.

• Clients of the capital market, who are licensed to practice business, in a condition of being appointed by conditions which enable them to take the decrees for accepting shared offering and investment in parallel market instead of the client without having a prior consent.

• The KSA government, any governmental authority or any international authority which is recognized by the authority, the market or any other fiscal market which are recognized by the authority or the deposit center.

• The companies which are owned by the government, whether directly, or through a pocket managed by the capital market which are licensed to practice management.

• Companies and funds which are established in the GCC.

• Investment funds.

• Any other legal identities may open investment account in the KSA and an account at the center.

• Natural identities may open investment account in the KSA and an account at the Deposit center.

They should meet the following standards:

• He should make bargains at the capital market which value shouldn’t be less than twenty million Saudi riyals in the last twelve months.

• The net value of his assets shouldn’t be less than five million Saudi riyals.

• He should have worked for at least three years in the fiscal sector.

• He should have the general certificate for dealing with securities and it should be approved from the authority.

• He should have a professional certificate in the field of securities and it should be recognized by an international authorities.

• He should have worked as a member in the board of directors or a member of the specialized committees in the companies which are listed in the parallel market.

• Any other persons who are defined by the authority.

This decree is applicable from the date of its publishing.

• Amending paragraph (m) of article forty eight and paragraph (n) of article forty nine of the investment funds regulations, issued by the board decree number (1-2019-2006) dated to 3-12-1427H, corresponding to 24-12-2006, amended by the board decree number (1-2029-2025) dated to 23-11-1446H corresponding to 21-5-2025, through inserting “categories of qualified investors in the parallel market” instead of “categories of qualified investors”. They are applicable from the date of publishing.

• Amending paragraph (B) of article forty six of the real estate investment funds issued by the board decree number (1-193-2006) dated to 19-6-1427H, corresponding to 15-7-2006, amended by the board decree number (1-4-2025) dated to 23-11-1446H, corresponding to 21-5-2025, by inserting “categories of qualified investors in the parallel market” instead of “categories of qualified investors”. It is applicable from the date of its publishing.

• Publishing the content of paragraphs (a), (b), (c) and (d) of this decree at the websites of the authority and Tadawul Saudi Company.

• Decree number (662) dated to 07-09-1447H

The cabinet:

Upon revising the treatment issues from the royal court in number 43696 dated to 16-6-1446H, including the telegram of the minister of commerce, the chairman of the national center for competition and the chairman of the Saudi center for economic business, in number 19521 dated to 140601446H about merging the national center for competition and the Saudi center for economic business, in one center under the title of “the Saudi center for competition and business”

Upon revising the draft for regulating the Saudi center for competition and business,

Upon revising the organization of the national center for competition, issued by the cabinet decree number (212) dated to 25-4-1440H,

Upon revising the organization of the Saudi center for economic business, issued by cabinet decree number (456) dated to 11-8-1449H,

Upon revising the rules and the regulations for the method of treating employees and workers in the targeted sector through transfer or allocation, issued by the cabinet decree number (616) dated to 20-10-1442H,

Upon revising the cabinet decree number (611) dated to 22-8-1447H,

Upon revising the statements number (317) dated to 26-1-1447H, (1234) dated to 2-4-1447H, (2318) dated to 24-6-1447H, and (3061) dated to 29-8-1447H, which are issued by the experts’ authority at the cabinet,

Upon revising the recommendation of the economics and development affairs council number (47-6-6) dated to 29-5-1447H,

Upon revising the recommendation of the public committee of the cabinet number (9562) dated to (47-6-6),

Decrees:

First: Merging the national center for competition and the Saudi center for economic business, in one center in the name of “the Saudi Center for Competition and Business”, while that merge shall not result in any addition financial effect on the general balance of the state, or requesting an increase on the approved thresholds.

Second: Agreeing on organizing the Saudi center for competition and business, in the attached form.

Third: in exception from paragraph (2) of article (ten) of the stated organization in “Second” of this decree, the first fiscal year for the Saudi Center for competition and business commences from the date of that organization applicability and completes with the completion of the next fiscal year of the state.

Fourth: Saudi center for competition and business replaces the national center for completion and the Saudi center for economic business, in all their rights and undertakings.

Fifth: the board of the Saudi center for competition and business supervises the process of merging which is stated in (First) article of this decree, and it may establish the required procedures.

Sixth: in exception of the (first) article of this decree, and the organization stated in (the second) article of this decree, the national center for completion and the Saudi center for economic business continue practicing their duties until the completion of the merge, according to what is decided by the Saudi center for competition and business.

Seventh: in exception from paragraph (1) of article (four) of the stated organization in (the second) article of this decree, Dr. Maged Bin Abdullah Alqasaby shall be the chairman of the Saudi center for competition and business until appointing a chairman according to the this paragraph.

Eighth: Continuity of applying the fiscal and administrative regulations of both the national center for competition and the Saudi center for economic business on their workers, until approving the center regulations by the board of the Saudi center of competition and business, and handling the position of those workers according to the regulations for treating employees and workers in the targeted sectors for transfer and allocation issued by the cabinet decree number (616) dated to 20-10-1442H.

Ninth: using the phrase (the Saudi center for competition and business) instead of (the national center for competition) and instead of (the Saudi center for economic business), wherever they come in the regulations, orders, bylaws, decrees, rules, etc.

Tenth: the board of the Saudi competition center and business shall have the authorities stated in paragraph (5) of the (fifth) article of the above stated organization- mentioned in (the second) article of this decree- in an agreement with the ministry of finance, and the non-petroleum revenues development center, until the enforceability of the regulations related to the national framework for the charges and the fiscal meetings issued by the cabinet decree number (611) dated to 22-8-1447H

Eleventh: 1- the Saudi center for completion and business shall be the legislative and supervising reference for the unified service, while the governmental authorities which intend to establish or operate centers for the business sector services, shall coordinate with the center to take the required approvals, notwithstanding the related regulative texts.

2- providing any service at the unified service centers- stated in paragraph (9) of article (three) of the stated organization in (second) article of this decree- without providing the service itself at the concerned authority or its branches.

Twelfth: providing services of the Saudi center of competition and business shall be through the concerned related authorities, according to paragraph (9) of article (three) of the stated organization in the second article of this decree, upon the rules approved by the center board in an agreement with the ministry of finance and the ministry of human resources and social development, while those rules should include what is related to regulating the relationship of the related parties of the concerned authorities to the center and what is related to granting them any advantages.

Thirteenth: the Saudi center of competition and business revises the regulations and the organizations, the orders and the royal bylaws and decrees according to the (first) article of this decree, and it a case it is pointed out that they need any amendment at their rules- which are related directly or indirectly to its work- it shall report what it considers suitable in that regard.

The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:

Releasing male and female prisoners who are convicted in public property crimes 

Through enforcing the directions of the Custodian of the Two Holy Mosques, King Salman Bin Abdul Aziz Al Saud- Supported by Allah- Ministry of Interior applies the procedures of releasing male and female prisoners who are convicted in public property crimes, according to the approved legal regulations and conditions.

Legal Consequences

Abatement of the claim or the remaining sanction term in the crimes where the release is applied, which are related to the public property crimes according to the royal decree.

Not extending the release effect to personal property, unless their holder discharges them or in a case of reconciliation according to the regulations.

The release is applied to the cases that meet the defined conditions by the concerned authority, while it is governed by the related regulations and executive rules.

Approving the Regulations for Prince Mohamed Ben Salman Center for Arabic Handwriting and National Policy for Arabic Language

The regulations for Prince Mohamed Ben Salman Center for Arabic Handwriting are approved according to the  National Policy for Arabic Language that aims at reinforcing Arabic Language presence in education, media, business and international relations, and unifying related regulatory reference.

Legal Consequences

Establishing regulatory compliance by using Arabic language in the public authorities work and the related official documents and correspondence.

Reinforcing Arabic text suppressing in multi-language contracts and agreements.

Extending language compliance as a regulatory undertaking in related sectors, that is reflected on contracting formation and the internal bylaws for establishments that deal with the public sector.

Launching the Service of Leasing Agricultural Equipment through “Naama” Website

Ministry of Environment, Water and Agriculture launches an electronic service for licensing the activity of leasing agricultural equipment through “Naama” website, with the aim of regulating the activity and raising the level of compliance with the approved technical conditions.

Legal Consequences

Making a condition of having an in-advance license for practicing the activity, and preventing its practice without having a regulatory permit.

Establishments are governed by regulatory control and the approved technical conditions, while liability and sanctions shall be regulated in a case of violation.

Considering the licenses and the electronic procedures issued through the website as official documents that produce their regulatory effects.

Approving Manual Crafts and Industries Law

A law is issued for regulating manual crafts and industries activity, and supervising them by the Heritage Authority, while practitioners shall have a grace time for one year for correcting their positions.

Legal Consequences

Activity shall be governed by a legal framework that defines the regulations for practice, registration and sorting.

Present craftsmen are obliged to correct their positions through the defined term, otherwise continuation in the activity shall be considered a legal violation.

Regulating the quality standards and the national register of craftsmen, and approving sale and exporting stores, to reinforce controlling the sector and its commercial and legal practices.

The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:

Registration of more than 21, 000 violations to the residence and labor laws in a week

Launching New Services at “absher” Website for Facilitating Procedures

Saudi Ministry of /interior announces adding four new electronic services at “absher” website that include: updating photo of residents, terminating commercial register of a husband/ follower, separating a follower, and the travel service through Salwa gate. The aim of those services is to facilitate the procedures for the beneficiaries and decreasing the need of a personal revision, that saves time and reinforces the accuracy of official treatments performance.

Legal consequences

It provides an authenticated official means for performing legal treatments without the need of repeated personal revisions.

It decreases mistakes and provides electronic authentication which is legally enforceable.

It reinforces digital transformation in the KSA and ensures quick procedures and reliving probable legal disputes.

It encourages dependence on official digital means in legal and administrative treatments.

Geographical indicators protection for national products

The KSA approves geographical indicators protection system with the aim of protecting the products related to defined locations of imitation or misleading use, such as national dates and oils. The system includes strict sanctions up to imprisonment for a month to three years, and fines up to a million riyals. It aims at protecting commercial and intellectual property rights for national products. The system shall be enforceable officially 180 days after its publication in the official gazette. It includes all authorities and companies which operate in the related fields to those products.

Legal consequences

Protecting national products from imitation of unauthorized use

Imposing fiscal and criminal sanctions on the violators to relieve infringement

It obliges companies and investors to update marketing strategies and compliance to the new regulations.

It encourages the development of national trademarks and protecting intellectual property rights.

Approving New Fiscal Control Law in the KSA

The KSA approves the new fiscal control law and it was published in the official gazette in December, 2025. It is expected to be enforced from the 11^th of April, 2026. The law established a new framework of controlling public money and covers public and private institutions and the public fiscal authorities, with advanced mechanisms that depend on analyzing risks and assessment of performance.

Legal consequences

It imposes a developed system of fiscal control according to the international standards.

It obliges the authorities that are covered by the control to update the systems of fiscal reporting and compliance with the transparency standards.

It reinforces accountability and lessens fiscal violations in both public and private sectors.

It grants control authorities strong powers for collecting information and enforcing sanctions on violators.

Legal Information

According to the Saudi law, documenting contracts and agreements is made electronically through official websites, such as “Qiwa”, or the real estate registers, in a condition of their legal enforceability against others. Each non-documented contract or agreement shall not be enforceable at justice in a case of dispute, even if both parties agree in writing on it.

The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:

Tightening and Digitalizing Residence laws

New residence and labor law is enforceable from the early 2026, upon approving the smart digital system that aims at facilitating procedures and raising competence in addition to decreasing violations.

The law depends on the electronic completion of procedures including applying for and renewing residences, in addition to exchanging information between the ministry of human resources and passports department that facilitates following up residence and labor violations at the real time.

Sanctions and violations:

Imprisonment, fine, and deportation for the ones who violate residence and labor regulations.

Sanctions on the establishments that employ violating staff, including fines or prohibiting hiring.

Forming a committee to follow up violations and enforcing the sanctions according to the law.

The present amendment is made for controlling job market, protecting the rights of employees and reinforcing sustainable compliance, according to the Saudi Vision 2030 for improving work environment.

Real estate authority announces the enforcement of non-Saudis property law

The KSA enforces the law for non-Saudis property ownership from the beginning of 2026 upon approving the legislative updates of the real estate system that aims at developing the sector and attracting foreign investments,

That law permits non-Saudis to own properties and to acquire material rights inside the geographical zone defined by the real estate public authority, that ensures regulating the market and preserving its balance. That law makes a condition that the non-Saudi ownership or material right shall not be enforceable unless it is registered at the real estate register according to the approved procedures and providing the required information. For the financial element, the law permits imposing charges which shall not exceed 5% of the real estate transactions value when they are made by non-Saudis, notwithstanding any other applicable taxes or charges.

The law imposes the following sanctions in a case of violating its rules:

Warning

A fine up to 5% of the material right value which is the violation subject, to the maximum of 10 million riyals.

Also, a committee or more shall be formed to include legal professionals to deliberate the violations and impose the sanctions according to the extent and the consequences of the violation.

The law is an extension of the binding real estate legislations that aim at increasing the property offer and attracting investors and development companies to the Saudi market,

A Draft for Amending the Bankruptcy Law According to the Best International Practices

Bankruptcy committee suggests an amendment to the bankruptcy law that allows the debtor, especially the small debtors to schedule the debts according to mechanisms that agree with the best international practices, with the aim of achieving balance between the interests of debtors and creditors.

The amendment includes a prior agreement between the debtor and the creditor on the plan for rescheduling debts before commencing any of the bankruptcy procedures, where the plan includes clear financial information, and confirms that the revenue for the rejecting creditors isn’t less than the expected revenue in a case of dissolution.

The amendment obliges the debtor to have an approved bankruptcy trustee for preparing a report that assesses the plan fairness and achieving the interests of most creditors, then applying to the court with an application for authenticating the plan upon notifying the creditors.

The amendment allows the creditors to appeal in front of the court in a case of damages or violations to the standards of justice. In a case of the court authentication of the plan, it shall reject the registration of any application after the commencement of the bankruptcy procedures.

In a case of rejecting the authentication, any stakeholder shall apply for commencing the bankruptcy procedures according to the law.

Approving the amendment of the author rights

The Saudi cabinet approves amending author rights law in 2026, as follows:

Extending the copyrighted works:

They include all art, scientific, artistic, digital, audio or video works and software.

Enlisted online digital and creative works at the legal coverage.

Reinforcing moral rights of the author:

The right of attributing the work to its holder and stating its name or a nickname.

Preventing amendment, dissertation or deletion of the work without the author consent.

The right of work withdrawal or amendment upon the author discretion.

Those rights become permanent and irrevocable.

Reinforcing financial rights:

Exclusive right of using the work commercially (sale, license, distribution, performance, distribution)

Regulating financial rights transfer through written contracts that define the term and the field.

The license includes translation, commercial quotation and digital issuance.

Regulating related rights:

Protecting rights of artists and performers.

Protecting the producers of audio and video recordings and broadcasting rights.

Updating exceptions:

Works are permitted to use in limited non-commercial or educations uses.

Treating the challenges related to artificial intelligence and modern technologies.

Tightening sanctions on violators:

Fines up to 250,000 riyals

Confiscation of violating editions and closing the violating establishments.

Imprisonment for up to 6 months, while the sanction shall be doubled in a case of repetition.

Reinforcing legal actions and administrative settlement before litigation.

The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:

Capital Market Authority approves the regulations for the enlisted companies, investment funds and special purpose establishments’ ownership of properties in the KSA

Capital market authority approves the regulations for the enlisted companies, investment funds and special purpose establishments’ ownership of properties in the KSA, including Mecca and Madinah. Those regulations shall be enforceable from the date of enforcement for non-Saudis property ownership law issued by the royal bylaw number (M/14) dated to 19-01-1447H.

The regulations for enlisted companies, investment funds and special purpose establishments’ ownership of properties in the KSA shall replace the special conditions with the exception of the companies which are enlisted in the Saudi Capital Market of (non-Saudis) according to non-Saudis ownership and investment of properties issued by the authority board decree in January, 2025.

 The approved project aims at regulating ownership of properties by the companies which are enlisted in the Saudi capital market according to the companies law, and the investment funds in addition to the licensed special purpose companies, and acquiring other material rights of the property in the KSA- including both Mecca and Madinah- that will contribute in reinforcing capital market competence, attracting investors and reinforcing its competition both nationally and internationally.

The authority points out that those regulations don’t affect the foreign investor, the enlisted companies, the investment funds and the special purpose establishments, in addition to the capital market establishments compliance with the related laws, regulations and instructions, especially the law for non-Saudis ownership of properties and its executive regulations, whether at practicing their activities or at their dissolution, for keeping organizational coherence and reinforcing clarity of regulative frameworks for properties ownership in the KSA.

Those regulations come with the issuance of the law for non-Saudis ownership of properties which is enforceable from January, 2026, as it grants the authority the right of issuing the regulations for enlisted companies, investment funds and special purpose companies ownership of properties in the KSA according to the fourth article, as an extension of the related regulations for non-Saudis ownership of properties, without creating new regulations.

It is expected that those regulations shall motivate investment, reinforce international investors’ contributions, improving foreign capital flow to the Saudi capital market, also support national economy, and real estate sector development, according to the Saudi Vision 2030 for developing financial sector.

Capital Market Authority extends the discharge from charges on issuance of debt instruments and bearing the registration and enlistment charges for defined editions until 2027 

Annexed to the capital market authority decree which is announced in July, 2020, for discharging enlisted companies from paying the charges to the authority for one year, and the debt instrument exporters to the end of 2025, the capital market authority approves extending the discharge from the charges paid to the authority, while bearing the charges of both Saudi capital market company (Tasawol) and instruments deposit center (Edaa) for the applications of debt instruments issuance, in a condition that the exporters or editions attain a present and expressed credit categorization by a licensed categorization agency according to defined regulations, until the end of 2027.

The decree aims at supporting and developing instruments and debt instruments market, encouraging exporters to join it, that contributes in reinforcing its attractiveness and extending the base of national and international exporters and investors, in addition to increasing the companies competence to have a long term finance in a competitive cost, and encouraging companies to have a credit categorization, that raises the quality of editions and improves exposure levels, in addition to reinforcing investors’ confidence.

Capital market authority defined the issuances which are included in this decree, to the debt instruments for non-governmental bodies which are enlisted for the exporter or the issuance who have a credit categorization from a licensed credit categorization agency, while that categorization should be present and expressed, as the authority shall bear the charges for only two editions per each exporter.

For the special issuance applications which are included in the decree, the authority defines them to the debt instrument issuances to non-governmental bodies which are issued for the exporter or the edition that have a credit categorization from a licensed credit agency, and which size doesn’t exceed 500 million Saudi riyals, while that categorization should be present and expressed, for only two editions per exporter.

The authority shall bear the charges for both Saudi Capital market company (Tadawol), and capital deposit center (Edaa) for total public and private issuances, to the maximum of five million riyals till 2027, while issuance applications that exceed that limit shall be considered.

Recent development in the instruments market and debt instruments, in addition to the discharge in the previous years, results in a noticeable development in instruments and debt instruments market in the KSA, as the number of those editions increased from 32 in 2021 to 118 at the end of the fourth quarter of 2025, that extends the size of instruments market and the debt instruments market issued by the companies from about 90 milliards to about 132 milliard riyals at the same period, in addition to the increase of the enlisted issues circulations ratio from 0.46% to more than .90%.

   The exporters who have the credit categorization are about 60%, that reflects the awareness of exported companies about the importance of categorization and its role in reinforcing editions attractiveness and increasing the transparency and risk assessment level, in addition to the increased preference of investors to the categorized instruments compared to non-categorized ones, as the most transparent ones according to the level of risks and credit quality.

It is worth noting that the discharged charges in a case of public issuance of the source or the edition that has a present and an expressed categorization by a licensed categorization agency is about 400 thousand Saudi riyals, while in a case of the special issuance of the source or the edition with a present and an expressed categorization by a licensed categorization agency is about 60 thousand riyals for the editions which don’t exceed 500 million riyals.

This decree completes the previous efforts which are made by the authority to encourage new exporters to the market and relieving financial burdens related to the issuance processes that contributes in reinforcing market attractiveness and motivating issuances and the increase of instruments and debt instruments marker, in addition to empowering it to perform its role as a basic channel for financing economic and developmental activities in the KSA, according to the targets of developing the financial sector in the Saudi Vision 2030.

Legal Information about Commercial instruments  

Value is not enough to consider the instrument as a commercial instrument, as the regulative standard is related to its purpose.The commercial instrument represents what is allocated for investment and circulation in the markets such as shares and assets.For the instruments which function is limited to payment, insurance or security, they are not enlisted in the concept of financial instruments.The regulative instrument according to the third article of the capital market system (commercial instruments such as checks and money receipts or order instruments, in addition to instrumental bonds, and cash transfers, the instruments which are circulated by the banks and insurance policies aren’t considered financial instruments)

The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:

The documented contract is an executive deed

The initiative of “the documented employment contract is an executive deed” is launched according to the specialization of the ministry of human resources and social development for regulating and protecting the labor relationships, in cooperation with the ministry of justice, that initiative will result in acquiring the documented employment contract at “Qiwa” website shall represent an executive deed according to the related laws.

Upon that initiative, the salary article which is stated in the contract- that includes the basic salary, the housing allowance and the transport allowance, in addition to other cash allowances- if found- shall represent an enforceable undertaking, that obliges the employee to file an execution application directly through Najez website, without the requirement of filing a labor claim or filing additional documents, when it affirmed that the employer violates the payment undertaking.

The violation is affirmed in a case of 30 days pass from the due date for the entire salary payment without paying it, or a passing of 90 days in a case of partial payment, while the payment shall be verified electronically through the technical link of “mudad” website which is approved for salaries management and the salaries protection program. For benefiting from the executive form, the court should be documented at Qiwa website according to the unified executive employment contract and the issuance of an executive number for the contract through the documentation website at the ministry of justice. The employer may object it or pay the salary in five days from the date of the enforcement application acceptance.

That initiative is a binding regulatory tool for the fast payment of salaries, and the enforceability of the contracting justice principle, in addition to the protection of labor rights, according to the objectives of the Saudi Vision 2030, for development and stability of job market.

Saudi Central Bank prohibits request for enforcement of promissory note when financing credit cards of individuals

Saudi Central Bank (SAMA) issues an official generalization that obliges finance authorities to stop requesting enforcement of promissory note or any commercial notes from individual customers at providing credit cards finance production, according to its supervisory and control role at the financial sector.

The Central Bank explains that the generalization is issued upon the authorizations granted to it according to the Saudi Central Bank system, banks control system, finance companies control system, in reference to the instructions for dealing with request for promissory note, in addition to the responsible finance principles for individuals, after observing the spread of irregular practices which are represented in the condition for having request of promissory note of customers, at granting credit cards finance.

The generalization asserts that finance authorities should undertake with all related laws and instructions, and should update their policies, procedures, and internal controls that ensure not demanding any irregular commercial guaranties at presenting that financial product.

The Central Bank points out that this direction shall be enforceable from 1^st February, 2026, while obliging financial authorities to provide it, through the department of customer protection supervision, with a plan for correcting the present situations not later than (30) thirty days from the generalization date, while the plan should include- at minimum- returning or terminating request of promissory notes or commercial notes which have been previously attained from individual customers, that contradict the generalization.

Also, the generalization asserts that the plan for situation correction shouldn’t be exceed six months from the date of the generalization issuance, asserting that in a case of failure to undertake with its content, the authority shall be exposed to disciplining according to the applicable laws and instructions.

Approving Sport Law Draft

Royal bylaw number (M/121) is issued on 10-06-1447H to approve the draft of the sport law, that represents a critical regulative step that aims at developing the sport sector, and raising its competence, in addition to reinforcing the principles of governance, and adapting a regulative environment that attracts investment according to the targets of the economic development and the KSA Vision 2030.

 The sports law represents a comprehensive legal framework that regulates varied sport identities, reinforces the concepts of professionalism and financial sustainability, and ensures rights protections at the sports system. The law establishes a group of essential legal principles that aim at regulating and upgrading the sports sector.

The law defines the sport identities which are governed by its rules, and which are represented in the Olympic and Paralympic Saudi Committee, sport federations, sport clubs, and links, asserting the independence of sport federations as non-governmental identities which enjoy the legal identity and financial and administrative independence. It is the concerned authority with managing and regulating its sport in the KSA according to the approved regulations and rules. Also, the law permits the clubs and the sport links to be transformed from non-profitable identities to sport companies, according to defined regulations that include registering the company and its articles of association at the national register of sport, undertaking with the minimum capital and undertaking with the regulations for foreign partner or investor participation. This direction represents a critical step towards privatization of the sport sector, reinforcing investment attractiveness and raising the level of competitiveness and financial sustainability.

For protecting human resources at the sport sector, the law obliges the ministry of sport in coordination with the public authority for social insurance and the insurance authority to register the players, the trainers and the employees at the sport sector, and providing the suitable insurance coverage to them. Also, the law regulates rights and liabilities of professional players and trainers that contribute in providing a stable and professional work environment at the sport system. For discipline and dispute resolution, the law reinforces sport justice and discipline through approving the Saudi Sport Arbitration Center which is a specialized authority for deliberating and resolving sport disputes, in addition to regulating violations and sanctions which may include financial sanctions, halting, or license termination, that reinforces compliance and transparency in the sport sector.

For the stage of complete compliance, the law obliges all individuals and identities governed by its rules to correct their situations according to its rules in one year from its enforceability law, while that period can be extended by a decree from the minister of sport. The first regulative step which is required from sport clubs, is to revise their legal and organizational positions, and evaluate the extent of their internal regulations and bylaws agreement with the new sport law, in addition to commencing restructuring and reorganizing them, and commercial transformation- when required- to ensure complete compliance before the completion of the situation correction term, and using the investment opportunities which are provided by the law.

Legal Information:

Taking the oath of legal identities

Legal identity- such as companies, foundations, associations and governmental authorities- are treated as an independent identity from natural identities that are in charge of them.

The oath can be directed to the legal identity through its legal representative or the one who manages the disputed work, as the legal identity doesn’t give the oath itself. The oath isn’t directed to the governmental authorities, as they represent the public interests, but it is enough to provide official documents and evidence.

The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:

Saudi Central Bank “Sama” issues the executive bylaw for updated finance companies law

That is upon its supervisory and control role at the finance sector, and the continuous efforts to support the sector continuity and development.

The updates include regulating the requirements for practicing all finance activities, amending the finance sum which the company may file, in addition to supporting the companies that apply for license through amending the bank bond letter which is required at filing the license application. Also, the update includes revising the regulations concerning the related parties, and pointing out the cases of finance companies license termination.

The executive bylaw for updated finance companies control law supersedes the regulations for organizing small micro-consumption finance companies, and the regulations for practicing tiny finance activity, in addition to amending the regulations for activities that support finance activity.

Legal consequences:

Strict control on finance companies to ensure compliance to laws.

Raising the level of compliance and the regulative requirements of finance companies and establish clear and accurate licensing procedures that lessen legal disputes.

Relieving customer risks through regulating securities and controlling tiny finance activity through clear and flexible rules that support beneficiaries’ protection development.

Ministry of municipality and housing commences issuing the first invoice for white land charges from 1^st January, 2026

Ministry of municipality and housing asserts that the issuance of the first invoice for white land and vacant properties invoice in Riyadh will commence from the 1^st January, 2026 for the lands which are located at the covered geographical zones.

The ministry points out that the system allows the payer to apply for an additional period for development after the invoice issuance, according to the approved regulations. Also, he may object the invoice in 60 days from the date of notification, while his objection shall be decided in a similar period.

It points out that the charges are applied on the lands which are larger than (5,000) square meters inside the announced zones in Riyadh, upon five groups according to the urban development priority, in 2.5% to 10% of the land value.

The ministry states that the application of charges aims at motivating non-used lands development, limiting monopoly, and increasing property offers, that contributes in marker stability and achieving urban development and quality of life targets.

Legal consequences:

Application of a regulative financial undertaking for white land charges on the lands which are covered by the defined zone starting from 1^st January, 2026.

The buyer can apply for development additional period and the right of objection in 60 days, while the authority undertakes to decide it in a similar period.

Ministry of municipality and housing updates the conditions for private educational facilities for regulating establishing and operating national educational facilities

That update aims at:

Regulating the establishment and operation of educational facilities according to the Saudi Construction Code.

Reinforcing educational environment quality and safety standards.

Facilitating investment in the independent education.

Raising level of compliance and treating visual deformity.

Legal consequences:

Application of a binding undertaking on the owners and the establishers of the independent educational facilities for undertaking with new conditions which agree with the Saudi Construction code

The condition of having a license according to the updates regulations before establishing or operating the facilities, with strict control and compliance to the standards of safety and quality.Legal discipline in a case of violation, where the discipline may include halting the license, not renewing it or imposing sanctions.Best regulation of the independent education market that supports controlled investment and raising the level of compliance.

Ministry of environment, water and agriculture launches the service of leasing animal project

The service enable the tenant, whether an individual or business sector to have a permission for leasing animal project during the lease contract or the operational license term.

That service aims at:

Ensuring that the leasing process is made according to the regulations and the standards of the ministry that preserves the rights of the landlord and the tenant and achieves compliance to the laws.

Enabling both the landlord and the tenant to apply electronically for having the lease permission easily and quickly without the need to complicated paper procedures.

Legal consequences:

Documenting and regulating the contracting relationship between the project and the tenant through an approved regulative permission.

Protecting the rights of both parties through regulating the leasing contract by the ministry regulations and the compliance standards.

Decreasing disputes through confirming the tenant regulative capacity and the limitations of his responsibility through the contract / license term.

Reinforcing legality of any operational activity in the animal project and ensuring its compliance with regulations and instructions.

The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:

Termination of the private sector foreign labor charges

The KSA terminates the charges imposed on the foreign labor at licensed industrial facilities that is according to a cabinet decree upon a recommendation of the economic affairs and development council. The decree aims at supporting national industrial facilities, reinforcing their international competitive capacity, and relieving operative burdens of factories.

Legal consequences:

Decreasing the expenses of industrial labor

Increasing foreign investment attraction to the industrial sector

It requires updating contracts and internal rules of establishments to ensure compliance to the new system.

New system for property foreign ownership that shall be commenced from January 2026

The Kingdom shall commence enforcing the property ownership of foreigners from 1^st January, 2006. The system shall allow non-Saudi residents to own on housing unit in most cities, with special exceptions in Mecca, Riyadh and Jeddah. It also allows foreign companies to own commercial, industrial and agricultural properties at the locations defined by the concerned authorities.

The system includes registration charges up to 5% of the property value, and sanctions that include fines up to 10 million riyals or the judicial sale of the property in a case of misleading information

Legal consequences:

A great transformation in the policy of foreigners’ ownership of properties that reinforces foreign investment in the Saudi real estate market, the necessity of updating real estate policies for foreign companies and investors before executing bargains

Application of a new selective tax system on sweetened beverages

Selective tax system shall be applied on sweetened beverages through a new graded form that depends on the sugar content per 100 millimeters, instead of the old system which is fixed on 50% of the price.

The system is applied in cooperation between tax authorities, ministry of industry, ministry of health, Zakat and Customs.

Legal consequences:

Beverage manufacturers and importers are required to update the product information and re-categorizing them according to the sugar content.

The new system aims at encouraging less sugar products and supporting public health policies.

Important updates to the labor law

Recent updates to the Saudi labor law for 2025 include:

Decreasing the period of litigation and the claims for wages and dues to three months unless there is fraud

A law is issued to oblige employers to file a detailed annual report about their undertakings with the Saudization ratio.

Strict new mechanisms are allocated for freelance contracts to ensure social and tax rights of employees.

Now, judgments of labor disputes settlement committee are enforceable directly through the enforcement courts without the necessity of waiting for years.

Legal consequences:

It reinforces rights of labors and decreases judicial delay.

It increases the compliance requirements for companies and decreases fraud in the Saudization system.

It provides legal explanation for applying new standards.

Saudi authorities announce amendments at the labor law that includes new financial sanctions on the businesses that violate operation rules, to include:

A fine up to 200,000 riyals is applied on the one who recruit people without a license.

A fine up to 250,000 riyals is applied on non-licenses recruiting services.

Fines from 10,000 to 20,000 riyals in a case an employer allows an employee to work at another region without a license.

Fines for non-compliance with maternity rights (for example, child care) from 1,000 to 3,000 riyals

Fines for not verifying internal investigations in misbehavior cases inside establishments

Legal consequences:

Reinforcing labor protection

Motivating companies to the compliance with recruiting and hiring procedures

Raising regulative responsibility of employers

“Legal Information”

Registration of property dealings at the property register is a binding condition to be enforceable at confronting others at the Saudi law, while no non-registered deal shall be alleged upon the application of the property registration law.