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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:

Issuance of occupational fitness and non-infectious diseases examination bylaw  

National Occupational Safety and Health Board issues the bylaw for occupational and non-infectious diseases examination, according to the national policy for occupational safety and health issued by the cabinet decree number (328) dated to 13-6-1442H, and the organization of boards by the cabinet decree number (379) dated to 7-7-1443H, also in according with the labor regulations and the related executive bylaws.

The bylaw aims at reinforcing protection of labor health in all labor sectors, through establishing a framework for assessing physical and mental health of workers, and ensuring their capability for performing their job duties securely and effectively. Also, it aims at limiting occupational diseases and injuries, and reinforcing compliance to national and international standards in the field of occupational safety and health.

The bylaw obliges all governmental authorities, private sector establishments and non-profitable organizations to perform medical examinations for occupational fitness in the following cases:

• Before hiring or employing.
• Regularly for workers in high-risk or confined professions.
• Upon returning from a long-term sick leaves or in a case of suspecting physical unfitness.
• Upon changing the profession or the work environment or using new equipment.

The bylaw also asserts the confidentiality of medical records, and the necessity of keeping them according to the personal information protection rules, while the employer shouldn’t examine the medical details but he only examines the final result of examination (fit- fit with limitations- unfit).

It points out that the examinations include general medical examination, laboratory and x-rays examination, specialized examinations according to the profession nature, and regular protective examinations, according to approved forms that consider the level of exposing to occupational risks.

The bylaw asserts the employers responsibility for providing the required resources for examinations, supporting compliance to occupational safety and health requirements, ensuring secure work environment for employees, and providing substitute jobs for medically unfit employees according to their medical status.

This bylaw is enforceable after (180) days from the date of its publishing at the official journal, as it is considered one of the critical regulative initiatives that reflect the kingdom interest in reinforcing occupational safety and health and protection from work injuries and diseases, according to the KSA vision 2030 towards a secure, healthy and sustainable work environment.

Legal Information

A warning from Properties Public

Authority

The authority warns from collecting money or promotions for real estate contributions without official licenses, considering that as a violation to the law, asserting the necessity of having licenses through the official websites, protecting investors’ money and taking the required actions against violators.

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 law protects the reporters and the witnesses of crimes from any harms

The public prosecutor asserts that the Saudi laws protect the people who notify about the crimes, the victims and the witnesses from any harms that may result from reporting or contributing in discovering crimes. It points out that the law establishes defined procedures and securities that aim at protecting the rights of those people and protecting them from any physical or moral harm, whether during the investigations or after the sentences issuance, that include:

• Preventing watching the witness or the expert when they are present at the court for giving their statement of witness or expertise, or at the time of entering the court, or departing it, or using audio or video means of communication to hear the witness. When required, it may the techniques for changing the voice or the photo for protecting the ones who are covered by the law. It may use the program management for the enforceability of the required actions.

Names of witnesses may be hidden from the court sentence, while in a case that the court or the public prosecutor consider that announcing the identity of the one who is covered by the protection is necessary for practicing the right of defense and the witness or the expert statement is the sole means of confirmation in the case, it shall permit announcing their real identity in a condition of providing the required protection that includes:

Security protection.

Hiding his personal information and each indication to his identity through the protection period.

Transferring him from his work place – temporarily or permanently- through coordinating with his work place.

Helping to have another job, when it is required to leave his job.

Providing legal, psychological and social guidance.

Providing him with immediate notification means to notify about any threats that threaten him or any related person.

Changing his phone numbers.

Changing his residence, temporally or permanently, and providing suitable substitutes including transferring him to another city or location in the KSA according to the state.

Taking the required actions for his safety movements, including providing security companion.

Coordinating with the related authorities for stating the information related to the crime which is the protection subject, by using electronic means, while changing his voice or hiding his face.

Protecting his house.

Helping him financially in a case that the protection hinders him from earning money.

Any other protection which the program management considers suitable according to the bylaw.

Raising awareness about the rights and duties of house labor

Musaned website of the ministry of human resources and social development launches a campaign that aims at raising awareness about the bylaw for house labor and employers rights and duties, to ensure mutual understanding of the rights and the liabilities and improving the contracting relationship between both parties.

The website points out that the bylaw ensures the following for the house labor:

A paid yearly vacation for 30 days.

A weekly rest not less than a day.

A monthly salary at the end of each calendar month.

A daily rest for not less than 10 hours.

A suitable housing and enough meals.

Also, it asserts that the employer has rights that include:

Performing the agreed work accurately and honestly by the house labor.

The house labor undertakes with the instructions and not leaving the work without a justification.

The house labor undertakes not to refuse working or being absent without a prior notification.

Updating the conditions for the occupational workshops doesn’t include selling or marketing

Ministry of municipality and housing announces new conditions for regulating occupational workshops activity which is limited to maintenance and repairs.

Categorizing includes light workshops, for example maintenance of watches, equipment, leather wares, computers, jewelry and bicycles, and industrial workshops, for example, carpentry, blacksmithing, and aluminum, while the latter is governed by the requirements of safety and constructions.

The updates require undertaking with the Saudi code of construction including constructions, electricity, mechanics, ventilation, sanitary sewerage, and saving energy. The designs and the performance should be approved from licensed engineering offices.

The conditions require providing separated reception areas from the work locations, showing products at only the reception area, while undertaking with not more than 50% percentage for showrooms and offices to the maximum of 30% for offices.

The instructions assert providing toilets and bathrooms for workers and visitors of industrial workshops, especially at light workshops, while undertaking with hygiene and correct disposal of wastes.

The conditions require having a municipality license before operating and renewing it regularly. They prevent practicing any non-licensed activity or outside the workshop or using platforms or storing materials which aren’t related to the activity. Also, they prevent removing or covering closing posters, or re-operating before treating wastes, in addition to have the municipality approval.

For appearance and safety, the conditions require that facades should be void of random posters, while they allow only approved boards and information, no parking signs shouldn’t be installed while regular parking shouldn’t be closed. The regulations include undertaking with occupational safety and health requirements, and applying the fire protection code, including warning, fire-fighting and first aid systems.

Weekly News

The law protects the reporters and the witnesses of crimes from any harms

The public prosecutor asserts that the Saudi laws protect the people who notify about the crimes, the victims and the witnesses from any harms that may result from reporting or contributing in discovering crimes. It points out that the law establishes defined procedures and securities that aim at protecting the rights of those people and protecting them from any physical or moral harm, whether during the investigations or after the sentences issuance, that include:

• Preventing watching the witness or the expert when they are present at the court for giving their statement of witness or expertise, or at the time of entering the court, or departing it, or using audio or video means of communication to hear the witness. When required, it may the techniques for changing the voice or the photo for protecting the ones who are covered by the law. It may use the program management for the enforceability of the required actions.

Names of witnesses may be hidden from the court sentence, while in a case that the court or the public prosecutor consider that announcing the identity of the one who is covered by the protection is necessary for practicing the right of defense and the witness or the expert statement is the sole means of confirmation in the case, it shall permit announcing their real identity in a condition of providing the required protection that includes:

• Security protection.

• Hiding his personal information and each indication to his identity through the protection period.

• Transferring him from his work place – temporarily or permanently- through coordinating with his work place.

• Helping to have another job, when it is required to leave his job.

• Providing legal, psychological and social guidance.

• Providing him with immediate notification means to notify about any threats that threaten him or any related person.

• Changing his phone numbers.

• Changing his residence, temporally or permanently, and providing suitable substitutes including transferring him to another city or location in the KSA according to the state.

• Taking the required actions for his safety movements, including providing security companion.

• Coordinating with the related authorities for stating the information related to the crime which is the protection subject, by using electronic means, while changing his voice or hiding his face.

• Protecting his house.

• Helping him financially in a case that the protection hinders him from earning money.

• Any other protection which the program management considers suitable according to the bylaw.

Raising awareness about the rights and duties of house labor

Musaned website of the ministry of human resources and social development launches a campaign that aims at raising awareness about the bylaw for house labor and employers rights and duties, to ensure mutual understanding of the rights and the liabilities and improving the contracting relationship between both parties.

The website points out that the bylaw ensures the following for the house labor:

• A paid yearly vacation for 30 days.

• A weekly rest not less than a day.

• A monthly salary at the end of each calendar month.

• A daily rest for not less than 10 hours.

• A suitable housing and enough meals.

Also, it asserts that the employer has rights that include:

• Performing the agreed work accurately and honestly by the house labor.

• The house labor undertakes with the instructions and not leaving the work without a justification.

• The house labor undertakes not to refuse working or being absent without a prior notification.

Updating the conditions for the occupational workshops doesn’t include selling or marketing

Ministry of municipality and housing announces new conditions for regulating occupational workshops activity which is limited to maintenance and repairs.

Categorizing includes light workshops, for example maintenance of watches, equipment, leather wares, computers, jewelry and bicycles, and industrial workshops, for example, carpentry, blacksmithing, and aluminum, while the latter is governed by the requirements of safety and constructions.

The updates require undertaking with the Saudi code of construction including constructions, electricity, mechanics, ventilation, sanitary sewerage, and saving energy. The designs and the performance should be approved from licensed engineering offices.

The conditions require providing separated reception areas from the work locations, showing products at only the reception area, while undertaking with not more than 50% percentage for showrooms and offices to the maximum of 30% for offices.

The instructions assert providing toilets and bathrooms for workers and visitors of industrial workshops, especially at light workshops, while undertaking with hygiene and correct disposal of wastes.

The conditions require having a municipality license before operating and renewing it regularly. They prevent practicing any non-licensed activity or outside the workshop or using platforms or storing materials which aren’t related to the activity. Also, they prevent removing or covering closing posters, or re-operating before treating wastes, in addition to have the municipality approval.

For appearance and safety, the conditions require that facades should be void of random posters, while they allow only approved boards and information, no parking signs shouldn’t be installed while regular parking shouldn’t be closed. The regulations include undertaking with occupational safety and health requirements, and applying the fire protection code, including warning, fire-fighting and first aid systems.

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 Executive Bylaw for Regulating Housing Support reorders the deserving priorities and reinforces the principle of seniority

A new amendment is issued on the executive bylaw that regulates housing support, including reforming article (thirty) of the bylaw with the aim of regulating the principle of priority among applicants and reinforcing fair preference through approving seniority as a decisive basis in assessing the applications for housing support.

According to the amendment, the applicant is granted one point per each year passes since the date of applying to the maximum of (10) points, where the seniority is calculated from the date of the application completion notification, as the approved official reference for ordering the priority of applicants in “the housing” system.

The amendments also include considering the previous loan applications to the property development fund as one of the criteria for seniority, so that the first application order is reserved when the applicant transfers to the new housing support programs in a step that aims at treating the previous accumulations and protecting the rights of applicants.

The amended bylaw exempted the periods of organizational halting from calculating the points of seniority to ensure accuracy of preference and distracting the effect of administrative stoppage periods on the order of applicants.

At the same context, the bylaw grants to additional points to the applicants who has previously applied for having housing lands without allocating any plots for them by the governmental authorities, while the total of the granted points shouldn’t exceed the maximum points granted to the applicant (10 points).

Those amendments came in the efforts of the ministry of municipality, villages and housing affairs that aim at establishing justice and transparency standards in distributing the housing support, and achieving the housing and social stability according to the vision of the KSA 2030, especially for what is related to increasing the nationals’ ownership of houses and improving life quality.

Warning the property owners who fail to apply for the first property registration

Public authority for properties issues an important decree that is related to the application of the property registration system, to reinforce property transparency and the level of governance in the properties sector.

According to the decree, the authority warns the property owners who didn’t apply for the first property registration through the defined term at the property zones advertisement – no (55) zones – after the completion of the official advertising period.

The authority points out the following:

• Violators are granted a grace time for (90) days from the date of publishing the decree for correcting their situation, through applying for the first property registration for their properties.

• Upon the completion of the grace time without correcting the situation, the sanctions stated in article (35) of the properties registration law shall be applied.The decree is based on

• the royal bylaw number (91-M) dated to 19-9-1443H, and the supreme order number (32043) dated to 5-5-1444H, for approving the principle of warning and granting an opportunity for correcting non-material violations before applying fines or sanctions.

Legal Information

Enforceability on the housing and the vehicle

Some people think that it is impossible to enforce on the house or the vehicle of the respondent whatever the debt amount, but in fact, enforceability can be made on the housing or the vehicle even if the respondent owns only it, that is in defined conditions that include:

– In a case of being mortgaged to the creditor.

– In a case of being surplus to him and his dependents.

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:

 (1) New Regulations for regulating the tenancy market in Riyadh

For enforcement of the directions issued by His Majesty the Crown Prince, Mohamed Bin Salman Bin Abdul Aziz, a number of new regulations are issued to regulate the tenancy market in Riyadh, in a response to the challenges faced recently by the capital as a result of huge raise in the housing and commercial tenancies. The regulations include the following:

• Fixing tenancy prices:
• Stopping the annual raise of the total lease for the (present and new) tenancy contracts of housing and commercial properties in the urban areas of Riyadh for five years commencing from the 3^rd Rabea Akher, 1447H corresponding to 25^th September, 2025. Accordingly the lessor shall not raise the agreed total lease value in present or new contracts from the date.
• Fixing the total value for vacant housing or commercial properties in the urban areas of Riyadh (which were previously leased) according to the tenancy value of the last tenancy contract. The total value of housing and commercial properties (which haven’t been previously leased) is calculated according to an agreement between the lessor and the lessee.
• Necessity of documenting contracts:
• Landlords should document lease contracts at “ejar” website, while tenants have the right of applying for registration.
• Each party may object the contract information at the Public Properties Authority in (60) days from the notification date, while in a case of not objecting, the information shall be considered correct.
• Automatic renewal regulations:
• The tenancy contract shall be renewed automatically in all cities of the KSA, unless a party notifies the other that he doesn’t intent to renew it at least (60) days before the date of the contract completion.
• In the scope of Riyadh, the landlord shall not reject the contract renewal in a case of the tenant intent to continue it, unless in defined cases which include the tenant failure of payment, or in a case of structural defects that affect the property safety, or in a case of the landlord or any of his relative of the first keen to occupy the unit.
• Objecting the lease value:
• The landlord may object the lease value in contracts other than the present ones in a case the property has material restorations, or in a case of another contract is made before 2024, or according to what is decreed by properties public authority.
• Violations and Fines:
• Applying a fine up to the lease value of (12 months) on violations, while correcting it and compensating the damaged party.
• Granting a reward up to (20%) of the collected fine to the one who reports a violation that results in issuing a final decision of its confirmation.

Those regulations represent a material step for rebalancing the tenancy market in Riyadh, and ensuring justice and transparency in contracting relationship between the landlord and the tenant, that reinforces secure investments and supports sustainable urban development, to achieve the goals of the KSA vision 20230 including upgrading life quality and regulating property sector.

(2):  legal Information

The manager and the board of directors are jointly liable for compensating the company, the partners, the shareholders or others against the damages resulted from violating the company bylaw or its articles of association, or resulted from their mistakes or omissions or their short performance of their duties, while any contrary condition shall be null.

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:

 “Qiwa” launches the service of “job market inclusion” to enable absent employee transfer their services to a new employee.   

 “Qiwa” website which follows ministry of human resources launches a new service in the name of “Job market inclusion” that aims at enabling resident employees who are absent from their work to transfer their services to a new employer and making a new contract, in a condition of 12 months pass from the date of the employee entry to the KSA before work stoppage or terminating the contracting relationship.

The service includes the following categories:

• The employees whose status is transformed to job absentee after the completion of the grace period for 60 days, as a result of work absence of the ones who don’t have documented contracts.

• The employees whose documented contracts are completed and their status is transformed to work absentee after the completion of the grace period.

• The employees who were absent from the work before launching the initiative of work absence, including the reports issued outside Qiwa website.

The employees who are absent because of the final departure visa are excluded. The website asserts that the service is permanent and not a temporary one. It enables the employee to re-contract with a new employer when he meets the regulations.

For the money charges, Qiwa website points out that:

• The charges is the responsibility of the previous employer in a case that the employee status is “currently working at the establishment”

• The charges is the responsibility of the new employer in a case that the employee status is “absent from the work”

• Also, the charges is the responsibility of the new employer in a case that the employee is registered at a non-existing or under establishing establishment.

The commerce: Imprisonment for 3 years and a fine of a million riyals in a case of fake offers

Ministry of commerce asserts that electronic stores and facilities should undertake with the conditions that regulate commercial competitions.

The ministry spokesman points out that those conditions include the necessity of having an electronic license from the commercial chamber before the competition, in addition to explaining the method of participation, the category of prizes awarded to the winners, the commencement and the completion dates for the competition. The ministry asserts that in a case of not undertaking with the conditions, the prizes shall be given under its direct supervision. He states that the conditions that regulate commercial competitions include prohibiting making a condition of increasing the prices of products for participants to enter the competition. Also, department stores should publish the license number at the competition advertisement, and undertaking with all instructions issued by the ministry of commerce, according to the ministry of commerce announcement on the date of Monday, 22^nd September, 2025 (30^th Rabea Awal, 1447H)

Legal News:

Competition law prevents companies from conspiring to kick out rivals from the market, or to use the dominant position for limiting the competition or dominating the market.

According to the law, the violations include:

Selling in prices less than the cost to expose rivals to losses.

Limiting prices or conditions in a way that hinders new rivals entry.

Unfairness with clients that violates the principle of market fairness.

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 issues a bylaw to regulate agreements of offsetting and arrangements of financial guaranties

Capital market authority issues a new regulatory bylaw that aims at regulating offsetting agreements and the arrangements of financial guaranty related to qualified fiscal contracts. It ensures the enforceability of those agreements outside the scope of bankruptcy procedures, but through its context. That is made in coordination with the central bank and the ministry of commerce, according to the capital market and the bankruptcy regulations. 

The bylaw defines the basic concepts, such as offsetting, qualified fiscal contracts, guaranty and multi-party offsetting agreement. It also defines the rights of agreement parties- especially non-bankrupted party, in the offsetting performance and keeping guaranties, even in a case that the other party begins bankruptcy procedures at that time of amends those rights. 

The bylaw asserts that the rules of the offsetting agreements and the arrangements of fiscal guaranty are enforceable and applicable according to their conditions and aren’t affected by bankruptcy unless in the cases of fraud which is confirmed by clear evidence.

The bylaw includes an annex for qualified financial contracts, that includes more than 25 categories of financial contracts and dealings, for example: currency derivatives, contracts of goods, credit derivatives, re-purchasing agreements, dealings that agree with the Islamic law, such as Murabaha and compromise.  

The bylaw represents a critical regulating step for supporting financial stability in the KSA, and reinforcing confidence in fiscal dealings among establishments, especially emergency or insolvency cases.  

Capital Market Authority of the KSA approves amendments to the regulations for foreign investment in securities

The regulations aim at regulating foreign investment in securities, debt instruments, and investment funds. The aims of those amendments are as follows:

Motivating investment, encouraging foreign capital flow to the Saudi market.

Raising attractiveness and competence: making the market more attractive for foreign investors and improving operating competence.

Reinforcing competition: reinforcing Saudi market competition at both national and international levels.

The amendments include:

Extending investment channels: extending foreign investment scope by permitting foreign natural and legal identities, whether residents or non-residents to invest in securities, debt instruments and investment funds, considering those regulations.

Limitations on Ownership percentage: no non-resident foreign investor (in the exception of the foreign strategic investor) shall own 10% or more of any shares of any registered source or transferable debt instruments of the source. Also, foreign investors collectively (of all categories, whether residents or non-residents, except foreign strategic investors) shall not own more than (49%) of the shares in any registered source or its transferable debt instruments.

Categories exempted from the assets condition: 

There are exempted categories from the required minimum assets value condition (a million riyals) for the qualified foreign investor, including: retirement funds, Waqf funds, customers of market makers, governmental authorities, central banks, sovereign funds and international organizations and their foundations.  

Facilitating mutual agreements:

Capital market foundations are permitted to make exchange agreements with foreign counterparties only for the interests of non-resident foreign investors, to transfer the economic interests of the market securities to those investors as the end beneficiaries through exchange deals made under the exchange agreements.

Discharge and grievance: 

The authority may discharge any person from the applicability of any of those regulations whether entirely or partly, by an application or an initiative from him. Any person who is governed by those regulations may file a grievance to the committee from any decree or an action taken by the authority according to those regulations.

Exceptions from the regulations:

The regulations aren’t applicable on the GCC nationals.

Those amendments are considered of the efforts to make the Saudi capital market an attractive and motivating investment direction according to the KSA vision 2030 that aims at variation of national income sources.  

Legal Information

In labor cases, in a case that the employee or the employer doesn’t file the claim in 12 months from the date of the employment relation completion, the claim shall fall automatically, but there are exceptions that permit accepting the claim after that period, the exceptions include:

The presence of a justified excuse that prevents filing the claim (sever disease or imprisonment)

 In a case of the employer promise to settle down the rights, but he doesn’t respect his promise.

 In a case that the employee doesn’t recognize his rights because of the employer deceit.

In a case that the claim is for amounts which are reserved at governmental authorities, such as social insurance or banks.

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:

 (1) The Cabinet approves property expropriation law for the public interests and temporary possession

The Saudi cabinet approves the law for property expropriation for the public interests and the temporary possession for using the property and achieving the public interests for a defined term without property transfer, while the owners shall be compensated fairly with a compensation which isn’t less than similar property, in addition to 20% of the charges, and a compensation for the resulted damages.

The law also defines the public interests as everything that achieves public benefits for development and progress and making the community the priority, or everything that avoids public harms, such as crisis, epidemics, etc.

 (2) No protection for products which are originated entirely by the artificial intelligence

Saudi Intellectual property authority issues new guidelines where it points out that the legal protection according to the author rights law is limited to the products which resulted from original human participation. It affirms that the products which are resulted entirely from artificial intelligence without a human interfering shall not be covered with protection. It points out that the outputs shall be protected in a case that their production includes guiding creativity or artistic composition from man that reflects his/ her ethical selection. That direction agrees with the international practices and aims at reinforcing legal transparency and supporting creativity environment in the kingdom.

(3) Legal Information

In a case that a shareholder’s share is limited to his job, and the company articles of association don’t define his share in the profits or loss, his share in them shall be similar to the share of the least capital shareholder. In a case that the shareholder provides- in addition to his job- cash or material share, he shall have a portion of profits or losses according to his share in the job and another share for his cash or material share.

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 Amendments of the Regulations for Foreign Investment in Securities

Capital Market Authority Board issues a decree dated to 26^th May, 2025 (18-11-1446H) for approving amendments of the regulations for foreign investment in securities, according to the capital market law issued by the royal bylaw number (M/ 30), dated to 2-6-1424H.

The decree includes: Enlarging the scope of foreign investment by permitting foreign natural and legal identities, whether they are residents or non-residents to invest in the presented securities, debt instruments and investment funds, according to the compliance with the related regulations.

Limitations on the ownership percentage:

No non-resident foreign investor- with the exception of the strategic investor- shall own more than (10%) of shares in any transferable exporter or debt instruments.

Total properties of foreign investors- of all types- shall not exceed (49%) ofshares in any registered exporter.

Exempting the foreign strategic investor, who keeps shares for not less than two years

Regulating Exchange Agreements: 

The regulations permit capital market foundations to make exchange agreements with other foreign parties, that allows non-resident foreign investors to have the economic interests of enlisted securities, while there are accurate conditions related to voting, separating customer capitals, and anti-money laundry conditions.

Discharging and Grievance:

The regulations permit the authority to exempt any person from the applicability of its regulations whether entirely or partly. They permit grievance from any decree of action taken by the authorities according to those regulations, at the concerned committee.

Transparency and disclosure:

The regulations oblige the market to publish regular statistics about the foreign ownership and strategic investors, in addition to the regulations imposed on registered companies at its website.

Approving those amendments is a step of the capital market authority efforts to reinforce Saudi market attraction of foreign investments, upgrading competence and market depth, and supporting its stability according to the KSA vision 2030 that aims at making the Saudi Capital Market a national and international financial center.

Ministry of Commerce points out the steps and the conditions for electronic reservation of a trade name through Saudi Business Center Website

Ministry of commerce announces the mechanism and the steps of reserving a trade name for commercial establishments electronically through the website of Saudi Business Center, asserting a group of conditions and regulations which should be considered.

The ministry points out that the conditions of applying for the service include the following:

The applicant shouldn’t be younger than 18 years.

The applicant should be the beneficiary of the trade name or its representative.

They point out that the trade name should be formed of Arabic or Arabized utterances or of Arabic letters or numbers, or a mixture of them. In a case of English names, they should be formed of utterances, letters or numbers, of a mixture of them.

The ministry adds that the regulations necessitate the following:

The trade name shouldn’t contradict the public system or ethics.

It shouldn’t be misleading or prohibited.

It shouldn’t be similar to a reserved or registered trade name at the commercial register for any activity.

It shouldn’t be similar to any famous international or registered name or trademark in the KSA.

The ministry of commerce asserts undertaking with all conditions and regulations of the commercial laws at choosing and registering a trade name.

Legal Information:

Reasons for terminating contracts according to the law:

misleading: hiding a defect which the purchaser cannot discover before contracting, for example: hiding a defect of the sold product that results in a damage.

Deceit: selling a product with a deceiving appearance, for example: selling a product without unknown result (selling an animal embargo or fish in water)

Injustice: greater increase or decrease in the cost that violates justice, for example: selling goods which equal thousands opposite a decrease price.

Defect: the seller hides a thing in the goods, while in a case the purchaser recognizes it, shall not purchase it, for example: hiding a defect in a car or a property.

Ignorance: ignorance of the sold item, the cost or the sale contract, for example: selling a bird in the sky or fish in water.

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:

Regulating Non-Saudis Ownership of Properties in the KSA through the digital ID

The cabinet approves allowing non-Saudi who are non-residents in the KSA to own properties by using the digital ID, while the public property authority shall coordinate with the ministry of interior and the Saudi Authority of Information and Artificial Intelligence (Sdaia), the National Information Center, and the related authorities, to establish the required mechanisms for activating that ID, to ensure that it is ready to be applied before the enforcement of the non-Saudis ownership of properties system.

Also, the cabinet approves the decree of the strategic committee at the economic affairs and development council about the governance of non-Saudis ownership of properties and using them, and forming a specialized committee from the public properties authority board to perform the related tasks, while the authority board shall complete the required actions for forming that committee and shall define its regulating roles.

At the same context, the board of the public property authority was re-formed under the presidency of the authority CEO, and in the membership of two representatives for the following governmental authorities:

Ministry of interior

Ministry of municipality and housing affairs

Ministry of finance

Ministry of justice

Ministry of economy and planning

Ministry of investment

Ministry of environment, water and agriculture.

Ministry of industry and mineral resources.

State properties public authority

Public authority of surveying and geospatial information.

That is in addition to three members from the related private sector to the authority activity.

It is indicated that last July, the cabinet approves the law for non-Saudi ownership of properties, while it shall be enforceable from January, 2026.

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Updates of the private sector salaries protection program

Ministry of human resources and social development announces important updates in the salaries protection programs that aim at reinforcing compliance and securing the rights of the private sector labor.

According to the program guidelines, paying unfair basic salary to the labor shall be considered a violation, and shall be automatically registered at the register notifications at the violations page, especially when it contradicts other registered information. Also, the notifications include the cases when the total deductions exceed 50% of the salary, or not registering the basic salary in “Mudad” website for more than 90 days, or the absence of a register that confirms the salary is paid to the labor.

In a case that the establishment delays uploading the file of salaries protection for 20 days, “Mudad” program will transfer the case to the inspection department for taking the required action.

Also, a period for justifying the delay of salaries payment is defined to 10 days, while the labor can respond to the justification in 3 days. In a case of not responding, the justification shall be approved automatically.

The ministry confirms that the delay of salaries payment for two months shall result in halting all services of the establishment, with the exception of issuing and renewing employment licenses. In a case of delay for three months, all services shall be halted, while the labor shall transfer his service to another establishment without the need of the present employer approval, even if the employment license is valid.

Issuing the executive bylaw for White Lands Charges 

Ministry of municipality and housing affairs approves the executive bylaw for white lands charges, with the aim of increasing the offers of developed lands and achieving balance between offer and demand, in addition to reinforcing competition and facing monopoly.

The bylaw includes a developed mechanism for applying charges, as it divides geographical areas into layers according to the urban development priorities, while annual charges up to 10% of the land value shall be applied on the critical priority layer.

The ministry revises the property information regularly, to include the availability of units and lands, size of treatment, monopoly practices to define the scope of applying, amending or suspending the charges.

The bylaw defines five conditions so that the white lands are governed by the charges, including that its area or total lands owned by one landlord in the city scope shall not be less than 5,000 m2. Also the bylaw considers the presence of regulatory prevention or obstacles against the development, in a condition that the landlord doesn’t cause it. An additional period may be granted for achieving development according to the land nature.

The charges application shall be halted in a case of achieving land development or building in the defined period for payment. Also, the procedures for developing lands are facilitated through the developers service center “Etmam”, which facilitates issuing licenses and plans through the one website. The ministry invites landlords to register their lands through the website for white lands charges in the defined period which is announced at the official coming announcements.