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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:

 (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.

Do you want to add a legal stamp or signature, or to transfer it to a formal form?

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.

Recreation authority defines a financial threshold up to one million riyals for the violations of recreational activities 

Recreation public authority works for preparing the regulations for violations and sanctions of auxiliary recreational activities. They include fiscal sanctions up to one million riyals. That comes in its efforts to regulate and develop that sector and reinforcing its outcomes.

The regulations include 385 violations

The regulations draft which is currently opened for the stakeholders discussion, include (385) violations that deserve fines in varied recreational sectors. They include behaviors that contradict Arabic and Islamic identity of the KSA, where the violators are punished with a financial fine up to one million riyals, or a non-financial sanction, or both, according to the assessment of the committee that deliberate violations.

Categorizing cities and principles for applying sanctions

Cities are categorized into two groups:

First group: main cities (Riyadh, Jeddah)

Second group: other cities and locations

The regulations make a condition of applying warning before applying the sanctions in a case of non-material violations, while granting a corrective period according to the assessment of the violations treatment committee. In a case of repeating the violation in a calendar year, or not correcting it in the allocated period, the sanction shall be doubled, while that can be exempted according to the committee assessment.

Threshold of financial sanctions according to the establishment size

Material violations:

Large establishments: up to 1,000,000 riyals

Medium size establishments: up to 759,000 riyals

Small establishments: up to 500,000 riyals

Very small establishments: up to 250,000 riyals

Non-material violations:

Large establishments: up to 400,000 riyals

Medium size establishments: up to 300,000 riyals

Small establishments: up to 200,000 riyals

Very small establishments: up to 100,000 riyals

Additional regulations and instructions:

Applying non-financial sanctions until correcting or removing the violation.

Halting the recreational or the auxiliary activity with an immediate effect as precaution action.

Grievances shall be available for 10 days from the date of the decree.

Sanctions which are less than 10,000 riyals are issued with an immediate effect without advising the committee.

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Material amendments to the documentations, arbitrations and attorney laws include division of common money, power of attorney and attorney fees

The concerned authorities approve important amendments to the documentations, arbitration and attorney systems, they include a number of articles related to division of common money, accepting donation, duties of notary public, legal power of attorney period, and the attorney fees.

First documentation law:

The amendments include the following articles:

Paragraph (6) of article (11): refers to the duties of the notary public to include division of common money- including properties- in a case of a dispute or in a case of Waqf share or a will, or in a case of incompetent or absent parties.

Article (12): the amendments state that the notary public shall not document a statement or a contract when one of its parties is incompetent or absent, or a manager of Waqf or a will, with the exception of the following cases:

accepting the grant

The father actions in the money of his incompetent son.

The seller statement for an incompetent deceased and collecting the cost before the death.

When the property is withheld for public interests (when the substitute isn’t a property)

Lease contracts which don’t require the concerned court permission.

Article (38): becomes as follows the period of the power of attorney is for five years from the date of its issuance, unless it is terminated or one of its party’s death or in a case of losing his capacity or in a case the authorizer defines a shorter period.

Paragraph (2) of article (40): the amendments assert that the contract forms should permit contractors to add any condition or agreement, unless that contradicts the regulatory texts.

Second: Arbitration law

Paragraph (1) of article (10): is amended to become: “agreement of arbitration shall be made only from competent parties, whether legal or natural identity”

Sub-article (b) of paragraph (1) from article (50): becomes in a case that one of the arbitration agreement parties is incompetent at the agreement according to the competence law, the agreement shall be null.

Third: attorney law

Article (18): is amended to limit the practice of pleading at courts and department of grievance and the concerned committees to the attorneys who are registered at the practitioner table, with the following exceptions:

Spouse, brother in law, or relatives to the fourth keen.

Regular representative of the legal identity.

 Guardian and the manager of Waqf in the cases of wills and administration.

Money department responsible according to his regular duties.Article (26): the amendments assert that the attorney fees and the method of payment are defined by a written agreement with the client. In a case that there isn’t a written agreement or it is null or terminated, the court shall assess the fees upon the demand of any party, according to the attorney efforts and the benefits for the client. This rule is applied on the sub-claims resulted from original claims.

_______________________________________________________________________

Legal information:

Article (79) of the civil treatments law allocates two cases for the termination claim falling:

short term (one year):

in a case that the harmed party recognizes the reason that grants him the right of termination (for example: knowledge of forgery or mistake), he should file the termination claim in one year from the date of his knowledge.

In a case that the reason is incompetence or compulsion, the year shall be calculated from:

The date of competence completion (when the minor reaches adulthood age)

Or removing the compulsion (the end of the compulsion for contracting case)

Long term (ten years):

The termination claim shall fall whatever the reasons (except incompetence) with the passing of ten years from the date of contracting, even if the damaged party doesn’t recognize the termination reason.

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:

Non- Saudis Ownership of Properties Law in the KSA

The cabinet approves the law for non-Saudis ownership of properties, as a critical step that reflects the kingdom concern for reinforcing economic openness and attracting foreign investments. That law represents one of the initiatives for the kingdom vision 2030. It aims at reinforcing properties sector and variation of the national income sources. The law allows non-Saudis to own properties or to acquire material rights in the KSA, according to clear criteria, while it asserts undertaking with the following:

Real estate ownership rights which are related to a regular capacity for non-Saudis or legal identities before the law enforceability.

Regulations which prevent ownership of properties at defined sites or locations.

The termination of the royal bylaw number (44) dated to 29-11-1377H.

Notwithstanding the laws and the regulations for distinguished residence and the regulations for GCC nationals ownership, they should undertake with the special regulations which are limited to the natural Muslim person property in Mecca and Al Madinah Al Munawwarah. Also, the regular resident can own only one housing property outside those two cities. 

It is expected that the law contributes in attracting international investors to the real estate market and achieving long term economic revenues, while preserving the balance between development objectives and the requirements of regulatory authority.   

Amending article (5/17) of the executive bylaw for enforcement law at the Board of Grievance in its new form:

 “The court decides the travel prevention or the treatment prevention and the end of the prevention, and upon the term completion it may issue a new prevention order- according to the law and the bylaw.

Capital Market Authority approves new regulations for reinforcing the capacity of investment funds

Capital market authority approves a group of new regulations to the investment funds bylaw, the real estate investment funds bylaw, and the list of idioms used in the authority regulations and rules, that is in the efforts that aim at developing regulatory environment and reinforcing assets management sector development in the KSA. 

The authority asserts that those amendments which are approved by a decree from the Capital Market Authority Board, aim at reinforcing the management of investment funds, reinforcing market competition through adopting the best international practices and updating the frameworks for disclosure and governance, that ensures protecting the rights of the owners of units and reinforcing the levels of transparency.   

The amendments include:

Extending distributors extent: electronic distribution websites and electronic capital companies which are licenses by the Central Saudi Bank are permitted to distribute units of investment funds.

Developing the procedures of funds termination: regulating the withdrawal of fund directors in a condition of the authority approval, and ensuring the duties transfer to a substitute director in 60 days for protecting the interests of investors.

Legal Information:

staff quittance during contract enforceability

Obliging staff to sign a quittance during the contract enforceability is a null practice according to article (8) of the labor law that states:

“Each condition contradicts the articles of this law shall be null, and each quittance or reconciliation for the rights of the staff according this law during the employment contract enforceability shall be null, unless it is for the labor interests. 

Accordingly, each a quittance that is made with a labor while his contract is still enforceable, shall be null according to the regulations, unless it includes additional benefits for the labor than the ones provides by the law.

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:

Categorizing licenses of expatriate labor into three categories according to the skill

Minister of human resources and social development issues a decree for categorizing working licenses of expatriate labor into three main categories:

• professional category.

• Skillful category.

• Basic category.

The decree aims at raising the competence of job market, through attracting international competencies, experience transfer and reinforcing work environment creativity in the KSA.

Categorizing current expatriate labor started since 18^th June, 2025, and for the new labor from 1^st July, 2025, while skills and professional qualifications of the labor are verified according to the market demands and the best international practices.

Commencement of enforcing the decree for prohibiting work under sun rays

Ministry of human resources and social development commences the enforceability of the decree for prohibiting working under sun rays during summer until the middle of September, for protecting workers health and safety at uncovered areas. The decree exempts some groups that include the following:

Workers of oil and gas companies.

Emergency maintenance teams.

Agricultural and pasture workers.Sailors on small ships.

Non- Saudi workers who are assigned with tasks that don’t exceed two months.

The ministry obliges employers at uncovered areas to enforce 11 protective actions, including providing protective tools, appointing supervisors to follow up heat exhausting, securing cold drinking water, regulating work time and breaks and medical examination of workers.

The decree is applicable on the works which are exposed to direct sun rays without suitable protection tools. Sanctions against violations are from 1000 riyals to 25 thousand riyals according to the violation extent and repetition.

Right of free revision for 14 days for insured people

Council of Health Insurance points out that the regular rights of health insurance beneficiaries include free medical revision for 14 days from the date of examination or treatment, without paying any costs.

That right includes the required medical follow up to ensure the continuity and the quality of health care. Service providers should undertake with the unified health insurance charter. Beneficiaries should recognize their regulatory rights and they can file a complaint through the official channels of Health Insurance Council, in a case of discovering any violation.

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:

A New Categorization for Expatriate Labor Licenses According to the Skills

Minister of human resources and social development, engineer: Ahmed Alrajhy issues a specific decree for categorizing work licenses of expatriate labor into three main categories:

Higher skillful group

Skillful group

Basic group

That categorization is made through the ministry work for raising the competence of job market, attracting international labor, and reinforcing environment of creativity and productivity.

Enforceability:

Current labor: commencing from the 18^th of June, 2025.

New labor: commencing from the 1^st of July, 2025.

The decree also includes the mechanisms for verifying qualifications and professional skills, according to the best international standards and practices, to support the targets of the KSA Vision 2030.

Ministry of Commerce obliges establishments to update commercial register information yearly

Ministry of commerce invites all establishments where a year or more passes from the date of its registration to confirm their information electronically in 90 days from the due date, to avoid suspending the commercial register or halting its related services.

Annual updating is binding according to the commercial register system and its executive bylaw.

It shall be made through business electronic website.

The ministry asserts the importance of regular compliance to ensure continuity of the commercial activity and the effectiveness of the relationship with official authorities.

Regulatory comprehensive amendments to private medical establishments bylaws

Minister of health announces through “istitlaa website” the initiative for amending the executive bylaw for private medical establishments system, for upgrading the quality of services and improving the medical sector competence. The amendments include:

Obliging medical establishments in larger cities to appoint a specialized, full time medical supervisor.

Making a condition for having accurate qualifications of medical directors and administrators, while nationalizing supreme positions.

Updating the conditions for buildings and fittings according to the Saudi Code of Construction.

Applying an electronic medical information system to document all procedures and visits.

Regulating promotions and pricing offers, while prohibiting discounts unless with a prior approval.

Controlling ambulance and medical transport services through approved operational contracts.

Regulating the contracting relationship with medical practitioners and defining the number of the related authorities.

Matching licenses to the compliance with the standards of the Saudi Authority for Medical Specializations.

Regulating the work of visiting doctors and approving clinical privileges.

Strict compliance with anti-infection systems and the secure disposal of medical wastes.

The amendments aim at reinforcing the regulator environment of the medical sector and upgrading the level of transparency and compliance, to support the national transformation program for the medical sector.

 Legal Information for This Week

According to article (6) of the executive bylaw for the KSA labor law, no employer shall keep the passport or any personal document of any employee, unless with an expressive written approval of the employee, otherwise, a financial fine of 5,000 riyal per an employee shall be applied