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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:

Ministry of Environment and Agriculture Issues the New Executive Regulations

for Environmental Violations  

Ministry of Environment, Water and Agriculture issues the new executive regulations for the environmental violations according to the ministerial decree number 915101619), for reinforcing the environmental governance and to ensure undertaking with the environmental sustainability standards in the KSA.

The regulations include the mechanism for violations control, including documenting them by the inspectors in cooperation with the security authority when required and defining the sanctions which include financial fines up to 100,000 Saudi riyals, while the harder violations are raised to the concerned committee, in addition to the possibility of terminating the license in a case of repeating the violations.

Also, the regulations oblige the violators with the environmental requalification and paying the damages. They define the mechanisms for seizure items disposal. The regulations grant the violators the right of appealing the decrees of sanction taken against them according to the legal judgments.

Ministry of Municipality, Rural and Housing Affairs Approves the Technical Guidelines for Processing Delayed and Obstructed Sale and Lease Projects

Ministry of Municipality, Rural and Housing Affairs approves the new technical guidelines for processing the delayed and obstructed property projects according to “The Roadmap for sale and lease projects”.

The guidelines define the delayed project as an incomplete project according to the schedule and the performance indicators, and it is categorized as obstructed when there are technical or financial reasons that affect the completion progress.

The guidelines include mechanisms for treating obstruction, as the developers should take the corrective actions, and replace the identities or the individuals who cause the obstruction. Also, the guidelines allow replacing the main developer by another one in a case of inability to complete the project because of bankruptcy or financial inefficiency.

Legal Information

Regulations for Amending Prices of Contracts at the Governmental Tenders and Procurements System 

According to article number sixty eight of the governmental tenders and procurements new system, amendment in the prices of contracts and framework agreements shall be made only in exceptional cases, to ensure justice between the contracted parties, and to prevent unjustified amendments. Those cases include:

• Changing prices of basic materials or services: in a case of change in the basic prices that influence the contract articles, according to the regulations.

• Changing customs or taxes: at amending the charges or the taxes that require amending the contract prices.

• Non-expected insolvency: in a case of non-expected difficulties through the performance when it is impossible to expect them at signing the contract.

This article aims at balancing the contracting undertakings and protecting all parties from sudden changes which may affect the cost of completion, while undertaking with defined conditions and procedures that ensure stability and transparency of contracts.

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:

Zakat, Taxes and Customs Authority Updates the Regulations for Customs

Zakat, Taxes and Customs Authority approves the amendment of some regulations of customs, upon its authorities granted by the unified customs law of the GCC. The new amendments include the following:

Documents: The documents defined by the unified guidelines for customs should be considered, while in a case of failure to provide any of the required documents, the customs clearance shall be made opposite cash or bank guaranties, in a condition that the period for providing the documents shall not exceed 90 days from the date of customs statement registration.

Cargo information: transporters of goods shall file the cargo information one hour before the goods reach the customs zone. That includes information about the means of transport, the source and the receiver.

Inspection Procedures: supplied goods should be inspected for each sender, and they should be prepared in a way that facilitates inspection.

Dues payment: all financial dues related to customs information, and fines (if found) should be paid before the completion of customs clearance.

Importing goods: Regulations for importing goods and the information related to passenger customs statement, was amended, as the defined pathways should applied and when the value of materials exceed 3000 Saudi riyals or equal, they should be recorded.

Temporary procedures: New rules were established for temporary entrance of goods, including the necessity of applying the applicable international procedures.

Those amendments aim at reinforcing the transparency and the effectiveness of custom procedures that contributes in improving the work environment and ensures undertaking with the applicable regulations. Those amendments will be applied from the date of publishing at the official Gazette.

Ministry of Commerce Invites Companies to Amend the Articles of Association Before the Completion of the Defined Term for that System

Ministry of commerce announces that 80 days period is left for companies to amend the articles of association according to the regulations of the new firms’ law, as the allocated period ends on 18^th January, 2025.

The ministry states that the amendment is made upon the royal bylaw number (132-M) issued on 1-12-1443H, that obliges all present companies at the enforceability of the firms system on 19^th January, 2023, to amend their positions according to its regulations.

The ministry invites the firms to amend their articles of association through the Business Platform of the Saudi Economical Business Center (business.sa), where the companies can surf the service of “amending articles of association”, and fill in the form, then file an electronic application, while being benefited from the current free publishing.

The electronic application should be filed by the authorized partner or manager, while there should be a decree from the unordinary general assembly of joint stock companies or a decree of shareholders at simple stock companies. Applications should be filed for only main records of companies.

Five Basic Differences between the New and the Previous Commercial
Register Systems to reinforce Practicing Business 

Ministry of commerce launches a new commercial register system that aims at facilitating the procedures for practicing business and ensures accuracy of information and updating them regularly. The system has a number of critical differences than the previous system that reflects the ministry undertaking with improving the business environment in the KSA. The following are the most important differences between the two systems:

Termination of Sub-records: The new system permits the presence of one record that covers all activities, instead of using sub-records as was applicable in the preceding system.

Unifying the record at the KSA level: The new system no longer requires defining the city of the commercial record, as it makes a unified commercial record enough for all the kingdom locations, compared with the preceding system which requires issuing records according to the administrative locations.

Termination of the record validation date: The new system does without defining the commercial record validation date, but it makes it is enough to ensure data yearly, compared with the preceding system which requires a defined validation date.

 Substitute Procedures for Sanctions: The new system provides substitute options, including warning, correcting the violation, in addition to the traditional sanctions, while financial fine was the sole option in the preceding system.

Commercial record deletion: The article for commercial record deletion is amended to be one year from the date of suspension, instead of 30 days according to the preceding system.

Those updates indicate to the efforts of the ministry of commerce to reinforce the commercial procedures effectiveness and creating a more regulated and flexible work environment in the KSA.

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:

Removing Information of Expatriates from the Records:

Ministry of Human Resources and Social Development explained the methods where establishment can remove the information of expatriates from their records in a case of labor stops working, as the employer shall apply for terminating the labor relationship because of the expatriate employee stopping of work upon the completion of the regulating actions including notifying the employee in writing through the approved notification for stopping work in the contract, and the passing of the defined term for firing because of absence, then the employer applies for removing the information of the employee, and the state of expatriate is updated in the system to be “absent from work”, and so the expatriate employee information becomes unrecorded in the establishment, then the employee shall transfer his service to another employer or finally exits, that is in 60 days.

Conditions of the Ministry of Municipalities and Housing for Administrative Offices inside Commercial Building

Ministry of Municipalities and Housing issued its conditions for offices inside commercial buildings with the aim of developing and improving the business environment to achieve individual and community ambitions and objectives. Those conditions aim at supporting investors in that field, and raising the level of conformity to face appearance deformity. The conditions for the offices are as follows:

Procedures of Licensing:

Procedures of issuing, terminating, renewing, amending, and halting licenses shall be according to the municipality licensing procedures system and its executive regulations. Also, the civil defense approval should be attained before issuing the license.

Legal Requirements:

Presenting a valid commercial register that including the activities which are intended to be licensed.

Having an approval from the Public Authority for Small and Medium Size Establishments, related to the business Incubators.

Licensing the closed offices in business incubators, according to the established regulations.

Having the landlord approval

Building Code Requirements:

Property constructional requirements achievement

Property electric requirements achievement

Property mechanical requirements achievement

Executive Regulations for Railway System

Transportation Public Authority Board of Directors approves the executive regulations for the railway system, that consists of (91) regulating articles that aim at regulating all activities and services related to the railway transportation sector, license, procedures and refining the violations and their sanctions, which are as follows:

Activities and services include the following:

Internal transportation in and between cities

Defining the rights and the undertakings of the train users, including the rights of disabled or limited mobility people, according to safety and security standards and conditions.

Licenses and activities that require licensing:

The regulations define a clear mechanism for protecting railway lines and their scope. Also they define the activities that require having a license from the authority. Those activities include:

Infra-structure management

Managing and operating the locations of handling the containers related to the network.

Operating the passengers or goods transport services.

Operating train stations

Safety Management System:

The regulations include obliging the operator to develop a safety management system and verifying its effectiveness, through:

Developing health and safety policy

Developing emergency and works continuation plan in coordination with the concerned authorities.

Developing procedures for ensuring the availability of all required safety requirements in buildings, stores and trains.

Schedule of violations and sanctions:

The regulations include (25) violations which are defined in the schedule of violations and sanctions, including:

Intruding the boundaries of the railway lines: the financial fine opposite that violation is from 10,000 Saudi riyals to 200,000 Saudi riyals, according to the violation category and its effect on the service or its users

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:

Transferring the authorities of issuing licenses for (the practice of individual management consultations) from the ministry of commerce to the ministry of human resources and social development

The cabinet decreed transferring the authorities for issuing licenses to “practice the individual management consultations” from the ministry of commerce to the ministry of human resources and social development, as follows:

• To be included in the free business documents
• The ministry of commerce remains practicing the authority of issuing the above stated licenses for (six) months from the date of this decree issuance.
• Ministry of human resources and social development studies relieving the conditions for issuing licenses of individual management consultations to achieve the general objectives, considering the recommendations of the strategic committee members at the letter of the strategic committee in the economic affairs and development council.

Extending the period for connecting the acceptance of claims by the labor courts with firstly filing them to the labor office for amicable settlement of the dispute

The Saudi Cabinet decreed to extend the enforceability of paragraph (a) of article (First) of the royal bylaw number (14-M) dated to 22-2-1440H, for one year from 20-2-1446H. The stated paragraph states: (For labor claims which are filed to the labor court, shout be filed firstly to the labor office for taking the required actions to the amicable settlement of the dispute). The main points of the decree are as follow:

• Paragraph (a) of article (first) of the royal bylaw, refers to a prior condition to filing a labor claim to the labor court, as the claimant (usually the employee or the employer) should firstly file the claim to the labor office.
• The labor office is the concerned authority for trying the amicable settlement of the labor dispute between the parties (the employer and the employee)
• procedures of amicable settlement:
• The claim is filed to the labor office as a first step, for providing the opportunity to solve the dispute amicably between the parties, without the necessity of taking judiciary actions.
• In a case that the amicable settlement failure, the claimant shall file a labor claim to the labor court.
• Objective of Extending the Period:
• Extending for an additional year means continuity of those procedures applicability for an additional year, to be evaluated or amended in the future.
• The objective of that procedure is to relive the stress on labor courts and to try solving disputes quickly and effectively without the requirement of seeking the court that saves time and resources of both the parties and the courts.
• Benefits of the decree:
• The decree aims at reinforcing the opportunities of amicable settlement of labor disputes through labor offices, that may result in decreasing the number of cases filed to labor courts.
• The decree contributes in regulating the relationship between the employee and the employer in a way that ensures the rights of the parties and decreasing the long-term and costly disputes in the courts.
• Improving the legal system competence through solving some cases quickly beyond the courts, that enable courts to concentrate on complex cases that require legal judgments.

Public Transport Authority Issues the Regulations for the committee of Railway violations system

Public transport authority issued the regulations of the railway system and its executes rules that aim at regulating the committee work and defining its duties according to the rules of the system. Those regulations aim at reinforcing the transparency and governance in the sector, as the committee is the concerned authority with the violations of the licensees and the beneficiaries from the railway services. The regulations include:

• Committee structure: The committee is formed of members who are appointed for three renewable years. Members are fired or replaced in defined cases, such as absence from the meetings or the conflict of interests.
• Procedures of meetings: Meetings are held in the majority of members and the committee has the authority to hold its meetings electronically when required, while it keeps all meetings confidential. All decrees are issued in the majority of attendance, while the chairman shall have the casting vote in a case of equal votes.
• Authorities of the committee: the committee is concerned with the violations related to railways system, and imposing the sanctions defined by that system, including financial sanctions up to 10 million Saudi riyals, while the sanction shall increase in a case of repetition. It is also concerned with considering the complaints filed by the related individuals or authorities.
• Duties of the committee chairman: The committee chairman is responsible for managing meetings and communicating with the concerned authorities. He files reports to the council about any obstacles or challenges that face the committee.
• Committee secretary: The committee includes a specialized management unit, that manages all technical and administrative matters related to the meetings, including writing the minutes down to the follow up of responses and ensuring the completion of the required documents for deliberating complaints and violations.
• Reporting and Execution Mechanisms: the committee decrees are reported through approved means that include the e-mail, the national address, SMS, while the decrees of the committee may be appealed at the complaints department in 60 days. The committee decrees shall be enforceable from the date of reporting.
• Annual reports: the committee undertakes to file an annual report to the council that includes the results of its works, and it may publish regular reports about its activities.
• Sanctions: the sanctions imposed by the committee ranged from imposing financial fines up to 10 million Saudi riyals, and they shall be doubled to 20 million riyals in a case of repetition. The sanctions shall be defined according to the nature of the violation and the extent of its danger, considering the previous violations of the violators.

Legal Information

Article number twenty three of the regulations and the procedures that govern the amicable settlement of labor disputes states that:

In a case that the claim includes any violation to the labor system rules or its executive regulations and the enforceability decrees or in a case it is pointed out to the reconciler that it is found at any of the settlement parties, the amicable settlement management shall notify the labor environment control and development agency to make the required inspection and investigation, to ensure undertaking with the labor system rules and its executive regulations, according to the following:

• in a case of violating the labor rules and the executive regulations:
• In a case that the claim filed to the amicable settlement department includes any violation to the labor rules or its executive regulations, that violation will be treated amicably.
• That also includes the cases where it is pointed out that there is a violation by any of the parties during the settlement process, even if it is not stated in the claim.
• Notifying the labor environment control and development agency:
• In a case that there is a violation, the amicable settlement department shall notify the labor environment control and development, which is the concerned authority for controlling the undertaking with the labor system and developing work environment.
• The objective of that notification is to make the required inspection and investigation, to ensure that the work environment undertakes with the rules and the laws.

Objective of that article:

In conclusion, the article aims at achieving two main objectives:

• Ensuring the parties of the labor dispute undertaking with the labor system: even in a case of amicable settlement, the violations which may affect the rights of employees or employers shall not be ignored.
• Reinforcing control and undertaking: engaging the control agency in a case of discovering violations reinforces controlling the enforceability of the system rules and ensures a healthy and sustainable work environment.

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 Saudi Cabinet Approves the Regulating Rules of Temporary employment Visas for Pilgrimage and Umra Services 

The Saudi Cabinet approves the regulations of temporary employment visas for pilgrimage and Umra services, at its meeting held on 28-03-1446H, corresponding to 11-10-2024)

The new regulations are enforceable upon the completion of 180 days. They aim at providing a more attractive job market, considering the establishments that work at the season of pilgrimage and Umra. The critical amendments include, enlisting Umra services at the temporary employment visas, and changing the title of “seasonal employment” visa, to be “the temporary employment for pilgrimage and Umra services”.

Also, the grace period is extended to be from the 15^th of Shaaban to the end of Mohram that contributes in regulating and managing manpower through that critical period

The Saudi Cabinet Approves the Real Estate Transactions Tax System

The Saudi Cabinet approves the draft of the real estate transactions tax system at its meeting held on 8-1-1446H, upon revising the statement issued from the Royal Dewan and a group of related regulations and drafts,

The new system aims at regulating the real estate transactions tax, as it includes a number of rules and procedures.

The critical points of the system include:

The period for correction: The stakeholders, who made undocumented real estate transactions before the enforceability date of that tax on 14-2-1442 H, are granted a grace time for a year to document their transactions.

Exceptions: the real estate transactions resulted from lease contracts for the purpose of ownership, which are made before the enforceability of the tax and each transaction governed by the VAT before its documentation, are exempted.

Method of revision: Zakat, Taxes and Customs Authority will revise the method of assessing the tax after three years from the system enforceability, including the option of assessing the tax according to categories of using the property and its location.

The Saudi Cabinet Approves Transferring the Supervision of Precious Minerals and Stones to the Ministry of Industry 

The Saudi Cabinet approves amending the regulations for precious minerals and stones, as all authorities related to supervision; control and licensing are transferred from the ministry of commerce to the ministry of industry and mineral fortune. That was made at the meeting held on 25-9-1445H.

The most important amendments:

Supervision and control: Ministry of industry becomes responsible for supervising the industry of precious minerals and stones, while ministry of commerce is responsible for trading those minerals.

License: No practice of precious minerals industry shall be made unless with a license from the ministry of industry, while the license expenses shall be defined according to the regulations.

Controlling procedures: Articles related to violations control are amended, so that the concerned officials can report the violations and the investigation procedures.

Exceptions: The system includes exceptions (discharging) including real estate sanctions which were made before the system enforceability.

Regulations enforceability: Ministry of commerce and ministry of industry shall issue the required regulations for the enforceability of the new system regulations in a year from its publishing date.

Transferring plan: Both ministries shall work together for developing a plan to transfer the authorizations that includes a time frame and treating any difficulties which may emerge.

Legal Information

 “Account Auditing” : Standards of Fairness and Professionalism in firms

Independence: auditor should be independent, and his job shouldn’t interfere with the firm’s interests.

Preserving the interests: He shouldn’t buy shares in the firm which he audits

Not performing technical works: He shouldn’t perform any technical or consultation works for the firm, unless according to the regulations

Right of exposure: He has the right of revising all accounting documents and records, while in a case of any difficulties; the issue shall be raised to shareholders.

Reporting: He shall prepare an annual report of the company financial position and any defaults.

Confidentiality: He shouldn’t disclose any confidential information which he attains through his work.

Responsibility: He is responsible for any mistakes at his report and he will be liable for any resulted damages.

According to the stated liabilities, the auditor contributes in reinforcing transparency and the authenticity of financial statements.

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 customs service charges on exports and reducing the customs on imports:

The decree for terminating the customs service charges on imports, and reducing the customs on imports is enforceable according to a new method for calculating customs.

That method is applied through collecting an amount of 0.15% of the imported goods opposite the service of processing customs statement for goods, in the minimum of 15 riyals, to the maximum limit of 500 riyals. Also, the new charges include an amount of 15 riyals on the individual shipping through electronic stores when the value doesn’t exceed 1000 riyals.

Zakat, Taxes and customs Authority announced that the termination of the customs service charges on exports includes a number of services, including processing of customs information, loading services in gates, ray-inspection, and exchanging information.

That amendment is made according to the authority efforts to relieve the financial burdens on exporters, especially small and medium size establishments, to reinforce the competence and the competitive quality of Saudi goods. Also ,it contributes in reducing the costs of importing and reinforcing the importers capacity to calculate the charges of customs service in advance, while ensuring not to increase the costs, and unifying the method of calculation at road, marine and air gates.  That decree represents a critical step towards facilitating commerce and supporting national economy,

Amending the conditions and the regulations for licensing the activity of car leasing in the KSA

Public Transport Authority issued a decree for amending article number twenty seven of the conditions and the regulations for licensing the activity for car leasing and the activity of leasing mediator through electronic applications and websites. The new amendment enables each stakeholder to file an objection to the authority in 60 days from the date of violation notification. Also, he can appeal the decree of the authority at the administrative court in 60 days from the date of its publication at the official journal.

That decree is made upon the authorities given to the authority president, upon revising the related regulations. Also, that amendment is enforceable and supersedes all previous decrees contradicting it.

It is worth noting that the public transport authority sent the original decree to the representative of the transport authority for reporting it to the stakeholders to enforce its requirements.

Issuing New Regulations for Allocating and Retrieving State Properties 

State public properties authority issued decree number (1-11-2024) dated to 02-01-1446, for applying new regulations for regulating the allocation and the retrieval of state properties. Those regulations aim at achieving more competence in using the stated owned properties and ensuring optimal use of them.

The regulations include accurate definitions of related items and phrases, such as “state properties”, “allocating authorities” and “allocation”. They also define the conditions for allocating any property, as the governmental authorities should file a plan for assessing its needs for three years. It also includes accurate information about the property category and its purpose, in addition to information about the number of the authority stakeholders.

The regulations make a condition of assessing the property by an approved assessor according to the approved standards of the authority. Also they define the cases of retrieving the property from the governmental authority, for example handing the property over or the completion of its allocation purpose.

In addition, an electronic website shall be made for facilitating the process of filing applications and following up the procedures of allocation and retrieval, that reinforces the work competence and contributing in keeping the properties information confidential.

The authority will prepare the required forms for the enforceability of those regulations, while the new regulations shall be published in the official journal and will be enforceable from the date of their publishing.

Those actions are made according to the state efforts to reinforce the transparency and fairness in managing the state properties, and to ensure applying the needs of the governmental authorities effectively and sustainably.

Saudi Authority for Auditors and Accountants Approves the Regulations for Zakat and Taxes Calculation Services

The board of directors for the Saudi Authority for Auditors and Accountants, under the presidency of Dr. Maged Bin Abduulah Alqasaby, announces approving the regulations for zakat and taxes accounting, according to the authority efforts to reinforce the standards for transparency and professionalism in the sector.

Those regulations depend on the authority organization issued by the cabinet decree, which aims at regulating those services to ensure practitioners with the applicable professional standards.

The new regulations will be published in the official journal, and it will be enforceable upon the completion of six months from the date of publishing, so the practicing officials will have enough time to be adapted to the new requirements.

The regulations include a number of procedures and requirements, where the licensee is obliged to notify the authority with any changes in the contact information in a month of the change occurrence, also annual information related to the office or the company will be reported.

For punctuality, the regulations define the sanctions for violating any of the stated conditions, including warning or halting the employment for periods that exceed a year.

That step is according to the authority efforts to improve the quality of the services provided in the sector of accounting and auditing, that contributes in reinforcing confidence of practitioners and their customers.

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:

Procedures and Period for Accepting the Resignation in the Saudi Labor System

1-Accepting the resignation: the resignation is accepted in a case the employer doesn’t respond to it in 30 days. The employer may postpone the resignation acceptance for 60 days, for the work interests, while he provides a justified explanation to the employee before the 30 days period completion.

2-Contract termination: the employment contract is terminated whether by accepting the resignation by the employer or by the passing of 30 days without responding, or by the completion of the postponed period.

3-Withdrawing the resignation: the employee may withdraw his resignation in 7 days from filing it, unless it is actually accepted by the employer.

4-Undertakings at the resignation period: the employment contract shall remain enforceable, and the undertakings of the parties shall remain enforceable through the resignation period.

5-Rights of the employee: the employee deserves all his dues according to the labor system at his contract termination by the resignation.

The Cabinet Decree Number (68) Dated to 17-1-1446H, about Approving the Regulations of Control and Anti-Corruption Authority

The regulations of Control and Antic-Corruption Authority define the public authorities to include ministries, governmental centers, public authorities and public legal independent identities, and any other identity.

The regulations define the following crimes as corruption crimes- for the purposes of applying the regulations:

Bribe crimes

Stealing public money crimes

Misuse of the authority crimes

Any other crimes which is mentioned as a corruption crime according to the regulations

The regulations for the control and anti-corruption authority point out that the authority is related to the king and has a legal identity and financial and administrative independence. Its head office is located Riyadh, and it may establish branches or offices in the KSA when required. The authority performs its work with neutrality and without any influence of any authority, and no one shall interfere in its work.

The system includes the duties of the authority for administrative control on public authorities, to keep fairness and transparency, anti-corruption. Those duties include:

 The required controls to discover administrative violations and corruption crimes, and taking the required actions, according to the related regulating texts

Receiving complaints and reports related to the administrative violations, corruption crimes, and verifying them, and taking the required actions.

Performing the investigations of administrative and financial violations, corruption crimes, and taking the required actions according to the related regulating texts

Performing criminal investigations and control of corruption crimes, and taking the required actions according to the related texts

Follow up retrieving money and revenues resulted from committing corruption crimes with the concerned authorities, and taking the required actions in that regard.

Taking the precautions and preservations for the ones where the evidence of committing the corruption crimes is found, according to the related regulating texts.

According to the system of the control and anti-corruption authority, it may make the financial settlement with the ones who apply for it and committed corruption crimes, who are natural or legal identities, upon the regulations that include sorting the targets of that settlement and the related procedures which are established by the authority and issued by a royal decree.

Summary of Sanctions for Violations according to the Feed Saudi System

Food and Medicine Public Authority announces the draft of violations and sanctions sorting schedule, according to the feed system and its executive rules. The schedule includes in a case of issuing test results without making analysis, the sanction per each test will be up to a million riyals, while in a case of issuing incorrect test results, the sanction will be up to 500,000 riyal per test, and in a case that the tests don’t match the technical regulations requirements, the sanction will be up to 100,000 riyal per test and in a case of performing tests which aren’t stated in licenses, the sanction will be up to 150,000 riyals per test. The draft states that in a case of selling feed where a prohibited addition is used according to the regulations, the sanction shall be 200,000 per product, in a case of falsifying the validity dates of feed, the sanction shall be up to 50,000 riyals per product, in a case of no packaging card is found, while feeds contradict the feed card are sold, the sanction shall be up to 50,000 riyals. In a case of selling feeds or any derivatives which include prohibited, illegal or toxic materials, the sanction shall be one million riyals per product, in a case of selling impure, harmful, or feeds which aren’t valid for animal consumption, the sanction will be up to 500,000 riyals per product, in a case of selling feeds which are prohibited from selling, the sanction will be up to 250,000 riyals per product, and in a case of using water of ice which isn’t valid for animal consumption in manufacturing, transporting or storing feeds, the sanction will be up to 300,000 riyals per product.

Sanction of Tax Evasion in the KSA

1-Financial fines: up to 50% of the difference between the due tax and the paid tax at manipulation of information. The additional fines start from 5% and reaches 25% of the unpaid tax value.

2-Criminal sanctions: up to imprisonment for five years in a case of affirming willful evasion.

3-Assets attachment: the assets of tax payers may be attached to ensure collecting the due of the state.

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:

State Properties Authority Approves Granting Properties to Non-Profitable Associations and Organizations

The board of the Public Authority of State Properties decreed by decree number (2024-46-Q), dated to 10-02-1446H, corresponding to 14-8-2024, to approve the regulations for allocating state properties to non-profitable sector. To attain that grant by an identity, the following conditions should be met:

• The non-profitable identity shouldn’t have been granted lands, and state property is allocated to it for that purpose. The allocation shall be made according to the requirement assessed by the authority.
• The total area allocated for that identity for that purpose shouldn’t exceed (2.500 square meters). The non-profitable identity shall use a portion of the property, in a condition that it doesn’t exceed 30% of the area allocated for achieving financial sustainability of the identity, according to the allocation decree.
• The deed of property is registered in the name of the state properties authority for the non-profitable sector development center, while it shall define the name of the beneficiary non-profitable identity.

The present regulations aim at achieving effective economic and social objective, which is non-profitable and serves a number of fields, including the medical, educational, social, industrial, cultural, tourist, or technical fields, etc.

Legal Information

Trademark System

In a case of a commercial shop property transfer without its name, the predecessor shall be responsible for the liabilities that precede the shop transfer, unless there is an agreement to add the collective responsibility of successors for those liabilities.

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 Cabinet Approves Investment System

The Official Journal (Um Al Qura) published the updated investment system after approving it from the concerned authority. That system was developed as an integrated system that replaces the foreign investment system issued by the Royal bylaw number (M/1) on 5-1-1421H, to agree with the kingdom vision (2030). It will be enforceable after (180) days from its publishing date. According to the decree, the system will not affect any acquired rights for the investors before its enforcement, including any licenses or incentives given to them, until the completion of the terms defined for those rights. The details of the system are as follows:

The system aims at developing and reinforcing the competitive investment environment in the KSA, contributing in economic development and creating employment opportunities through providing an investment climate that attracts investments, according to the requirements of the related systems, including:

• Facilitating investment stability, ownership of its assets, it termination or dissolution.
• Ensuring and reinforcing the rights of investors
• Ensuring equality of treating both national or foreign investors
• Ensuring transparent, effective and fair procedures for the investor and his investment
• Establishing the principle of competitive neutrality, fairness and equality of opportunities at investment treatments.

 The most important differences between the foreign investment system and the updated investment system, include:

• The definition of the investor in the updated system includes both the national and the foreign investors, compared with the foreign investment system which regulates only the rules for foreign investment.
• The concept of capital becomes more accurate and comprehensive through defining the following points:
• Shares in firms
• Contracting rights
• Fixed and transferable assets
• Intellectual property rights
• The rights granted upon the system of licenses or permits, etc.

The definition of capital doesn’t include the capital of loans, bonds, financial instruments, general and special debt instruments, that means the investments at those tools are out of the updated investment system scope. Also, word (foreign) was deleted, so that the capital includes both national and foreign capital.

• The system permits investors to use alternative dispute resolution, such as arbitration, mediation and settlement.
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Most Important Amendments in the Labor System

The cabinet approves critical amendments to a number of labor system articles, for creating more attractive employment environment for the citizens, that contributes in achieving the sustainable development according to the Saudi Vision 2030, and in accordance with the job market strategy and the labor agreements made by the KSA to preserve the rights of all contracted parties, that reinforces the stability of private sector establishments and creates a healthy and secure environment. Those amendments include:

• The following is added to the duties of the employer: the employer shall not do any act that weakens or damages the equality of opportunities or treatment in the job or profession
• Adding a paid leave to the employee in a case of the brother or the sister death.
• Adding the rights of the trainee and the employer and their duties at the training contract.
• Extending the maternity leave for the employed woman to twelve weeks
• The possibility of agreeing on a paid leave instead of the dues for the overtime.
• Defining the mechanism for the contract term and its renewal for the non-Saudi labor, when the contract is void of the term.
• The probation period should be defined in the employment contract, while the total term shall not exceed one hundred and eighty days in all cases.
• Adding the definition of the (resignation and assignment) and adding an article that defines the procedures of the resignation
• Adding a case for employment contract termination, related to the procedures of bankruptcy, that states (issuing a decree or a final judgment from the concerned court for terminating the employee contract at any of the bankruptcy procedures, according to the bankruptcy system)
• Amending the period of termination notification for the undefined term contract to be (30) days in a case that the termination is made by the employee and (60) days in a case of the termination by the employer.

Amendments to the New Anti- Corruption System

According to the anti-corruption and reinforcing transparency efforts made by the KSA, the cabinet approves the new system of Anti-Corruption authority that aims at empowering the authority to practice its authorities with more competence. That reflects the KSA undertaking to develop anti-corruption legislations, and the complete independence “fairness”, which reinforces its role in following up and investigating the individual who commit financial and administrative crimes, while ensuring the retrieval of stolen money and returning it to the state treasury. The new system includes the following critical points:

• In a case that a convicted with a corruption crime escapes outside the kingdom or in a case of his death, the authority- in coordination with the concerned authorities- will work for attaining the investigation evidence and results, if found, for taking the required actions to file a claim at the concerned court for claiming the returning the money that represents the crime subject, withholding it, or returning its value- according to the condition- and returning any revenues resulted from that money. Upon issuing the judgment and acquiring the final form attached with the executive form, the authority shall coordinate with the ministry of justice to take the required actions for the judgment enforcement whether internally or externally according to the execution system, the related international treaties and the reciprocity principle.
• Granting the judiciary capacity and the entire independence to the unit members at the anti-corruption authority. They are governed only by the Islamic law and the related regulations, while no one shall interfere in their work, and they shall not be assigned with duties other than their allocated duties.
• Anti-Corruption Authority shall develop and file those regulations to the king for considering their approval.

According to:

• Regulations for financial disclosure of some categories of state employees.
• Regulations for job oath of some categories of the state employees.
• Regulations for granting rewards to the ones who report corruption cases.

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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:

The Cabinet Approved the Systems of Products Safety, Specifications and Quality

Those systems aim at developing a framework for the responsibilities of each authority or person at the supply chains for the market products. The system also aims at reinforcing customer safety through preventing the risks related to the products which are sold at the Kingdom’s markets and explaining the methods of treating that risk and the risks related to those products. The rules of the system are applicable on all products, except the products which are related to the Public Authority for Food and Medicine. The system provides effective tools for consumer safety, and it defines the authority which is responsible for any unsecure product in the markets, in addition to activating the control role of the concerned authority with markets, preventing the risks related to the products which are marketed or sold in the markets of the kingdom, also it raises public awareness for the methods of dealing with the risks related to the products.

Approving the Regulations for Providing Real Estate Assessment to the Financial Authorities

The executive director of the Saudi Authority for Approved Residents, Fisal Bin Bander Almandel issued a decree for the regulations of real estate assessment for financial authorities, which shall become enforceable from the date of their publishing in the formal journal for providing the services. The regulations make conditions for registering real estate assessment, that is the approved resident and the establishment should meet all rules and regulations of the profession, and the resident or any professional partner at the assessment establishment should have the authority scholarship certificate at the real estate assessment section. The conditions include the recorded experience hours at the establishment account in the authority electronic systems should not be less than 5 thousand hours of experience at the assessment section, and the members of the authority who join the assessment establishment shouldn’t be less than five members, while the remaining period for the license validity shouldn’t be less than 120 days. The decree includes defining the charges for the real estate services, as the regulation states that upon a decree from the authority executive director- upon a recommendation from the concerned authority- the minimum charges for real estate assessment services for financial authorities shall be defined through Qaym. When the charges are defined, it is should be ensured that the assessment establishment is able to meet all regulating and professional undertakings at the assessment reports issued by Qaym for assessing the real estate assets according to their categories, and according to the international standards which are approved by the authority.

Legal Information

Commercial Record System

No action shall be taken on the commercial name in separation from the action on the commercial shop, while the actions on the shop shall not include its commercial name unless that is agreed in writing. In that case the one who receives the name shall add what indicates to the property transfer. When the successor agree to use the original commercial name without any addition, he shall be responsible for the undertakings of the assignor when they are made upon that name, in a case of the successor’s failure to meet them.