The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:
Tightening and Digitalizing Residence laws
New residence and labor law is enforceable from the early 2026, upon approving the smart digital system that aims at facilitating procedures and raising competence in addition to decreasing violations.
The law depends on the electronic completion of procedures including applying for and renewing residences, in addition to exchanging information between the ministry of human resources and passports department that facilitates following up residence and labor violations at the real time.
Sanctions and violations:
Imprisonment, fine, and deportation for the ones who violate residence and labor regulations.
Sanctions on the establishments that employ violating staff, including fines or prohibiting hiring.
Forming a committee to follow up violations and enforcing the sanctions according to the law.
The present amendment is made for controlling job market, protecting the rights of employees and reinforcing sustainable compliance, according to the Saudi Vision 2030 for improving work environment.
Real estate authority announces the enforcement of non-Saudis property law
The KSA enforces the law for non-Saudis property ownership from the beginning of 2026 upon approving the legislative updates of the real estate system that aims at developing the sector and attracting foreign investments,
That law permits non-Saudis to own properties and to acquire material rights inside the geographical zone defined by the real estate public authority, that ensures regulating the market and preserving its balance. That law makes a condition that the non-Saudi ownership or material right shall not be enforceable unless it is registered at the real estate register according to the approved procedures and providing the required information. For the financial element, the law permits imposing charges which shall not exceed 5% of the real estate transactions value when they are made by non-Saudis, notwithstanding any other applicable taxes or charges.
The law imposes the following sanctions in a case of violating its rules:
Warning
A fine up to 5% of the material right value which is the violation subject, to the maximum of 10 million riyals.
Also, a committee or more shall be formed to include legal professionals to deliberate the violations and impose the sanctions according to the extent and the consequences of the violation.
The law is an extension of the binding real estate legislations that aim at increasing the property offer and attracting investors and development companies to the Saudi market,
A Draft for Amending the Bankruptcy Law According to the Best International Practices
Bankruptcy committee suggests an amendment to the bankruptcy law that allows the debtor, especially the small debtors to schedule the debts according to mechanisms that agree with the best international practices, with the aim of achieving balance between the interests of debtors and creditors.
The amendment includes a prior agreement between the debtor and the creditor on the plan for rescheduling debts before commencing any of the bankruptcy procedures, where the plan includes clear financial information, and confirms that the revenue for the rejecting creditors isn’t less than the expected revenue in a case of dissolution.
The amendment obliges the debtor to have an approved bankruptcy trustee for preparing a report that assesses the plan fairness and achieving the interests of most creditors, then applying to the court with an application for authenticating the plan upon notifying the creditors.
The amendment allows the creditors to appeal in front of the court in a case of damages or violations to the standards of justice. In a case of the court authentication of the plan, it shall reject the registration of any application after the commencement of the bankruptcy procedures.
In a case of rejecting the authentication, any stakeholder shall apply for commencing the bankruptcy procedures according to the law.
Approving the amendment of the author rights
The Saudi cabinet approves amending author rights law in 2026, as follows:
Extending the copyrighted works:
They include all art, scientific, artistic, digital, audio or video works and software.
Enlisted online digital and creative works at the legal coverage.
Reinforcing moral rights of the author:
The right of attributing the work to its holder and stating its name or a nickname.
Preventing amendment, dissertation or deletion of the work without the author consent.
The right of work withdrawal or amendment upon the author discretion.
Those rights become permanent and irrevocable.
Reinforcing financial rights:
Exclusive right of using the work commercially (sale, license, distribution, performance, distribution)
Regulating financial rights transfer through written contracts that define the term and the field.
The license includes translation, commercial quotation and digital issuance.
Regulating related rights:
Protecting rights of artists and performers.
Protecting the producers of audio and video recordings and broadcasting rights.
Updating exceptions:
Works are permitted to use in limited non-commercial or educations uses.
Treating the challenges related to artificial intelligence and modern technologies.
Tightening sanctions on violators:
Fines up to 250,000 riyals
Confiscation of violating editions and closing the violating establishments.
Imprisonment for up to 6 months, while the sanction shall be doubled in a case of repetition.
Reinforcing legal actions and administrative settlement before litigation.
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