A new law allows individuals aged 15 and above to engage in commercial activities under specific conditions, consolidating three commercial laws into a single framework to promote investment and protect small and medium-sized enterprises.

Riyadh | BETH

October 28, 2026

Saudi Arabia has opened new opportunities for young entrepreneurs by approving the Commercial Transactions Law, which allows individuals aged 15 and above to engage in commercial activities with authorization from a parent, guardian, or court, as part of legislative reforms aimed at developing the business environment and promoting competition and investment.

The law, approved by the Council of Ministers chaired by Crown Prince and Prime Minister Mohammed bin Salman, comprises 271 articles regulating commercial activities, contracts, traders' obligations, accounting records, and commercial papers.

The new legislation replaces three previous laws and unifies provisions governing commercial sales, supply contracts, commercial agency, and brokerage, enhancing transaction transparency, protecting rights, and reducing disputes.

It also supports fair competition, enables those harmed by damaging commercial practices to seek the cessation of harm and compensation, and expands the use of electronic methods for maintaining accounting records.

Minister of Commerce Dr. Majid Al-Kassabi explained that the law complements the Civil Transactions Law to stimulate the commercial and investment environment.

The law will take effect 180 days after its publication in the Official Gazette.

BETH Analysis

The significance of the law lies not only in lowering the minimum age for engaging in commerce, but also in enabling young people to turn their ideas into economic ventures at an early age, within a legal framework that protects their rights and regulates their obligations.

Consolidating commercial laws also enhances regulatory clarity for investors, supports small and medium-sized enterprises, and creates broader opportunities for business growth.

The most significant shift is that entrepreneurship is no longer necessarily tied to reaching the age of majority. It can begin earlier, supported by knowledge, training, and regulatory safeguards.