Legal framework
Legal Framework I Work Within
The laws below shape day-to-day work in Saudi construction and contracting law. This is general information about the legal landscape, not legal advice on any specific matter.
Civil Transactions Law (2023) — Royal Decree M/191
Saudi Arabia's first comprehensive codification of civil and contract law, in force since 2023. It set out clear rules for how contracts are interpreted and enforced — including force majeure, hardship, and limitation-of-liability clauses — replacing what had previously been left to case-by-case judicial interpretation.
Government Tenders and Procurement Law (GTPL)
Governs how Saudi government entities award and manage contracts, including construction and infrastructure projects. It sets the rules for tendering, contract drafting, variation orders, price adjustments, delay penalties, and contract termination — the framework behind most public-sector construction disputes.
Saudi Arbitration Law (2012) — Royal Decree M/34
Modernized Saudi Arabia's arbitration framework in line with the UNCITRAL Model Law, and underpins the growing use of arbitration — often through the Saudi Center for Commercial Arbitration (SCCA) — to resolve commercial and construction disputes outside the courts.
Commercial Courts Law
Sets out the procedures and limitation periods for commercial claims heard in Saudi Arabia's specialized commercial courts, distinct from the general limitation periods under the Civil Transactions Law.
This overview reflects the general legal landscape as of the site's last update and should not be relied on as legal advice for a specific matter. For guidance on an active contract, claim, or dispute, please get in touch directly.