In force
Saudi Chambers of Commerce Law
نظام الغرف التجارية
The Chambers of Commerce Law was approved by Royal Decree No. M/37 dated 22/4/1442 AH. This page presents the official Arabic text of each article with plain-English explanations.
- Articles
- 66
- In force
- 66
- Amended
- 0
- Issued
- 22/4/1442 AH
Issued by: مرسوم ملكي رقم (م/37) وتاريخ 1442/4/22هـ · قرار مجلس الوزراء رقم (239) وتاريخ 1442/4/16هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Chambers of Commerce Law by topic
Establishing and Supervising a Chamber of Commerce10 articlesFunctions of the Chamber of Commerce2 articlesChamber General Assembly4 articlesChamber Board Elections6 articlesConditions for Chamber Board Membership5 articlesChamber Board Powers and Meetings7 articlesBoard Liability and Dissolution3 articlesChamber Secretary General2 articlesChamber of Commerce Subscription4 articlesChamber of Commerce Finances7 articlesEvaluating Chamber Performance1 articleFederation of Chambers of Commerce7 articlesFederation Board of Directors11 articlesNational and Sectoral Committees5 articles
Articles of the Saudi Chambers of Commerce Law
الباب الأول: الغرفةArticles 2–39
- Article 2The second article provides that the chamber of commerce is a non-profit entity aiming to develop, represent, protect and improve commercial activities within a specified geographic scope.
- Article 3The third article regulates establishing a chamber of commerce by decision of the Minister, with one chamber per administrative region, and the Chamber's right to set up branches and sub-offices.
- Article 4The fourth article gives the Chamber legal personality and financial and administrative independence under the Ministry's supervision, allows it to own property, and bars it from engaging in commercial activities.
- Article 5The fifth article lists the Chamber's tasks in developing commercial activities within its geographic scope, including studies, issuing certificates, attestation and settling disputes by conciliation or arbitration.
- Article 6The sixth article allows the chamber of commerce to communicate with other chambers, ministries, authorities and public institutions to request the data and information relating to carrying out its tasks.
- Article 7The seventh article sets the organs that make up the chamber of commerce: the general assembly, the board of directors and the general secretariat.
- Article 8The eighth article provides that the chamber of commerce's general assembly consists of all its subscribers.
- Article 9The ninth article sets the powers of the Chamber's general assembly, including electing two thirds of the board members and approving the annual report, budget, final account and internal regulations.
- Article 10The tenth article regulates the Chamber's general assembly meetings: an annual meeting within 90 days of the financial year's end, calling it at the request of the board or 5% of subscribers, and meeting electronically.
- Article 11The eleventh article sets the board's term at four years and its size at no more than 18 members, allows extending the board when elections are late, and lets the Minister appoint a third.
- Article 12The twelfth article refers board election procedures to the Implementing Regulations, bars electing more than one member from a single establishment, removes any financial pay for a member, and limits candidacy to two consecutive terms.
- Article 13The thirteenth article provides that candidates win by acclamation if they do not exceed the elected seats, and lets the Minister fill any shortfall from qualified subscribers.
- Article 14The fourteenth article regulates electing the chair of the Chamber's board and two deputies at the board's first meeting by secret ballot and absolute majority, with a re-vote and a draw on a tie.
- Article 15The fifteenth article provides that the first deputy takes the Chamber president's place with full powers when he is absent or loses membership, then the second deputy when both are absent or lose membership.
- Article 16The sixteenth article sets six conditions that an appointed member or a candidate for the Chamber's board must meet, including experience, a valid commercial register, good conduct and not holding membership of two chambers.
- Article 17The seventeenth article sets the cases of losing membership of the Chamber's board: death, resignation, repeated absence, incapacity and losing membership conditions, with an 8-year bar on standing in one case.
- Article 18The eighteenth article regulates filling a vacated seat on the Chamber's board by appointing the highest-polling candidate among those who did not win, or by the Minister appointing a replacement.
- Article 19Article 19 lists the powers of the chamber's board of directors, including approving policies, reviewing regulations, acting on the chamber's behalf, appointing the Secretary General, and forming committees.
- Article 20Article 20 gives the chamber's president responsibility for following up on strategic matters and for calling and chairing General Assembly and board meetings, and leaves his or her other powers to the Implementing Regulations.
- Article 21Article 21 requires the chamber's board to meet at least once every 60 days, and governs emergency meetings called by the president or requested by one third of the members.
- Article 22Article 22 sets the quorum for a chamber board meeting and allows it to be postponed twice if the quorum is not reached, with a Ministry representative attending the third meeting.
- Article 23Article 23 governs the confidentiality of chamber board discussions, decisions by majority of those present, open voting, inviting non-members, and electronic meetings and circulation.
- Article 24Article 24 requires the chamber's president, deputies, members and Secretary General to notify the board of any interest in the chamber's contracts, and bars them from attending the deliberations and voting on them.
- Article 25Article 25 makes the chamber's president and members answerable to the General Assembly, and the Secretary General to the board, for misuse of the chamber's funds and violations of the Law, with a 5-year limit for claims.
- Article 26Article 26 allows the Minister, by a reasoned decision, to dissolve a chamber's board in two cases, with early elections within 90 days and a temporary board in the meantime.
- Article 27Article 27 governs the appointment of the chamber's full-time Secretary General, attendance at board meetings without a vote, closed meetings, and the limits on the length and renewal of the contract.
- Article 28Article 28 lists the Secretary General's duties, including executive supervision, implementing the board's decisions, preparing the budget and reports, and hiring staff.
- Article 29Article 29 requires every establishment in the commercial register to join the competent chamber, with no multiple subscriptions for multiple branches, and allows those not required to register to join without voting rights.
- Article 30Article 30 refers to the Implementing Regulations for the categories of chamber subscribers and the fee for each, and provides that the fee falls due 3 years after registration in the commercial register.
- Article 31Article 31 limits the chamber's services to subscribers, requires services to be stopped for anyone who has not paid the annual subscription, and requires subscribers under three years to pay for the services they request.
- Article 32A subscription to the chamber is canceled when the subscriber's commercial register entry is struck off, or when the license expires or is canceled for an activity that does not require registration, with no refund for the remaining period.
- Article 33Article 33 lists the chamber's financial resources: subscriptions, fees for certificates and attestation, investment returns, accepted donations and gifts, and fees for publications, training, conciliation, arbitration and any other service.
- Article 34Article 34 makes the chamber of commerce's fiscal year the same as the state's fiscal year.
- Article 35When the estimated budget is delayed, the chamber works on the previous budget's estimates until the General Assembly approves the new one within 90 days with the Minister's approval; otherwise the Ministry may take whatever action it sees fit.
- Article 36Article 36 bars spending without an approved allocation or beyond it, and transferring or misusing allocations, without the board's approval; violations are void and those responsible must repay the funds within 30 days.
- Article 37Article 37 requires the chamber to have a licensed auditor chosen each year by its General Assembly from at least three nominated by the board, for no more than four consecutive years, who submits an annual report with a copy to the Ministry.
- Article 38Article 38 requires the chamber's budget, financial statements and final accounts to be published as the Implementing Regulations set out.
- Article 39Article 39 governs evaluation of chambers' performance: criteria prepared by the Federation and approved by the Ministry, annual self-evaluation, a subscriber survey, and a one-year grace period on a low evaluation followed by reconstitution of the board.
الباب الثاني: اتحاد الغرفArticles 40–56
- Article 40Article 40 defines the Federation of Chambers as a non-profit entity that looks after the chambers' shared interests and represents commercial activities nationally inside and outside the Kingdom; it is the chambers' main reference, based in Riyadh.
- Article 41Article 41 gives the Federation of Chambers legal personality and financial and administrative independence under the Ministry's supervision, represented by its board chairman, with the right to own property but not to engage in commercial activities.
- Article 42Article 42 lists 22 duties of the Federation of Chambers, including representing the chambers nationally and internationally, studies, exhibitions and delegations, national committees, joint business councils, and resolving disputes between chambers and between their board members.
- Article 43Article 43 names the three administrative bodies of the Federation of Chambers: the General Assembly, the board of directors, and the General Secretariat.
- Article 44The Federation's General Assembly is made up of the chambers, each represented by members of its board other than its president, according to its number of subscribers under the Regulations and with a minimum of one member.
- Article 45Article 45 sets the powers of the Federation's General Assembly: following the board, discussing matters, approving the report, final accounts, budget and internal regulations, and approving the auditor.
- Article 46The Federation's General Assembly meets yearly within 90 days of the end of the fiscal year, and may be called at the request of the board or 20% of its members, with meetings and voting allowed electronically.
- Article 47Article 47 provides that the Federation of Chambers' board of directors is made up of the presidents of the chambers.
- Article 48The Federation's board elects its president and two deputies by secret ballot and absolute majority, the Minister appoints them for three years, and the president may not run for the next term unless he or she served less than a year.
- Article 49Article 49 sets the powers of the Federation of Chambers' board: policies and decisions, acting on the Federation's behalf, resolving disputes between chambers and their board members, following performance, referring the budget to the Assembly, and forming committees.
- Article 50The Federation's president is specifically responsible for following strategic matters and for calling, chairing and running General Assembly and board meetings, and the Regulations set his or her other powers.
- Article 51The Federation's board meets at least every 90 days; the article sets quorums of more than half, then one third, then whoever attends, decisions by majority of those present, circulation by unanimity, and electronic means.
- Article 52The Federation's board appoints a qualified Secretary General who attends its meetings, other than closed ones, without a vote; the board may hold closed meetings to discuss his or her performance.
- Article 53Article 53 lists the Federation Secretary General's powers: supervising the Secretariat, implementing board decisions, preparing regulations, reports and the budget by set deadlines, and hiring staff other than his or her deputies.
- Article 54Article 54 lists the Federation's resources: a percentage of chambers' subscriptions and of their attestation fees set by the Regulations, investment returns, accepted donations, and fees for publications, training and activities.
- Article 55The Federation has a licensed auditor chosen each year by the General Assembly from three nominated by the board, for no more than four consecutive years, who submits an annual report with a copy to the Ministry.
- Article 56Article 56 requires the Federation of Chambers' budget, financial statements and final accounts to be published as the Implementing Regulations set out.
الباب الثالث: اللجانArticles 57–66
- Article 57The Federation's board forms national-level committees, from chamber subscribers or others, to serve and develop commercial activities; they are linked to it and called the national committees.
- Article 58A chamber's board forms committees for commercial activities under the General Authority for Statistics classification, sets their powers, and elects members from subscribers or specialists; they are called sectoral committees.
- Article 59A regulation issued by the Minister, on the proposal of the Federation's board, governs the criteria for forming national and sectoral committees, how they are set up, how members are chosen, and their rules of work.
- Article 60The Law's provisions on chambers apply to the Federation of Chambers where it has no specific provision of its own, and so far as they do not conflict with the Federation's nature and duties.
- Article 61Article 61 subjects the staff of the chambers of commerce and the Federation of Chambers to the Labor Law and the Social Insurance Law.
- Article 62In cases he sees fit, the Minister may appoint a representative to a chamber or the Federation to follow the implementation of laws; the representative attends meetings and sees minutes and accounts without a vote.
- Article 63The Minister of Commerce or his or her delegate supervises the application of the provisions of the Chambers of Commerce Law.
- Article 64The Minister of Commerce issues the Law's Implementing Regulations in coordination with the Ministry of Investment, the Ministry of Industry and Mineral Resources and the Federation's board, within 150 days of the Law's publication.
- Article 65The Chambers of Commerce Law replaces the Chambers of Commerce and Industry Law issued by Royal Decree No. M/6 dated 30/4/1400 AH, and repeals any provisions that conflict with it.
- Article 66The Chambers of Commerce Law takes effect 180 days after the date of its publication in the Official Gazette.