Article 2 of the Saudi Chambers of Commerce Law
المادة 2 من نظام الغرف التجارية · الفصل الأول: التشكيل والمهمات
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
الغرفة كيان غير ربحي، يستهدف تنمية شتَّى الأنشطة التجارية على مستوى القطاعات التجارية، وتمثيلها لدى الوزارات والهيئات والمؤسسات العامة، والعمل على حمايتها وتطويرها، في نطاق اختصاص مكاني محدد.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 2 explained in plain English
This article explains the nature of the chamber of commerce and the purpose of its existence. The Chamber is not a company seeking profit but a non-profit entity working for the benefit of the business sector.
The article sets the Chamber's aims as follows:
- Developing commercial activities of all kinds across the commercial sectors.
- Representing these activities before ministries, authorities and public institutions; that is, the Chamber conveys the voice of the business sector to public bodies.
- Protecting and improving commercial activities.
The Chamber works within a specified geographic jurisdiction; that is, each chamber has a geographic area in which it carries out its role. Article 3 explains how the Chamber is established by decision of the Minister, that the decision specifies its seat and its geographic jurisdiction, that each administrative region has one chamber, and that the Minister may approve more than one chamber in a region under criteria issued by his decision.
The Ministry and commercial activities here have the meanings defined in Article 1: the Ministry is the Ministry of Commerce, and commercial activities are the commercial business provided for in the relevant laws. This article helps a business owner understand that the Chamber is a body that represents them and works to improve their activity, not one that competes with them in the market.
Practical example
Ahmed owns a food distribution business in Qassim, and he and other distributors face difficulties with government procedures. He can raise these difficulties with the chamber of commerce in his region, because one of its aims is to represent commercial activities before ministries, authorities and public institutions and to work to protect and improve them.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 2 of the Saudi Chambers of Commerce Law
Does the chamber of commerce aim to make a profit?
No. The article provides that the Chamber is a non-profit entity aiming to develop commercial activities.
What is the chamber of commerce's role toward government bodies?
The Chamber represents commercial activities before ministries, authorities and public institutions, and works to protect and improve them.
Does a chamber of commerce operate across the whole Kingdom?
Each chamber operates within a specified geographic jurisdiction.
More articles on Establishing and Supervising a Chamber of Commerce
- Article 1
The first article sets the meanings of the key terms in the Chambers of Commerce Law, such as the Chamber, the Ministry, the member, the subscriber, the Federation of Chambers and commercial activities.
يقصد بالكلمات والعبارات الآتية -أينما وردت في هذا النظام- المعاني المبينة أمام كل منها، ما لم يقتضِ السياق غير ذلك: النظام: نظام الغرف التجارية. اللائحة: اللائح
- Article 3
The 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.
1- تُنشأ الغرفة -بقرار من الوزير- ويكون في كل منطقة إدارية غرفة واحدة، ويُحدد القرار مقر الغرفة ونطاق اختصاصها المكاني. وللوزير -بناءً على معايير تصدر بقرار منه
- Article 4
The 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.
1- تتمتع الغرفة بالشخصية الاعتبارية والاستقلال المالي والإداري، وتعمل تحت إشراف الوزارة، ويمثلها رئيس مجلس إدارتها أمام القضاء والغير، وله تفويض من يراه في هذا
- Article 61
Article 61 subjects the staff of the chambers of commerce and the Federation of Chambers to the Labor Law and the Social Insurance Law.
يخضع منسوبو الغرف واتحاد الغرف لأحكام نظام العمل ونظام التأمينات الاجتماعية.
- Article 62
In 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.
يجوز للوزير -في حالات يراها- أن يعين لدى الغرفة أو اتحاد الغرف مندوبًا تكون مهمته متابعة تنفيذ الأنظمة والقرارات ويكون له حق حضور اجتماعات الجمعية العمومية، واج
- Article 63
The Minister of Commerce or his or her delegate supervises the application of the provisions of the Chambers of Commerce Law.
يتولى الوزير أو من يفوضه الإشراف على تطبيق أحكام النظام.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.