Article 3 of the Saudi Chambers of Commerce Law
المادة 3 من نظام الغرف التجارية · الفصل الأول: التشكيل والمهمات
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 بناءً على اقتراح من اتحاد الغرف- الموافقة على إنشاء أكثر من غرفة في المنطقة الإدارية الواحدة.
2- للغرفة أن تُنشئ -بناءً على قرار من مجلس إدارتها- فروعًا لها في المحافظات التابعة إداريًّا لإمارة المنطقة، أو مكاتب فرعية في المراكز الإدارية التي تقع ضمن نطاق اختصاصها المكاني.
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 3 explained in plain English
This article answers the question: who establishes the chamber of commerce, and how many chambers are there in each region?
First: establishing the Chamber
- The Chamber is established by decision of the Minister, who is the Minister of Commerce as defined in Article 1.
- The rule is that there is one chamber in each administrative region.
- The establishing decision specifies the Chamber's seat and its geographic jurisdiction.
- As an exception, the Minister may approve establishing more than one chamber in the same administrative region, provided that this is based on criteria issued by his decision, and these criteria are based on a proposal from the Federation of Chambers.
Second: branches and offices
- The Chamber may set up branches in the governorates administratively attached to the region's emirate.
- It may set up sub-offices in the administrative centers within its geographic jurisdiction.
- Branches and offices are established on the basis of a decision of the Chamber's board of directors.
This article connects to Article 2, which provides that the Chamber works within a specified geographic jurisdiction, and to Article 4, which gives the Chamber legal personality and financial and administrative independence under the supervision of the Ministry. A business owner therefore knows that the chamber they deal with is determined by the geographic scope specified in its establishing decision.
Practical example
Khaled runs a maintenance workshop in one of the governorates of the Riyadh region and finds it difficult to visit the Chamber's seat in the city. The article allows the Chamber's board of directors to decide to set up a branch in the governorate or a sub-office in an administrative center within its scope, bringing its services closer to subscribers in those areas.
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 3 of the Saudi Chambers of Commerce Law
Who has the power to establish a chamber of commerce?
The Chamber is established by decision of the Minister of Commerce, and the decision specifies its seat and its geographic jurisdiction.
May there be more than one chamber of commerce in a single region?
The rule is one chamber per administrative region. The Minister may approve more than one chamber under criteria issued by his decision on the proposal of the Federation of Chambers.
Who decides to open a chamber branch in a governorate?
The Chamber's board of directors decides, in the governorates administratively attached to the region's emirate.
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 2
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.
الغرفة كيان غير ربحي، يستهدف تنمية شتَّى الأنشطة التجارية على مستوى القطاعات التجارية، وتمثيلها لدى الوزارات والهيئات والمؤسسات العامة، والعمل على حمايتها وتطوي
- 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.