Article 40 of the Saudi Chambers of Commerce Law
المادة 40 من نظام الغرف التجارية · الفصل الأول: التشكيل والمهمات
Article 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.
Official text (Arabic)
This article has not been amended since the law was issued.
اتحاد الغرف كيان غير ربحي، يهدف إلى رعاية المصالح المشتركة للغرف، وتمثيل مختلف الأنشطة التجارية على المستوى الوطني داخل المملكة وخارجها، والعمل على حمايتها وتطويرها، بالتنسيق مع الجهات المعنية، وهو المرجع الرئيس للغرف في المملكة، ويكون مقره الرئيس في مدينة الرياض.
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 40 explained in plain English
This article opens the provisions on the Federation of Saudi Chambers of Commerce, setting out its nature, objectives, status and seat:
- Nature: a non-profit entity, that is, one that does not aim to make a profit.
- Objectives: looking after the chambers' shared interests, representing the various commercial activities at the national level inside and outside the Kingdom, and working to protect and develop them in coordination with the relevant authorities.
- Status: it is the main reference for the chambers in the Kingdom.
- Seat: its main seat is in the city of Riyadh.
The difference between a chamber and the Federation is that a chamber serves its own subscribers, while the Federation brings the chambers together, represents them and looks after their shared interests at the national level. "Commercial activities", under Article 1, means the commercial business provided for in the relevant laws.
It is followed by Article 41, which gives the Federation legal personality and financial and administrative independence under the Ministry's supervision and bars it from engaging in commercial activities. It is preceded by Article 39 on evaluating chambers' performance, whose criteria the Federation prepares.
Practical example
Merchants in several regions face a shared problem affecting their sector across the Kingdom. Under the article, the Federation of Chambers, as the chambers' main reference, represents commercial activities at the national level and works to protect them in coordination with the relevant authorities.
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 40 of the Saudi Chambers of Commerce Law
What is the Federation of Saudi Chambers of Commerce?
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.
Where is the seat of the Federation of Chambers?
Its main seat is in the city of Riyadh.
Does the Federation of Chambers aim to make a profit?
No. The article states that it is a non-profit entity.
More articles on Federation of Chambers of Commerce
- Article 41
Article 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.
1- يتمتع اتحاد الغرف بالشخصية الاعتبارية والاستقلال المالي والإداري، ويعمل تحت إشراف الوزارة، ويمثله رئيس مجلس إدارته أمام القضاء والغير، وله تفويض من يراه في ه
- Article 42
Article 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.
يتولى اتحاد الغرف المهمات الآتية: 1- تمثيل الغرف التجارية في شتَّى الأنشطة التجارية على المستوى الوطني داخل المملكة وخارجها. 2- العناية بالمصالح المشتركة للغرف،
- Article 54
Article 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.
تتكون موارد اتحاد الغرف المالية مما يأتي: 1- نسبة مئوية من الاشتراكات التي تحصلها الغرف من المشتركين فيها، وتحدد اللائحة هذه النسبة. 2- عوائد استثمار أصول اتحاد
- Article 55
The 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.
يكون لاتحاد الغرف مراجع حسابات (أو أكثر) من بين مراجعي الحسابات المرخص لهم بالعمل في المملكة، تختاره الجمعية العمومية سنويًّا من بين ثلاثة على الأقل يرشحهم مجلس
- Article 56
Article 56 requires the Federation of Chambers' budget, financial statements and final accounts to be published as the Implementing Regulations set out.
تُنشر ميزانية اتحاد الغرف وقوائمه المالية وحسابه الختامي، وفقاً لما تحدده اللائحة.
- Article 60
The 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.
تسري الأحكام الواردة في النظام المتعلقة بالغرف -فيما لم يرد فيه حكم خاص باتحاد الغرف في النظام- على الاتحاد، وذلك فيما لا يتعارض مع طبيعة الاتحاد ومهماته.
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.