Article 1 of the Saudi Commercial Court Law
المادة 1 من النظام التجاري نظام المحكمة التجارية · الفصل الأول: التاجر ، شروطه ، صفاته ، أنواعه
The article defines the merchant as a person who engages in commercial transactions and makes them his profession.
Official text (Arabic)
This article has not been amended since the law was issued.
التاجر هو من اشتغل بالمعاملات التجارية واتخذها مهنة له.
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 1 explained in plain English
This article sets the basic definition of the merchant in the Commercial Court Law, a definition on which many provisions of the law are built, because merchant status determines who the commercial duties and provisions apply to.
The definition rests on two elements that must both be present:
- Engaging in commercial transactions: that is, carrying out acts that count as commercial; Article 2 listed examples of them, such as buying goods to sell them as they are or after manufacturing, supply and transport contracting, and what relates to bills of exchange, money exchange and brokerage, and contracts between merchants, brokers and agents.
- Making these transactions a profession: that is, a habitual practice that the person takes up as his trade, not merely an occasional act.
This means that someone who carries out a single or scattered commercial operation without making trade his profession does not fit this definition by its text, because the article requires professional practice alongside the commercial act.
If you are wondering whether your activity counts as commercial and whether the provisions on merchants apply to you, it is useful to consult a lawyer who specializes in commercial cases, because the answer depends on the nature of your activity and how regular it is.
Practical example
Ahmed, an employee in Riyadh, once bought a used car and sold it at a profit, while Khaled opens a shop where he regularly buys goods to sell. Under this article, Khaled is the one who fits the description of a merchant because he has made commercial transactions his profession, whereas Ahmed's occasional operation does not make him a professional in trade.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 1 of the Saudi Commercial Court Law
Who is a merchant under the Commercial Court Law?
A person who engages in commercial transactions and makes them his profession; both practicing commercial acts and doing so as a profession are required.
Does carrying out one commercial deal make me a merchant?
The article requires that the person make commercial transactions his profession, so an occasional act alone does not meet this condition by the text.
What commercial transactions are meant?
Article 2 lists examples of them, including buying goods to sell them, supply and transport contracting, money exchange and brokerage, and bills of exchange.
More articles on The Merchant and Commercial Acts
- Article 4
The article states that anyone who is of full legal capacity or has reached the age of majority has the right to practice the profession of trade of all kinds.
كل من كان رشيدا أو بلغ سن الرشد فله الحق أن يتعاطى مهنة التجارة بأنواعها.
- Article 5
The article requires every merchant to deal with integrity and honor, without fraud, deceit or swindling, or he deserves the penalty under the penalties in the law.
يجب على كل تاجر أن يسلك في كل أعماله التجارية بدين وشرف، فلا يرتكب غشا ولا تدليسا ولا احتيالا ولا غبنا ولا غررا ولا نكثا ولا شيئا مما يخالف الدين والشرف بوجه من
- Article 147
This article punishes any merchant who violates the requirement of Article 5 with imprisonment from ten days to three months or a fine of ten to fifty pounds, according to his offense and circumstances.
كل تاجر يخالف مقتضى المادة (5) يجازى بالحبس من عشرة أيام إلى ثلاثة أشهر أو بغرامة مالية من عشرة جنيهات إلى خمسين جنيها على حسب مقتضى جريمته وحاله.
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.