Article 149 of the Saudi Commercial Court Law
المادة 149 من النظام التجاري نظام المحكمة التجارية · الفصل الحادي عشر: في العقوبات
This article treats tricks that present a permitted contract intended to reach usury as usury, so the person keeps his capital and is punished with imprisonment from three months to one year together with public exposure.
Official text (Arabic)
This article has not been amended since the law was issued.
من ارتكب شيئا من أنواع الحيل بأن أظهر عقدا مباحا يريد به محرما؛ مخادعة وتوسلا إلى الربا كما لو باع بضاعة بثمن مؤجل، ثم اشتراها بنفسه أو وكيله أو بواسطة أخرى أقل من قيمة البيع نقدا، أو أقرض آخر شيئا وباعه أموالا بزيادة فاحشة في القيمة، يعد ذلك ربا، وله رأس ماله وعدا عن ذلك يجازى بالحبس من ثلاثة أشهر إلى سنة مع تشهيرهما.
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 149 explained in plain English
This article deals with usurious tricks, meaning presenting a permitted contract when the aim is usury.
The act: committing any kind of trick, by presenting a permitted contract while intending a prohibited thing, by deception and as a means to usury.
The text's examples:
- Selling at a deferred price and then buying back for less in cash: selling goods at a deferred price, then buying them himself, through his agent or through another intermediary, for less than the sale price in cash.
- A loan combined with a sale at an excessive increase: lending someone something, and selling him property at an excessive increase in value.
The ruling:
- This is considered usury.
- He keeps his capital, meaning he recovers what he originally paid without the increase.
- Besides that, he is punished with imprisonment from three months to one year.
- With public exposure of both.
The first example shows the trick: in effect, the first buyer receives cash now and pays more later, which is in reality a loan with an increase, even though it appears in the form of two sales.
Note that the text refers to the “exposure of both” in the dual form without specifying who. Before it, Article 148 punishes breach of trust by carriers and custodians.
If you are a party to a transaction you suspect is a usurious trick, consult a lawyer who specializes in commercial and banking cases.
Practical example
A merchant in Riyadh sold a car to a person for SAR 100,000 deferred for a year, then immediately bought it back from him through his agent for SAR 80,000 in cash. Under this article that is considered usury, the merchant keeps his capital, and he is punished with imprisonment from three months to one year with public exposure.
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 149 of the Saudi Commercial Court Law
What is the ruling on selling an item on credit and buying it back for less in cash?
If it is a trick in which a permitted contract is presented while usury is intended, it is considered usury under this article.
What is the penalty for usurious tricks?
He keeps his capital, and besides that he is punished with imprisonment from three months to one year with public exposure of both.
More articles on Commercial Penalties
- 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 41
The article makes every money changer responsible for his work, books and employees, regulates the exchange of coins at the Finance request, and assigns the application of the money changer provisions to municipal councils where there is no Commercial Court.
كل صراف مسئول عن أعماله وانتظام دفاتره وأعمال الأشخاص المستخدمين عنده مما تترتب فيها عقوبة بمقتضى فصل العقوبات : أ- يجب على الطرفين أن يقوموا بكل أمر حكومي إذا
- Article 63
The article prohibits putting dates in transfers ahead of their true date, and treats that as forgery if it occurs.
تقديم التواريخ في التحاويل عن تاريخها الحقيقي ممنوع وإن حصل يعد ذلك تزويرا .
- Article 138
The article punishes a merchant who reneges on a valid sale after giving the release order, even in collusion with the warehouse keeper, by requiring delivery and imprisonment of one to three months.
كل تاجر باع شيئا من أمواله وأموال موكله التي هي تحت تصرفه بيعا صحيحا ثم أعطى للمشتري سند الفسح ( الستمى ) باستلامه من المخزن ثم نكث عن بيعه وعارض في تسليم المبي
- Article 139
The article punishes a merchant who tricks a discerning minor, exploiting his need, into giving a document, by imprisonment of three months to a year or a fine of fifty to one hundred pounds.
كل من أساء الاستعمال من التجار في احتياجات صبي مميز بأن احتال عليه لأخذ وثيقة منه على أي صورة كانت سواء تضمنت استقراض دراهم واستعارة أشياء أو إعطاء أوراق أو إبر
- Article 140
The article punishes anyone who changes words or inserts phrases in a signed or sealed bond or a commercial book through embezzlement and forgery by imprisonment of three months to a year or a fine.
من أساء الاستعمال في سند أو ورقة فيها ختم أو إمضاء أو في دفتر تجاري بتبديل كلمات أو إدخال عبارات تقضى تعهد أو إبراء على وجه الاختلاس والتزوير يعاقب بالحبس من ثل
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.