Article 2 of the Saudi General Warehouses Law

This is the definitions article. It sets the meaning of four terms wherever they appear in the Law, unless the context requires otherwise:

1. General warehouse: the place the warehouse keeper designates for depositing and keeping goods for a fixed period until they are delivered, in return for a known fee.
2. Deposit in warehouses: a contract under which the warehouse keeper undertakes to receive goods to store and keep them for the account of the depositor, or for the account of whoever acquires ownership or possession of them under endorsable (or commercially negotiable) documents issued by the general warehouse.
3. Storage receipt: the deposit contract issued by the general warehouse keeper, stating the depositor's name and address, the type, quantity and value of the goods, and all necessary details, such as the type of insurance, the name of the company insuring the goods, the beneficiary of the insurance, and whether the fees and taxes due on the goods have been paid or not.
4. Pledge document: a certificate issued by the general warehouse keeper, containing clear details of the deposited goods, their value, the rights encumbering them, and other details recorded in the storage receipt.

The most distinctive feature of this Law is that the deposited goods are represented by endorsable documents, so ownership or possession can be transferred through these documents without moving the goods themselves from the warehouse. These definitions serve the purpose stated in Article 1, which is to regulate the work of the general warehouse and define the warehouse's rights and obligations. Article 3 also sets out the bodies that issue licenses to establish a general warehouse and to carry on its activity.