Saudi Commerce Minister Majid Al-Qasabi emphasized on Friday that the Cabinet’s approval of Saudi Arabia’s accession to the UN Convention on Contracts for the International Sale of Goods reflects the government’s commitment to enhancing the growth of the commercial sector.
He also said that the move helps keep pace with modern legislative reforms and regulatory frameworks that support the integration of the Saudi economy with regional and global economies.
The minister further added that the Convention will enable the adoption of regulatory and legislative frameworks for cross-border trade, facilitating the establishment of a unified system governing the conclusion of such contracts.
This will enhance the growth of the Saudi economy, especially considering that 95 countries, representing around two-thirds of the global economy, have already joined the Convention.
The Convention provides a unified and flexible legal framework for the international sale of goods across borders. It also aims to establish an international regulatory framework that is neutral and independent in addressing disputes related to international sales of goods.
Additionally, it encompasses a modern set of legal rules that consider various economic and social aspects.
The Convention contributes to removing obstacles in the field of international trade and enhancing its development. Additionally, it supports efforts to diversify the economy and promote cross-border transactions, particularly for small and medium-sized enterprises.
Joining the Convention also contributes to supporting alternative dispute resolution mechanisms, as well as facilitating the choice of applicable law in case of disputes and other transactions.
Membership also helps to avoid ambiguity regarding the applicable law, as the Convention eliminates barriers and enhances transparency in international trade procedures.
It improves legal predictability, facilitates more efficient dispute resolution, and contributes to the development of domestic contract systems within the country.
Saudi Arabia’s National Competitiveness Center (NCC) is actively studying Riyadh’s accession to several international agreements in collaboration with the United Nations Commission on International Trade Law (UNCITRAL). This collaboration is in line with the Cabinet’s approval of a memorandum of cooperation regarding financial contribution to the UNCITRAL Trust Fund.
