Saudi Arabia Joins UN CISG Agreement

Saudi ports are witnessing a significant growth in the movement of goods. (Asharq Al-Awsat)
Saudi ports are witnessing a significant growth in the movement of goods. (Asharq Al-Awsat)
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Saudi Arabia Joins UN CISG Agreement

Saudi ports are witnessing a significant growth in the movement of goods. (Asharq Al-Awsat)
Saudi ports are witnessing a significant growth in the movement of goods. (Asharq Al-Awsat)

Saudi Arabia has officially acceded to the United Nations Convention on Contracts for the International Sale of Goods (CISG), becoming the 96th state party to the convention.

The UN CISG is a multilateral uniform international sales treaty that facilitates international trade by removing legal barriers among state parties and providing consistent rules governing global goods contracts.

The CISG establishes a comprehensive code of legal rules governing the formation of contracts for the international sale of goods, the obligations of the buyer and seller, and remedies for breach of contract and other aspects of the contract.

It also provides an equitable and modern uniform framework for the contract of sale, which is the backbone of international trade in all countries, irrespective of their legal tradition or level of economic development. Its adoption and use may contribute significantly to introducing certainty in commercial exchanges and decreasing transaction costs.

In June, the Saudi Cabinet approved the Kingdom’s accession to the agreement, with the aim of strengthening the commercial sector and keeping pace with legislative reforms and modern regulatory frameworks that support the integration of the Saudi economy with regional and global economies.

Logistics expert Salem Al-Dosari told Asharq Al-Awsat that the Kingdom’s accession highlighted the country’s endeavor to strengthen the legal environment and promote trade and investment.

He added that Riyadh was seeking to enhance the growth of its commercial sector and keep pace with legislative reforms and modern regulatory frameworks that support the integration of the Saudi economy with regional and global economies.

The agreement aims to unify international commercial laws pertaining to contracts for the sale of goods between member states, and to achieve a balance between the interests of buyers and sellers in international commercial deals, Al-Dosari remarked.

In addition to facilitating trade, the CISG will help simplify dispute resolution processes, cultivating a conducive environment for all parties involved in international business dealings.



Gold Holds Ground as Jobs Data offsets Safe-haven Demand

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
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Gold Holds Ground as Jobs Data offsets Safe-haven Demand

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)

Gold prices held steady on Wednesday as stronger US jobs data countered safe-haven demand driven by simmering trade tensions between the US and China.

Spot gold was steady at $3,349.19 an ounce, as of 1145 GMT. US gold futures were unchanged at $3,373.10.

"US labor data gave markets a bit of relief yesterday, causing a small dip in gold prices. However, tensions between the US and China are still keeping risks high and gold prices supported," said Zain Vawda, market analyst at MarketPulse by OANDA.

Job openings in the US rose in April, though layoffs surged to their highest level in nine months, economic data showed, hinting at softening labor market conditions, Reuters reported.

Donald Trump said on Wednesday that Chinese President Xi Jinping is tough and "extremely hard to make a deal with," days after the US President accused China of violating an agreement to roll back tariffs and trade restrictions.

Washington doubled its tariffs on steel and aluminium imports on Wednesday, the same day the Trump administration expects trading partners to make "best offers" to avoid other punishing import levies from taking effect in early July.

The focus will be on Friday's US non-farm payrolls data for more cues on the Federal Reserve's policy path. Federal Reserve's policy path. Fed officials have reiterated their cautious policy stance, citing risks from trade tensions and economic uncertainty.

"If the data is stronger than expected, interest rate cut expectations are likely to wane, which would weigh on the gold price," said Commerzbank analyst Carsten Fritsch.

"We see gold trading in a range between $3,300 and $3,400 per troy ounce in the short term."

Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment.

Elsewhere, spot silver fell 0.5% to $34.32 an ounce, platinum rose 1.1% to $1,085.50 and palladium lost 0.5% to $1,005.11.