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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)
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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.

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Stocks Drop as Fresh Trade News Awaited, Oil Down on Iran Hopes

Oil prices have dropped after an adviser to Iranian supreme leader Ayatollah Ali Khamenei said Tehran could be open to meeting some demands over its nuclear program. KHAMENEI.IR/AFP
Oil prices have dropped after an adviser to Iranian supreme leader Ayatollah Ali Khamenei said Tehran could be open to meeting some demands over its nuclear program. KHAMENEI.IR/AFP
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Stocks Drop as Fresh Trade News Awaited, Oil Down on Iran Hopes

Oil prices have dropped after an adviser to Iranian supreme leader Ayatollah Ali Khamenei said Tehran could be open to meeting some demands over its nuclear program. KHAMENEI.IR/AFP
Oil prices have dropped after an adviser to Iranian supreme leader Ayatollah Ali Khamenei said Tehran could be open to meeting some demands over its nuclear program. KHAMENEI.IR/AFP

Equities stuttered Thursday as investors await fresh developments in trade talks, with US partners looking to reach deals to avoid Donald Trump's tariff blitz, while oil extended losses on hopes for an Iran nuclear deal.

With excitement from the China-US detente running out of legs, the search is on for fresh catalysts to drive a rally that has pushed markets back above the levels seen before US President Trump's April 2 "Liberation Day" bombshell, AFP said.

News that Beijing was suspending some non-tariff countermeasures on US entities for 90 days following the superpowers' weekend truce did little to inject much more enthusiasm.

With the tariffs crisis calmed for now, dealers can turn their attention to hard economic data, hoping for an idea about the initial impact of Washington's trade policies.

After figures Tuesday showing US inflation came in a little below forecasts in April, eyes are on wholesale prices and retail sales due later Thursday, as well as earnings from retail giant Walmart.

However, analysts pointed out that the real impact would not be seen until May's figures are released and warned that there were still plenty of bumps in the road ahead.

"The trade truce may hold for now, but the tariffs announced -- many still around 30 percent -- are not disappearing," said Charu Chanana, chief investment strategist at Saxo.

"These are 'sticky' policies that can reshape supply chains, corporate margins, and even inflation. In fact, the market is now preparing for a second shock: weaker economic and earnings data in the third quarter as tariffs bite."

She added that "the muted market reaction the day after the truce suggests investors may be digesting the idea that 'the best news may already be out'".

While Wall Street enjoyed a broadly positive day, with the S&P and Nasdaq up but the Dow down, Asia largely reversed.

Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Manila were all down.

Oil prices sank around two percent on signs that Iran could agree to certain US demands to reach a nuclear deal.

An adviser to supreme leader Ali Khamenei said Wednesday that Tehran could accept far-reaching curbs on its atomic program in exchange for sanctions relief, according to NBC News.

Ali Shamkhani said in an interview that his country could agree to never develop nuclear weapons, give up stockpiles of highly enriched uranium and allow inspectors to nuclear sites -- among other steps -- if economic sanctions were lifted, NBC said.

The commodity had already dropped Wednesday on bets that demand would increase as tensions between China and the United States ease and the tariffs are wound back.