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.
