Sale of Goods Contracts in Saudi Arabia: Accession to the CISG, the Civil Transactions Act and Conflict Rules

This paper examines the implications of Saudi Arabia’s accession to the UN Convention on Contracts for the International Sale of Goods (CISG) in August 2023. Saudi Arabia joined only Parts I and II, postponing a decision on Part III pending further analysis of its compatibility with Sharia law. Two months earlier, Saudi Arabia enacted the Civil Transactions Act (CTA), its first civil law codification, largely replacing Sharia in contractual and non-contractual obligations. However, the CTA lacks conflict rules, leaving Saudi Arabia without legislation on conflict-of-law rules for sale contracts. This paper explores Saudi Arabia’s options for joining Part III of the CISG, the possibility of choosing foreign law or the entire CISG before Saudi courts or in arbitration, and compares the CISG with the CTA. It assesses the legal and practical challenges of harmonizing Saudi Arabia’s new legal framework with international sales law.