International Construction Law Review
EXPLORING THE SAUDI LEGAL LANDSCAPE: AN IN-DEPTH EXAMINATION OF THE NEW CIVIL TRANSACTIONS LAW IN THE CONTEXT OF FIDIC TIME BAR CLAUSES
Majd H Nasrallah
Associate, Secretariat
ABSTRACT
This article conducts an extensive examination of the applicability of FIDIC contracts within the Kingdom of Saudi Arabia (KSA), specifically focusing on the compatibility of time bar clauses with the overarching duty of good faith in the region. The research involves a comparative analysis of the Saudi Arabian legal system, including the newly enacted Saudi Civil Transactions Law, and neighbouring jurisdictions that blend elements of Sharia law with a Civil Code. The findings provide valuable insights into the alignment of Saudi Arabia’s legal framework with other Middle Eastern jurisdictions and underscore shared challenges and considerations across this legal landscape.
INTRODUCTION
For centuries, Saudi Arabia’s legal framework has been grounded in Sharia law, drawn from the Quran, Sunnah and Hadith. These sources allow for broad interpretations, leading to varied judicial rulings and procedural uncertainty.
However, recently, Saudi Arabia enacted the Civil Transactions Law (Decree No M/191, June 2023) (KSACTL), regulating various legal matters. This law takes precedence and allows recourse to Sharia principles when specific provisions are not applicable. Article 1(1) of the Civil Transactions Law provides:
“The provisions of this system shall apply to all matters addressed either explicitly or implicitly therein. In the absence of a specific provision that can be applied, general rules contained in the final provisions shall be applied. If there is no such rule,
the provisions derived from Islamic Sharia law most suitable for this system shall
be applied.”
Introducing codified legislation in the Gulf Cooperation Council (GCC) region presents challenges, especially when based on Islamic principles, requiring alignment with Sharia as the primary legal source. The main
Pt 4] Exploring The Saudi Legal Landscape: An In-Depth Examination
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