Business · Saudi Arabia · 13 hrs ago
Saudi law allows some 15-year-olds to trade and tightens cheque penalties
Saudi Arabia’s commercial transactions law allows 15-year-olds to run businesses with permission from a guardian, trustee or court.
They are treated as fully capable traders only within the scope of that permission, and their business obligations are limited to the money invested in the business.
The law also raises penalties for cheque offences, including issuing a cheque without enough funds or knowingly passing on such a cheque.
Repeat offenders can face up to five years in prison and a fine of up to 100,000 riyals.
Courts may take away convicted offenders’ cheque books and bar them from getting new ones for up to five years.
Banks can be fined up to 500,000 riyals for giving a new cheque book to someone despite a court ban.
The law also sets rules for presenting cheques, partial payments and banks’ responsibility for forged or altered cheques.
Saudi Arabia’s Commercial Transactions Law allows minors who have completed 15 years of age to conduct business with permission and under specified conditions.
The law raises penalties for cheque offences, including prison terms of up to five years for repeat offences.
Courts can order cheque books withdrawn and prevent convicted people from receiving new ones for up to five years.
Banks that breach a court order by issuing a new cheque book during a ban can face fines of up to 500,000 riyals.
Okaz reported on the law on November 13, 2026.
- Who
- The law affects minors seeking to trade, people convicted of cheque offences and banks.
- What
- It permits some 15-year-olds to conduct business and sets penalties for cheque offences.
- When
- Okaz published its report on November 13, 2026. The law’s effective date is not stated.
- Where
- Saudi Arabia.
- Why
- Not stated
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- Minimum age to trade
- 15 years, with permission from a guardian, trustee or court
- Repeat cheque offences
- Up to 5 years in prison and a fine of up to 100,000 riyals
- Cheque-book ban
- Up to 5 years
- Fine for banks breaching a court order
- Up to 500,000 riyals
- Cheque presentation period
- 180 days from the date the cheque is created
What people are saying
The minor who has completed 15 years of age may conduct commercial business, provided that permission is obtained from their guardian or trustee, or from the court if they refuse permission.
The authorised minor shall be treated as a fully competent merchant within the limits of what they have been authorised to do.
In the event of repetition of any of these offences within 3 years from the date of the judgment, the penalty shall be imprisonment for a period not exceeding 5 years and a fine not exceeding 100,000 riyals, or either of these penalties.