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02 June 2023

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Law No. 16 of 1971 issuing the Law of Civil and Commercial Articles

Law Summary Record Type: LawNumber: 16Date: 25/08/1971 Corresponding to 04/07/1391 HijriNumber of Articles: 477Status: In force

Official Gazette :Issue: 7Offcial Journal Issue Publication Date: 01/01/1971 Corresponding to 05/11/1390 HijriPage from: 3458

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Part 1: Commercial Business

209 Article

Commercial Businesses are the works carried out by a person for speculation purposes even if he is not a merchant.

210 Article

Businesses related to the following matters are considered as commercial businesses irrespective of the intention or the capacity of the person doing them:-

1. Banking transactions.

2. Current account.

3. Exchange and Commercial Exchanges.

4. Brokerage and agency commission.

5. Bills and bonds ( to the order of) and checks.

6. Establishment of commercial companies and the sale or purchase of shares and bonds.

7. General stores and mortgages consequent to funds deposited in.

8. Extraction of minerals, oils and stone cutting and other things extracted from natural resources.

9. Various kinds of Insurances.

10. Stores intended for the public, the public playgrounds, cinemas, hotels, restaurants and stores of auction sales.

11. Distribution of water, electricity and gas, and a postal, telegraphic and telephone calls.

12. Transportation by land, sea and air.

13. Agencies of businesses and offices of tourism export and import.

14. Printing, publication, press, radio, television and broadcasting of news or photos, advertisements and sale of books.

15. Factories, even if connected with agricultural investment and undertakings of construction or manufacturing.

16. Contracting of building construction, modification, refurbishment or demolition once the contractor undertake supply of raw material or labour.

211 Article

All works related to marine navigation are considered a commercial businesses and following works in particular:-

1. Building, sale, purchase, renting and repair of ships.

2. Contracts related to wages and salaries of the captain of the ship, crew and other working personnel.

3. Nautical lending or borrowing.

4. Transport and sea consignments, and all related operations, like buying and selling of requirements, tools, ammunition, fuel, ropes and sails and supplies.

5. Different types of insurance.

212 Article

All works related to Air Navigation are considered commercial businesses and following works in particular:-

1. Building, sale, purchase, renting, hiring and repair of planes.

2. Contracts related to wages and salaries of crew and other working personnel.

3. Lending or borrowing.

4. Transport and Air consignments, and all related operations, like buying and selling of requirements and catering of aircrafts.

5. Different types of insurance.

All operations connected to the above commercial transactions or dealings or operations facilitating them and all works done by the merchant related to commercial affairs are considered as commercial businesses.

214 Article

Principally speaking all contracts of the merchants and relevant obligations are considered commercial except if such contracts and obligations are found to be connected to civil transactions or dealings.

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