The Minister of Commerce, Chairman of the Board of Directors of the National Competitiveness Center, Dr. Majid bin Abdullah Al-Qasabi, affirmed that the Council of Ministers’ approval of the Kingdom’s accession to the United Nations Convention on Contracts for the International Sale of Goods comes in light of the wise leadership’s keenness – may God preserve it – to promote the growth of the 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.
He added that the agreement, which the National Center for Competitiveness raised a proposal for the Kingdom to join, will enable the adoption of regulatory and legislative frameworks for cross-border trade, which helps to adopt a unified system that governs the conclusion of those contracts, and promotes the growth of the Saudi economy in light of the accession of 95 countries to the agreement, which constitute about two-thirds of the economy. Global.
The agreement aims to provide a unified and flexible legal framework for concluding contracts for the international sale of goods across borders, in addition to providing a neutral and independent international regulatory framework for handling disputes for the international sale of goods, in addition to its inclusion of a modern set of legal rules that take into account various economic and social aspects and contribute to removing obstacles. In the field of international trade and enhance its development, in addition to its support for efforts to diversify the economy and enhance cross-border business dealings with regard to small and medium enterprises.
Joining the agreement contributes to supporting alternatives to settling disputes, in addition to facilitating the selection of the law to be applied in the event of a dispute, and other transactions.
The accession also helps to avoid ambiguity about the applicable law, as the agreement removes obstacles and enhances the transparency of procedures in international trade, the ability to legally predict and resolve disputes more efficiently, in addition to contributing to the development of the country’s local contract systems.
The center is working on studying the Kingdom’s accession to a number of international agreements, within the framework of its cooperation with the United Nations International Trade Law Committee (UNCITRAL) in light of the Council of Ministers’ approval of the memorandum of cooperation regarding the financial contribution to the “UNCITRAL” trust fund, which aims to create a favorable legal environment for trade. and investment, by raising awareness and understanding of the standards of international trade law, in addition to building capacities and developing programs related to areas of cooperation in a way that contributes to supporting the unified interpretation of UNCITRAL texts and standards of international trade law.
It is noteworthy that the Kingdom obtained UNCITRAL membership for the period (2022-2028) after its candidacy among the countries of the Asia-Pacific Group, in the elections that took place during the General Assembly meeting in March 2022.