The Law To Know
Flag of Saudi ArabiaLaw of Saudi Arabia

Module 1

Foundations of Saudi Arabian law: Islamic legal traditions and the formation of the Kingdom, Sharia and the Basic Law, the sources and hierarchy of law, codification, and international law

Saudi Arabia is not a civil-law system and not a common-law system. It is a monarchy governed by Islamic law in which the Basic Law of Governance (1992) says that the constitution of the Kingdom is the Book of God and the Sunnah of the Prophet, and in which modern legislation, issued by the King and the Council of Ministers, now covers most of commerce, labour, companies, property, procedure and many other fields. The two are meant to work together: Sharia is the foundation, legislation fills in the detail and must not conflict with Sharia. For the last decade the Kingdom has been codifying areas that were once left to the discretion of judges applying classical Islamic jurisprudence, notably personal status, civil transactions and evidence, so that private law is becoming more written, more predictable and easier to explain to a foreigner. A reader who deals with Saudi Arabia, whether as a visitor, resident, employee, investor, family or property buyer, should learn where the rules come from, how they rank and which authority has the last word.

Flag of Saudi ArabiaThis course explains the law of Saudi Arabia, not US law. Rules that look the same elsewhere may be different.

By the end of this module you can

  • Trace the path from Islamic legal tradition and the unification of the Kingdom to the Basic Law.
  • Explain what Articles 1, 7 and 48 of the Basic Law say about Sharia and legislation.
  • Describe the hierarchy of instruments: royal decrees, Council of Ministers resolutions and ministerial regulations.
  • Explain why the Kingdom codified private law and what is still uncodified.
  • Explain how international agreements become part of Saudi law.

Part 1. The lecture

From Islamic jurisprudence to the modern Kingdom

Islamic law in the peninsula. The legal tradition of the Arabian Peninsula is that of Islamic jurisprudence (fiqh), the science by which scholars derive rules from the Quran, the Sunnah (the recorded practice and sayings of the Prophet), consensus and reasoning. In central Arabia the dominant school has been the Hanbali, and the judges (qadis) traditionally decided cases by consulting classical texts of that school, with wide discretion and few written statutes. In the Hejaz, with its trade and pilgrimage, administrative practice was shaped earlier by Ottoman and local regulations.

The Kingdom. King Abdulaziz united the territories into the Kingdom of Saudi Arabia in 1932. As the state grew it added ministries, a Council of Ministers (1953), a Board of Grievances for complaints against the government and a series of royal decrees and regulations on trade, labour, companies, oil and the administration. The Basic Law of Governance of 1992 gave the Kingdom a written statement of its constitutional foundations, followed by the Shura Council Law and the Law of Provinces the same year, and the Council of Ministers Law in 1993.

DateEventWhy it matters
Early centuriesDevelopment of Islamic jurisprudence and the schoolsThe Hanbali school is the main tradition of the Saudi courts
1932The Kingdom of Saudi Arabia is foundedOne state, one royal authority
1953The Council of Ministers is formedA modern executive with ministries
1992The Basic Law of GovernanceThe constitutional statement: Quran and Sunnah as the constitution
2007The Law of the Judiciary and the Law of the Board of GrievancesModern court structure and administrative justice
2021 onwardsA programme of codifying personal status, civil transactions, evidence and penaltiesWritten private law replaces much judicial discretion

The Basic Law, Sharia and the instruments of legislation

What the Basic Law says. Article 1 declares the Kingdom a sovereign Arab Islamic state whose religion is Islam and whose constitution is the Book of God and the Sunnah of His Prophet; Article 7 says the government draws its authority from the Quran and the Sunnah; Article 8 bases government on justice, consultation (shura) and equality in accordance with Sharia; and Article 48 says the courts apply the rules of Sharia to cases before them, according to the Quran and Sunnah and the laws issued by the ruler that do not conflict with them. Sharia and legislation are therefore not two competing systems: legislation operates inside the Islamic framework, and the courts apply both.

Why a statute is called a ‘regulation’. Because the Basic Law treats legislative authority as belonging to God, a Saudi statute is called a nizam, usually translated as ‘law’ or ‘regulation’, and the Council of Ministers and the King issue it as regulation within Sharia. The rules that implement a nizam are the executive regulations (lai’ha). This is more than a matter of words: it signals that every instrument is read together with Sharia.

InstrumentIssued byRole
The Basic Law of GovernanceRoyal Order, 1992The constitutional statement; the highest written instrument
A law (nizam)Royal Decree, after the Council of Ministers and review by the Shura CouncilCompanies Law, Civil Transactions Law, Labour Law and the like
Executive regulationsA minister or authority, under the lawDetail, forms, procedures and fees
Council of Ministers resolutionThe Council of MinistersPolicy and regulations within its powers
Ministerial decisions and circularsThe relevant ministry or authorityDay-to-day rules, platforms and procedures
Judicial decisionsThe courts, with the Supreme Court’s principlesGuide the courts; no strict system of binding precedent

Publication. Laws and regulations are published in the official gazette (Umm Al-Qura) and on the website of the Bureau of Experts at the Council of Ministers, which is the first place to look for the current Arabic text. Arabic is the language of the law and of the courts, so any English version is a translation and a certified Arabic version is needed for court use. Dates in the gazette follow the Hijri calendar.

Worked example (invented)

A foreign company asks which rule governs its contract with a Saudi supplier: a clause in a ministry circular, a provision of the Civil Transactions Law or a principle of Hanbali fiqh.

Which prevails? A law issued by royal decree outranks a ministerial circular; the circular must not conflict with the law, and both must not conflict with Sharia.

Where does fiqh fit? It fills gaps where no law governs, and it shapes the reading of the law.

Result: the lawyers should start with the law and its regulations, then check the circular and ask how the courts read the point.

Codification, the courts’ role and international law

Codification. Until recently, private and criminal law were largely uncodified: judges applied classical fiqh with discretion, so similar cases could end differently. The Kingdom has therefore moved to written codes: a Law of Procedure before the Sharia Courts and a Law of Criminal Procedure (2013), an Evidence Law (2021), a Personal Status Law (2022), a Civil Transactions Law (2023) and a Commercial Courts Law (2020), with the codification of penalties (ta’zir) announced and being developed in stages. The aim is clarity and predictability for citizens, residents and investors. The codes draw on Islamic jurisprudence and, in places, on modern comparative law, and they do not replace Sharia as the source of the law; they state it in written form.

Courts and precedent. The Saudi courts do not follow a strict doctrine of binding precedent as in the common law. They apply the text of the law, fiqh where the law is silent, and the principles the Supreme Court sets to encourage consistency; the Ministry of Justice publishes judgments and judicial principles, which makes the law easier to research than before.

International law. The Kingdom is a member of the United Nations (since 1945), the Gulf Cooperation Council, the Arab League, the Organisation of Islamic Cooperation and the World Trade Organization. Treaties and agreements are issued and amended by royal decree (Article 70 of the Basic Law), after review by the Council of Ministers and the Shura Council; once issued, they take effect as Saudi law, subject to Sharia. The Kingdom has ratified several human rights treaties, such as the Convention against Torture, CEDAW and the Convention on the Rights of the Child, with reservations that protect Sharia, and it has not become a party to the two main international covenants on civil and political and on economic and social rights. It is a party to the New York Convention on foreign arbitral awards (Module 8).

  • Check the date. Many Saudi laws were issued or replaced in the last few years; always check the current text and its executive regulations.
  • Read the Arabic. A translation is a guide; the Arabic text governs.
  • For a foreigner. Ask which law and which authority govern your matter, and whether Sharia raises a question the law does not answer.

Part 2. Lab: Which Source?

Sort each item by the source of Saudi law it belongs to.

Situation 1 of 6

Article 1, which names the Book of God and the Sunnah as the constitution

Where does this belong?

Part 3. Lab: Which Rule Prevails?

Choose the best answer in each situation.

Situation 1 of 3

A ministerial circular conflicts with a law issued by royal decree.

What is the result?

Part 4. Lab: Spot the Mistake

Click the statements that misstate Saudi law.

A newcomer’s notes

Click every sentence that causes a problem, then press Check. There may be 3 problems, and some sentences are fine.

Part 5. Check your understanding

Ten questions drawn from a larger pool. Sign in to have your score saved towards your certificate.

Loading quiz…

You have finished the free module

Here is what you can do now, and where the course goes next

Module 1 gave you

  • Trace the path from Islamic legal tradition and the unification of the Kingdom to the Basic Law.
  • Explain what Articles 1, 7 and 48 of the Basic Law say about Sharia and legislation.
  • Describe the hierarchy of instruments: royal decrees, Council of Ministers resolutions and ministerial regulations.
  • Explain why the Kingdom codified private law and what is still uncodified.
  • Explain how international agreements become part of Saudi law.

Next, 7 more modules and a capstone

  1. Module 2: The Basic Law and the institutions of the state: the monarchy and royal authority, succession and the Allegiance Council, the Council of Ministers, the Shura Council, and how a law is made and publishedYou will learn to describe the monarchy and the three authorities of the Basic Law.
  2. Module 3: Provinces, citizenship and society: the regions and governors, municipal government and urban planning, Saudi nationality and the status of foreign residents, and religion, society and the holy citiesYou will learn to describe the regions, governors and the Law of Provinces.
  3. Module 4: The judiciary and the legal professions: judicial independence, the court system and the Supreme Court, the Board of Grievances, the Public Prosecution, and lawyers, notaries and legal consultantsYou will learn to explain judicial independence and the guarantee of access to the courts.
  4. Module 5: Rights, public administration and accountability: the rights and duties in the Basic Law, the regulation of religion, family and personal conduct, administrative law and remedies, anti-corruption and public office, and privacy and personal dataYou will learn to list the main rights and duties of the Basic Law and explain how Sharia frames them.
  5. Module 6: Living, working, investing and owning property: visas and the iqama, Premium Residency, employment and Saudisation, foreign ownership of real estate and how to buy safely, the costs of owning, and family life
  6. Module 7: Civil law, family and succession: the Civil Transactions Law, contract and civil liability, property and real rights, the Personal Status Law, and inheritance and wills
  7. Module 8: Business, criminal justice and specialised law: companies and foreign investment, commercial and Islamic finance, employment and social insurance, taxation, criminal law and procedure, and intellectual property, digital, environmental and international law
  8. Capstone: Capstone: Lucas Meyer and the Riyadh data company

Each module has its own practice labs and a graded quiz, and a Certificate of Completion follows when you pass them all. The whole course is $15 once, or included in a Courses & AI Lab Pass.

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General education on the law of the Kingdom of Saudi Arabia, using invented people and businesses. It states laws and procedures in simplified form and is not legal advice. The law and its practice change, and every case turns on its facts, the current regulations and the authority concerned. It does not offer legal representation or a legal opinion on any case. Consult a lawyer licensed in the Kingdom for any real matter.

This course was written on 6 November 2026. To the best of our knowledge, it describes the law of Saudi Arabia as it stood on that date. Laws change, and we may have missed or misunderstood something. If you notice a change, or have other information, please do not hesitate to contact us: we will review it and update the course. We do not claim to be the final source of the law.

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