The Legal Impact of Disposition of a Trade Name Under the Saudi Law

This study investigates the legal framework governing the regulation of trade names under Saudi law, with particular emphasis on the 2024 Trade Names Law. It explores the definition, formation, and transfer of trade names, whether associated with a business entity or treated as an independent intangible commercial asset. The research aims to evaluate whether Saudi legislation effectively addresses the legal complexities surrounding trade name transactions and safeguards the rights of stakeholders, including creditors, owners, and purchasers. The findings reveal that the 2024 Trade Names Law establishes a legal foundation for registering trade names in the commercial registry, ensuring enforceability against third parties. Furthermore, the law facilitates the transfer of ownership in alignment with creditors' interests. However, the study identifies areas for potential legislative improvement, particularly in relation to creditors' decision-making rights concerning the enforcement of financial obligations, registration timelines, and the appeals process. In response, the study advocates for enhanced executive regulations that are both comprehensive and equipped with robust safeguards for all stakeholders. Such advancements would foster equitable contracts and commercial relationships, thereby contributing to greater stability within Saudi Arabia's commercial sector.