[2] Any contract that is not specifically prohibited under Sharia law is legally binding, with no discrimination against foreigners or non-Muslims.

[3] However, the degree of freedom of contract is governed by the prohibitions in the Quran, and two distinctive doctrines in Sharia law: riba (usury) and gharar (speculation).

(see below: Appendix) In 2007, King Abdullah initiated legal reforms to modernise the courts and codify Sharia law in Saudi Arabia.

The ulama, the religious body, approved a codification of Sharia law in 2010, and a sourcebook of legal principles and precedents was published on January 3, 2018.

(see below: Legal Reform) Saudi Arabia is principally governed by Sharia Law, with royal decrees playing a complementary role.

[6] Ordinances (nizam), consisting of royal decrees which address modern legal issues and bureaucratic matters, is another source of law.

One such example is Royal Decree No.11, dated 16 Rajab 1414, corresponding to 30 December 1993, which declared Saudi Arabia's ascension to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

[13] At common law, auctions, advertisements, displays of goods on shelves, tenders and the like are treated as mere invitations to create an offer.

If he does revoke his offer, it will be considered a breach of promise on his behalf, which is a great sin in Islam as it encourages rivalry and mischief among the people.

[7] Vitiating factors include mistake, misrepresentation, duress[24] and undue influence... Not all contractual arrangements are condoned in Sharia law.

[25] Classical Sharia law rarely discusses the idea of contractual freedom outside the standard contract types.

Islamic law did not permit exchange of unequal values of these articles and by analogy to a variety of their products.

Lack of knowledge about the existence or nonexistence of the subject matter, or concerning its quality, quantity, or date of performance, was held to trigger gharar.

[41] The ongoing refinement of the doctrine has been narrowed down to the presence or absence of uncertainty about future performance and not to the existence or non-existence of the subject matter at the time of contract.

If the nonexistent article or subject matter is certain to be delivered or performed at a future date the prohibition of gharar does not apply.

[45] As such, contracts involving relationships over time such as continuous supply of goods will not attract full liability if wrongfully terminated.

For contracted debt, the judge will call for a public auction for the property to be sold after the attachment of the defendant's movable goods.

[47] The Board of Grievances, a statutory tribunal[50] separate from the Sharia courts, is empowered to hear requests for the enforcement of foreign judgments[51] and arbitral awards.

[50] Article 6 of the Rules of Pleadings and Procedures of the Grievances Board provides that an applicant seeking to enforce foreign judgments or arbitral awards must prove that:[52] Firstly, the judgment or award must not be contrary to Sharia law or public policy; it must not offend the Sharia principles of riba and gharar.

Judgments or awards involving conventional insurance, speculative loss of chance, interest and potential profits would not be recognized.

King Abdullah succeeded to the throne in 2005 and since then has implemented various reforms in Saudi Arabia with the aim of modernizing the legal system to improve investor confidence.

[57] In 2010, the top religious body in Saudi Arabia gave the green light for codification of Sharia law.

[58] Nonetheless, it has been commented that such legal reforms will take a considerable period of time to be fully implemented due to lack of well-trained judges and lawyers and the ulama's resistance to modernisation and change.