Commercial papers · Legal glossary
Bill of exchangeIn Arabic: الكمبيالة
Promissory note, bill of exchange and chequeDefinition
A bill of exchange is الكمبيالة in Arabic: a written order by the drawer to the drawee to pay a set sum to a named person or to that person’s order. It is a different instrument from a promissory note and from a cheque.
How it varies across the GCC
In Saudi Arabia the particulars are in articles 1 and 2 of the Commercial Papers Law. Under the new Enforcement Law a bill is an enforcement instrument only if it is registered on the national e-platforms. In the UAE the verified provision is article 511 of Federal Decree-Law No. 50 of 2022. The other states are under review.
The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.
Basis by country
| Country | Basis |
|---|---|
| United Arab Emirates | Federal Decree-Law No. 50 of 2022, article 511. |
| Saudi Arabia | Commercial Papers Law, articles 1 and 2 (particulars). New Enforcement Law, article 7(1)(d): an enforcement instrument only if registered on the national e-platforms. |
| Bahrain | Under review |
| Qatar | Under review |
| Kuwait | Under review |
| Oman | Under review |
Sources
Official texts for the points on this page. General information, not legal advice. An article number is cited only where it was verified.
- Saudi Commercial Papers Law, art. 1, 2https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/4763eb94-047b-46f1-9697-a9a700f1b7ed/1
- Saudi Enforcement Law (Royal Decree M/237 of 1447H), art. 7(1)(d)https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/67dd54bc-c33a-48c8-8356-b44700a9ab55/1
- UAE Federal Decree-Law No. 50 of 2022, art. 511https://uaelegislation.gov.ae/en/legislations/1610