ABSTRACT
This chapter provides an introduction to Saudi law in general, including the sources and applications of Shari'a law in contemporary legal systems. It also gives an overview of the development of Saudi commercial regulation and the importance of Saudi Arabia, both as the largest economy in the region and as a major oil and capital-exporting state. The main dilemma faced by Saudi legislators is regulating prohibited activities under Shari'a, especially when such activities are important in promoting economic growth. Islamic jurisprudence has been described by Schacht as the Canon Law of Islam and the 'common law' of the whole Islamic world. There is an independent field of study of Islamic law called usul alfiqh, or the science of source methodology in Islamic jurisprudence. Islamic jurisprudence recognizes local custom as an important source of law only when such practice does not breach Islamic principles. This applies even if the custom relates to a non-Muslim society.
