Saudi Arabia recently passed a new law requiring certain types of business to put in place third party liability insurance. The law came into force on 21 February 2014. This is a positive development not only for the insurance industry in the Kingdom, but also in ensuring that adequate protection is in place to protect workers and the public when major incidents occur. The new mandatory regime will be enforced through civil authorities and the licensing regime to ensure that all businesses to whom the requirements apply take the necessary steps.