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Copyright Protection


An author is a person who created works in the field of literature, art and sciences, , such as a man of letter, poet, painter, musician, or any other artist, according to the form in which the expression is conveyed, irrespective of their type, means of expression, importance, or purpose of authorship.

The following works are considered protected under copyright law in Saudi Arabia:

Original Works: This law shall protect works created in the fields of literature, arts, and sciences, irrespective of their type, means of expression, importance, or purpose of authorship, such as:

  • Written materials like books, booklets, and the like.
  • Works which are verbally delivered like lectures, speeches, poetry, songs, and the like.
  • Dramatic works, plays, shows, and similar presentations which involve motion, sound, or both.
  • Works which are prepared for broadcasting purposes or are presented through broadcasting.
  • Drawings, works of visual art, architecture, decorative art, artistic embroidery, and the like.
  • Audio and audio-visual works.
  • Applied art works, whether handcrafted or manufactured.
  • Photographic works and the like.
  • Illustrations, geographical maps, designs, plans, sketches, and visual works related to geography, topography, architecture, and science.
  • Three-dimensional works of geography, topography, architecture, or science.
  • Software.
  • Protection shall include the title of a work, if it is creatively unique, and not a common expression indicating the subject matter of the work.

Derived Works: This law shall also protect the following derived works:

  • Works of translation.
  • Works of abridgement, modification, illustration, editing, or any other form of alteration.
  • Encyclopedias and anthologies which are deemed creative with respect to the selection of content or arrangement, whether they are literary, artistic, or scientific works.
  • Compilations of folkloric works and expressions and selections therefrom, if such compilations are creative as to the selection or arrangement of their contents.
  • Databases, whether they are mechanically readable or can be read in any other manner, if they are creative as to the selection or arrangement of their contents.


Protection prescribed by law shall not cover the following:

  • Laws and judicial judgments, decisions of administrative bodies, international agreements, and all official documents, as well as the official translations thereof, subject

  • to the provisions concerning the circulation of such documents.
  • What is published in newspapers, magazines and periodicals, or broadcasted in daily news or news-like events .

Ideas, procedures, work methods, concepts of mathematical sciences, axioms, and abstract facts.


The moral rights shall be permanent rights of the author and are not subject to waiver or lapse by prescription, and shall be retained by their owner and shall not be forfeited by granting the right of exploiting the work in any manner. Additionally, they shall pass to the Ministry upon the death of the owner who has no heirs. Therefore, the author shall have the right to exercise any of the following:

  • Attribute the work to himself or publish it under a pseudonym or anonymously.
  • Object to any infringement on his work and prevent any deletion, change, addition, distortion, corruption, or any other form of tampering with the work itself.
  • Make any amendment to or deletion from his work, at his discretion.

Withdraw his work from circulation.


The author, or his designee, shall have the right to exercise all or any of the following, as per the nature of the work:

  • Printing and publishing the work in a readable format; recording it on audio or video tapes, compact disks, electronic memories, or any other means of dissemination.
  • Translating the work into other languages, quoting or altering it, or redistributing audio or visual material.
  • Communicating the work to the public via any possible means, such as displaying, acting, broadcasting, or data transmission networks.

All forms of material exploitation of the work in general, including permissible commercial rental.


The authors of theatrical works, musical plays, musical works or their representatives shall have the right to get approval or consent for the following:

  • Representing or performing their products publicly, including by publicly representing and performing in all ways or means.
  • Establishing the performance of their works or transmitting the same to the public by all means, manners and ways.
  • Translating their works.

The authors of the original fine art works and products and those of the original musical manuscripts - even if they have given up ownership of the original version of their products – shall have the right to participate in a percentage of the proceeds of each sale of these works and products, and this shall not apply to the works and products of architecture and the works and products of applied art.

The owners of the rights of the works and products shall have the right to rent them in the Kingdom, taking into account the adoption of the necessary precautions, such as:

  • Ensure the absence that may hinder the rental or leasing of them.
  • Identify and determine potential problems and infringements of leasing to check the ability to avoid the same.
  • The beneficiary provides awareness-raising to the target audience on the leasing mechanism.
  • Publicize the necessary guidance to the target audience.
  • Set a time date for the leasing exercise to take effect.

Regulate the contractual relationship of leasing in accordance with the provisions of the Law and the Regulation.


Copyrights shall be transferable, in whole or in part, either through inheritance or by lawful disposal, which shall be recorded in writing and shall limit the scope of the transferred right in terms of both time and place. Furthermore, the rights shall be passed to the author’s heirs, with the


exception of performing any amendment to or deletion from the work.

If the author instructs in his will that the publication of his work shall be barred or if he specifies a date for such publication, his will shall be carried out within its limits.

If the work is produced by an individual and its author dies, or it is a joint work and one of the authors dies with no heirs, his share shall be passed to those entitled to it according


to the provisions of Sharia.


Infringement of literary works: Any usage of the work that exceeds the concept of personal use is considered to be an encroachment, such as:

  • Use or copy the work for functional tasks.
  • Use of the work for commercial or profit-making purposes.
  • The use of the work on the contrary to the legitimate uses provided for by Law.
  • Renting, copying or allowing others to copy or modify the work on the grounds of possession of an original.
  • Any conduct that hinders the author from exercising his moral or financial right.

Infringement of audio & video products and radio broadcasting: Exceeding the methods of use specified by the person entitled to them shall be considered as an infringement of the right of an author to audiovisual and radio works, examples to the same shall include the following – without limitation:

  • Broadcasting by the Author to the public without prior authorization from the rights holders, such as the use of radio, music, video or satellite broadcasting in shops, restaurants, hotels, clubs, hospitals and other places where human beings exist or assemble.
  • Surpassing or breaking the precautionary barriers for the purpose of illegally presenting of radio materials.
  • Reproduction of broadcast material for the purpose of presentation, lease or sale of the same.
  • Adding or removing electronic slides of projectors in order that the device or system overcomes the possibilities of the limits under which such device or system was made in order to infringe on the rights of others.

Infringement of performance rights: If the performance of the work is performed at school events or so, unless the addressee receives prior approval from the rights holders, shall be considered an infringement of the performance rights of the work and while the performance of the work made in the applied classroom for the purpose of education shall be considered as a legal use. Additionally, any reproduction of a work during its copying, filming, registration or recording, for the purpose of exploiting or transmitting it to the public without the consent of the copyright holders, shall be considered as an infringement of the copyright.

Decoding the Electronic Devices: Any act leads to removal of the original precautionary information from the electronic devices produced by the manufacturer shall considered an infringement of the right of author, and any one facilitates any of the following shall be considered as violating body:

  • Removing or adding electronic or non-electronic slices to the display and receiver devices in order to exceed the limits set by the manufacturer.
  • Cancelation of the original operating program for the display and receiving equipment and its loading with forged software with a view to exceeding the limits and possibilities for which the device was designed.

Software Infringement: Any use of the software to the contrary of the uses specified by the copyright holder shall be deemed as an infringement of the right of the author:

  • Software and game software reproduction.
  • Leasing or licensing software, game software or licenses by a collective use without documents authorizing the lessor to exercise the right for the same.
  • Loading internal networks or devices by reproduced software.

Infringement of electronic works: Any person who proves a resurrection through websites on the World Wide Web shall be considered an infringer of the right of the author, as follows:

  • Publishing a work not owned by the publisher, publishing it under the pretense of its ownership or without obtaining a written authorization or a contract with the author of the work, his heirs or their representatives.
  • Amendment of the contents of a work, its nature, subject or title without the knowledge of the author and his prior written consent thereof, whether the amendment is made by the publisher, the producer, distributor or anyone else.
  • Reprinting the work by the producer, the publisher or the printer without obtaining prior written consent of the copyright owner, or having the documents authorizing the reprint.
  • Removal of any written or electronic information that may lead to forfeiting the owner’s copyrights.
  • Removing and cracking any protective electronic code that guarantees the use of the original copies of the work, such as coding or data recorded by the use of laser or other means.
  • Commercial use of intellectual works through deception, which is not permitted by the owners of the copyright, such as using copied software or receiving coded broadcasting programs through illegal means.
  • Manufacturing or importing tools –for the purpose of sale or rental- of any means which facilitate receiving or exploiting works through means other than those determined by owner of the rights.
  • Copying or photographing parts of a book or a collection of books or parts of any work, with or without compensation, without obtaining the written consent of the copyright owners and the competent authorities of the Ministry, with the exception of cases of lawful copying.
  • Import of counterfeit, imitated or copied works.
  • Keeping non-original works at the commercial establishment, its warehouse or any other facility owned by it, whether directly or indirectly and under any pretense.
  • Infringement on any of the protected rights specified in the law or violation of any of its provisions.


The period of copyright for the author of a work shall be for the duration of his life and for a period of fifty years following his death, and the period of copyright for joint works shall be computed from the date of the death of the last surviving author.

Protection period for works where the author is a corporate entity, or if his name is unknown, shall be fifty years from the date of the first publication of the work. If the name of the author becomes known before the end of the fifty years, the period of protection shall be fifty years after their death. If the work consists of several parts or volumes, published separately or over a period of time, each part or volume shall be considered an independent work for the purposes of the computation of its protection period.

Protection period for sound works, audio-visual works, films, collective works and computer programs is fifty years from the date of the first show or publication of the work, regardless of republication.

Protection period for applied art (handcrafted or manufactured) and photographs shall be twenty-five years from the date of publication. Computation of the period starts in this case on the date of the first publication of the work, regardless of republication. Additionally, protection period for broadcasting organizations shall be twenty years from the date of the first transmission of programs or broadcast materials, and for the producers of sound recordings and performers shall be fifty years from the date of performance or its first recording, as the case may be.


It is an authorization that permits a third party to exploit the work without the consent of the author or the copyright holders, as well as everyone shall be entitled to apply to the Authority for a compulsory license to reproduce a work or translate a work into Arabic, if the person is:

  • A Saudi citizen.
  • A legal personality based in the Kingdom.

The applicant for the compulsory license shall comply with the regulations governing the compulsory license, the type of license granted to it, and the specified time period. Furthermore, provide evidence proving that they made all efforts to obtain a contractual license from the right holder whose name appears on the work and whose application has been rejected; or the right-holder whose name appears on the work was requested a contractual license and his application was not answered at least three months before the application was submitted to the Authority; or they made efforts to reach the right holder without finding him.

Additionally, provide evidence that he informed the competent authority of the State believed to be the State of publication of the product to be translated or reproduced of his wish to avail himself of the right of translation or reproduction at least three months before the application for compulsory authorization was submitted to the Authority, furnish a proof of his ability to ensure the quality and accuracy of the translation or copy of the work, undertake to be able to pay the financial reward of the person entitled to it, and determine the retail price of the authorized work according to the number of editions.

Employment contracts


There are several types of employment contracts governed by Saudi Labor Law, including the following:

Fixed-term employment contract:

It is the contract that expires upon expiration of its term. However, both parties have the right to renew the contract by mutual agreement. Additionally, a fixed-term contract in Saudi Arabia may automatically convert into an indefinite-term contract if both parties continue to execute the contract after its expiration, if the contract term of the original contract and any renewals exceeds four years, or if the contract is renewed for three consecutive terms, in accordance with the provisions of Article (37) of the Saudi Labor Law for non-Saudis.

Indefinite-term Employment Contract:

It is a contract that is not tied to a specific duration. The parties have the right to terminate it, but only for a just cause. Either party wishing to terminate the contract based on a just cause, whether it is the employee or the employer, shall provide the other party with at least thirty days’ prior written notice before the termination date. If the employer is the one terminating the contract, the employer shall give at least sixty days prior written notice to the employee.

Training and Rehabilitation Contract:

This is a contract whereby the employer undertakes to train or rehabilitate an individual for a specific job. The training or rehabilitation contract shall be in writing and shall specify the type of profession for which the trainee is contracted to be trained, the duration of the training and its successive stages, the skills to be acquired, and the amount of remuneration to be given to the trainee at each stage, provided that such remuneration shall not be based on piecework or production. The contract shall clearly set out the rights and obligations of both the trainee and the employer and shall specify whether the training or rehabilitation will take place at an establishment belonging to the employer or at another establishment.

Flexible Employment Contract:

It is a contract pursuant to which a non-branched worker with one or more employers performs work on an hourly basis. The contract stipulates that the working hours under a flexible employment contract in Saudi Arabia shall be less than half of the standard working hours set by the facility. Additionally, the contract shall be a fixed-term contract, and the remuneration shall be determined on an hourly basis. The contract may also specify and modify the working hours after mutual agreement between the parties, with a maximum of 95 working hours per month.

Seasonal Employment Contract:

This is a contract under which work is performed during recurring seasons that are well-known in Saudi Arabia, such as Hajj and Umrah.

Temporary Employment Contract

It is a contract under which a part-time employee performs work for an employer for a number of hours per day that is less than half of the standard daily working hours in the facility, regardless of whether the employee works daily or on some days of the week.

Non-Saudi Employment Contract:

This type of contract differs from the previous types only with respect to the nationality of the employee. Moreover, a non-Saudi employment contract shall be written and a fixed-term contract. If the contract does not specify a term, it shall be deemed to be for one year from the date the employee actually commences work. If the work continues after the expiration of this term, it shall be considered renewed for a similar term.


The employment contract shall be written in two copies, a copy per each party. The employment contract shall be documented in accordance with the relevant legal provisions and the provisions of the Labor Regulations. The contract shall be deemed valid even if not written. In such a case, the employee alone has the right to prove the existence of the contract and the rights arising therefrom by all means of proof. Either party have the right to request the contract to be written at any time. As for Government Employees, and General Organization, the appointment decision or order issued by the competent authority shall substitute for the contract.


  • The employment contract in Saudi Arabia terminates under any of the following cases:
  • If the parties agree to terminate the contract, provided that the employee's consent is in writing.
  • If the specified term of the contract expires, and the contract has not been explicitly renewed in accordance with the provisions of the Labor Law, it shall continue.
  • At the will of one party in contracts of indefinite duration.
  • Resignation
  • Upon reaching the retirement age as stipulated in the provisions of the Social Insurance System, unless the parties agree otherwise to continue employment beyond this age.
  • Force Majeure
  • Permanent closure of the establishment
  • Issuance of a final court order or judgment terminating an employee's contract in any bankruptcy proceedings initiated in accordance with the Bankruptcy Law.

Termination of the activity in which the employee is engaged, unless otherwise agreed.


An employee may not actually work for more than 8 hours a day if the employer uses the daily work criterion, or more than forty-eight hours a week if he uses the weekly criterion. During the month of Ramadan, the actual working hours for Muslims shall be reduced to a maximum of 6 hours per day or 36 hours per week.

The number of working hours may be increased to 9 hours for certain categories of employees or for specific industries and tasks where the employee is not engaged continuously. Additionally, the number of working hours may be reduced to 7 hours per day for certain categories of workers or in certain hazardous or harmful industries or jobs, such as mining, explosives manufacturing, or tanneries.

In firms where work is done in shifts, an employer may, with the approval of the Ministry of Human Resources and Social Development, increase the number of working hours to more than 8 hours per day or 48 hours per week, provided that the average working hours, when calculated over a period of 3 weeks or less, shall not be more or less than eight hours a day or forty-eight hours a week.


An employee shall not be required to work more than 5 consecutive hours without a break for rest, prayer, and meals. This rest period shall not be less than half an hour at a time during the total working hours. Furthermore, the employee shall not remain at the workplace for more than 12 hours per day. The periods designated for rest, prayer, and meals shall not count as part of the actual working hours.


Friday is the official day for weekly rest for employees in Saudi Arabia, applicable to all types of work. The weekly rest shall be paid and shall not be less than 24 consecutive hours. The employer may substitute Friday with another day of the week after notifying the relevant labor office and allowing employees to fulfill their religious obligations on Friday.

No financial compensation shall be substituted for the weekly rest day. However, it is permissible to accumulate weekly rest days owed to an employee in remote areas or in jobs that require continuous work due to the nature of the work and employment circumstances, provided that the accumulation period shall not exceed eight weeks, subject to the agreement of both the employer and the employee, and with the approval of the Ministry of Human Resources and Social Development.


The employer shall pay the employee extra wages for overtime hours equivalent to the hourly wage plus 50% of the basic wage. The employer may, with the employee's consent, compensate the employee with paid compensatory leave days instead of the wages due for the overtime hours worked. If the operation in the establishment is based on the weekly standard for working hours, any hours exceeding that standard shall be considered overtime. Additionally, all hours worked on holidays and public holidays shall be considered extra hours.


Employees in Saudi Arabia have the right to an annual holiday of not less than 21 days for each year. This period increases to not less than 30 days if the employee has completed five consecutive years of service with the employer. The holiday shall be paid in advance, and the employee may postpone its annual holiday or a portion of it to the following year, with the employer's consent.

The employee has the right to receive wages for any accrued holiday if the employee leaves the job before taking it, corresponding to the duration for which the employee has not utilized the holiday.

Each employee has the right to have a holiday with the full wage on public holidays and special occasions, as follows:

  • Eid AL-Fitr holiday is for a duration of 4 days, starting from the day following the 29th of Ramadan.
  • Eid al-Adha holiday is for a duration of 4 days, starting from the Day of Arafah.
  • National Day holiday in the Kingdom is for one day.

The employee is entitled to full paid leave for five days in the event of marriage, or upon the death of the spouse, or any of the ascendants or descendants. The employee is also entitled to three days of leave in the event of the death of a sibling. All such leave is to be calculated from the date of the event. Additionally, the employee is entitled to three days of leave in the event of the birth of a child, to be taken within seven days from the date of birth. The employer has the right to request supporting documentation for these events.

Each employee has the right to have a leave of no less than 10 days and no more than 15 days with full wage, including the holiday for Eid al-Adha, to perform the Hajj pilgrimage once during the employee's period of service, provided that the employee has not performed it before. The employee has the right to have this leave only after completing two consecutive years of service with the employer In addition to that,the employer have the right to determine the number of employees who will be granted this leave annually according to the needs of the work.

An employee is entitled to full paid leave to sit for an exam for a non-repeated year, the duration of which shall be determined after the actual exam days. However, if the exam is for a repeated year, the employee shall be entitled to an unpaid leave equivalent to the number of actual exam days.

The employee is entitled to sick leave with full pay for the first thirty days, three-quarters of pay for the following sixty days, and without pay for the subsequent thirty days within a single year, whether these leaves are continuous or intermittent.

The working woman is entitled to maternity leave with full pay for a period of twelve weeks, which includes six mandatory weeks following childbirth. The working woman may distribute the remaining six weeks as she sees fit, starting from four weeks before the expected date of delivery, which is determined by a medical certificate certified by a recognized health authority. If the remaining leave period is less than six weeks due to a delay in delivery beyond the expected date, the additional period will be considered as unpaid leave. In all cases, the working woman has the right to extend this leave for one month without pay.

The working woman is entitled to a paid leave of one month if she gives birth to a sick child or a child with a disability that requires continuous accompaniment. This leave begins after the end of her maternity leave. The working women has the right to extend the leave for an additional month without pay.


The employee is entitled to an amount of money payable by the employer, based on the duration of service and the last wage received. If the employee's service ends, the employer shall pay the employee's wages and settle the employee's rights within a maximum of one week from the contract expiration. However, if the employee terminates the contract, the employer shall settle the employee's full rights within a period not exceeding two weeks. The employer shall deduct any outstanding debts owed by the employee to the employer due to work-related matters from the amounts owed to the employee.

If the employment relationship ends, the employer shall pay the employee an end-of-service gratuity based on the duration of service. The gratuity shall be calculated as half a month's wage for each of the first five years of service, and one month's wage for each subsequent year. The last wage received shall be used as the basis for calculating the gratuity. The employee shall also be entitled to a gratuity for any fraction of a year, proportional to the period worked during that year.


A resignation shall be deemed accepted if 30 days have passed since its submission without a response from the employer. The employer has the right to delay the acceptance of a resignation request for a period not exceeding sixty days if the interests of work so require, provided that a written explanation is given to the employee. The delay in acceptance shall occur before the expiration of the initial thirty-day period, and the period of delay shall be calculated from the date the explanation is provided to the employee. The employment contract shall be terminated upon the acceptance of the resignation by the employer, or after the expiration of the thirty-day period without a response from the employer, or upon the completion of the delay period referenced above.

The employee has the right to rescind the resignation request within a period not exceeding seven days from the date of its submission, unless the employer has accepted it before the rescission. It is not valid for the resignation request to specify a deferred date for its implementation.

The employment contract shall remain in force during the period of the resignation request, both parties are obligated to fulfill all the obligations arising therefrom during this period. The employee whose contract ends by resignation shall be entitled to all rights prescribed under the Saudi Labor Law.

The Board of Directors of a Joint-Stock Company


The Board of Directors of a joint-stock company in Saudi Arabia is the primary body responsible for managing the company. It represents all of the company's shareholders and is tasked with fulfilling its duties of care and loyalty in overseeing its operations. The Board of Directors shall act to preserve, develop, and enhance the company's interests and values.


The number of members on the Board of Directors of a joint-stock company in Saudi Arabia should be in proportion to the size and nature of the company’s activities. The company's Articles of Association determine the number of board members, which must be no fewer than three. It is also required that all board members be natural persons. Notably, the majority of board members must be non-executive. Additionally, the number of independent board members must not be less than two or one-third of the total board members, whichever is greater. It is also important to note that every shareholder has the right to nominate themselves, another shareholder, or even a non-shareholder for membership on the Board of Directors.


The company's Articles of Association specify the number of board members, which must not be less than three. The General Assembly elects the board members for a term defined in the Articles of Association, provided that the term does not exceed four years. Re-election is permitted unless the Articles of Association state otherwise. It is also required that no board member hold a position on the board of more than five listed joint-stock companies simultaneously. Additionally, the company must notify the regulatory authority of the names and positions of its board members within five business days from the start of the board's term or their appointment, whichever is sooner. Any changes to the board membership must also be reported to the authority within five business days of the change.


A board member shall be a professional of sufficient competence, possessing the necessary experience, knowledge, skill, and independence to effectively perform their duties. In particular, the following requirements are required:

1- Capable of leadership: The individual shall demonstrate strong leadership skills that enable them to effectively delegate authority, inspire high performance, implement best practices in management, and uphold professional ethics and values.

2- Competence: The individual shall have the appropriate educational qualifications, professional and personal skills, relevant training, and work experience related to the company’s current and future activities, or fields such as management, economics, accounting, law, or governance. A willingness to learn and undergo further training is also required.

3- Guidance Ability: The individual must possess technical, leadership, and managerial skills, along with the ability to make quick decisions, understand the technical requirements of operations, and provide strategic direction, planning, and a clear vision for the future.

4- Financial Knowledge: The individual must be able to read and understand financial statements and reports.

5- Health Fitness: The individual must not have any health condition that would prevent them from performing their duties and responsibilities effectively. The General Assembly must take into account the recommendations of the Nomination Committee and ensure that candidates possess the necessary personal and professional attributes to perform their duties effectively when electing board members.


The company's Articles of Association specify the procedures for terminating board membership. The General Assembly has the authority to dismiss all or some members of the Board, even if the Articles of Association state otherwise. In such cases, the General Assembly must elect a new Board or appoint replacements for the dismissed members, as applicable. Additionally, the General Assembly, upon the recommendation of the Board, may terminate the membership of any board member who fails to attend three consecutive meetings or five separate meetings during their term without a valid excuse accepted by the Board.


An Independent board member shall be able to perform their duties, express their opinions, and vote on decisions objectively and impartially. This enables the Board to make sound decisions that contribute to the company’s success. The Board is required to conduct an annual assessment to evaluate the member’s independence and ensure that no relationships or circumstances exist that could affect, or potentially affect, their impartiality.

  • Ownership of 5% or more of the company’s shares or the shares of another company within its group, or having a family relationship with someone who owns this percentage.
  • Family relationship with any member of the company’s board or any other company within its group.
  • Family relationship with any of the company’s senior executives or any other company within its group.
  • Membership on the board of another company within the group of the company for which the person is being considered for board membership.
  • Having worked, or currently working, as an employee during the past two years for the company or any other company within its group, or owning a controlling interest in the company or any related party, such as auditors or major suppliers, during the past two years.
  • Having a direct or indirect interest in any business or contracts conducted on behalf of the company.
  • Receiving financial compensation from the company, in addition to board membership fees or fees for participation in any of its committees, that exceeds either SAR 200,000 or 50% of their board fees from the previous year, whichever is less.
  • Participating in activities that compete with the company or engaging in a line of business related to the company’s operations.
  • Having served for more than nine consecutive or cumulative years as a member of the company’s board.


The Board of Directors of a joint-stock company in Saudi Arabia has the full powers to manage the company and direct its business to achieve its objectives. The following outlines the key responsibilities and powers of the Board: -

  • Formulating the company’s plans, policies, strategies, and key objectives, overseeing their implementation and periodic review, and ensuring the availability of the necessary human and financial resources to achieve them.
  • Developing internal control systems and general oversight procedures.
  • Formulating policies and procedures to ensure the company’s compliance with laws and regulations, as well as its commitment to disclosing material information to shareholders and stakeholders.
  • Preparing the Board of Directors' report.
  • Establishing clear and specific policies, criteria, and procedures for board membership that align with the mandatory provisions of the Corporate Governance Regulations, and implementing them once approved by the General Assembly.
  • Developing a written policy governing the relationship with stakeholders.
  • Overseeing the company’s financial management, cash flows, and its financial and credit relations with third parties.
  • Preparing and approving the company’s preliminary and annual financial statements before publication.
  • Ensuring the accuracy and integrity of the data and information required to be disclosed, in accordance with the applicable disclosure and transparency policies and regulations.
  • Establishing effective communication channels that allow shareholders to continuously and regularly access information on the company’s various activities and any material developments.
  • The formation decision includes naming committee members and specifying their duties, rights, and obligations, as well as evaluating the performance and work of these committees and their members.
  • Determining the types of compensation to be granted to employees, such as fixed bonuses, performance-linked bonuses, and stock-based incentives.
  • Notifying the General Assembly at its meeting of any business or contracts in which a board member has a direct or indirect interest. This notification should include information provided by the member to the Board and be accompanied by a special report from the company’s external auditor.
  • Establishing the values and standards that govern the company’s work.


The Chairman of the Board is responsible for leading the Board and overseeing its operations to ensure the effective performance of its duties. The specific responsibilities and powers of the Chairman include the following:

  • Ensuring that board members receive complete, clear, accurate, and non-misleading information on time.
  • Ensuring that the Board discusses all critical matters effectively and on time.
  • Representing the company before third parties in accordance with the provisions of the Companies Act, its executive regulations, and the company's Statutes.
  • Encouraging board members to perform their duties effectively and in the company’s interest.
  • Ensuring that effective communication channels exist with shareholders and facilitating the conveyance of their opinions to the board.
  • Promoting constructive relationships and active participation between the board and executive management, as well as among executive, non-executive, and independent board members, while fostering a culture that encourages constructive criticism.
  • Preparing the agenda for board meetings, taking into account any issues raised by board members or the external auditor, and consult with both Board members and the CEO during its preparation.
  • Holding regular meetings with non-executive board members in the absence of any company executives.


Each member of the Board shall perform the following duties and responsibilities through their membership in the Board:

  • Proposing suggestions to develop the company's strategy.
  • Monitoring the performance of the executive management and assess the extent to which they have achieved the company's objectives and purposes.
  • Reviewing reports of the company’s performance.
  • Ensuring the accuracy and integrity of the company’s financial statements and information
  • Ensuring that the company’s financial control and risk management systems are robust.
  • Determining appropriate levels of compensation for executive management members.
  • Expressing an opinion on the appointment and dismissal of executive management members.
  • Participating in the development of the company’s succession and replacement plans for executive roles.
  • Fully complying with the provisions of the Companies Act, the Capital Market Law, their executive regulations, and other related laws, as well as the company’s Statutes, in the performance of board duties, and refraining from engaging in or participating in any activities that could be deemed detrimental to the management of the company’s affairs.
  • Attending board and general assembly meetings, and avoiding absences unless for a valid reason communicated to the chairman in advance or due to emergency circumstances.
  • Allocating sufficient time to fulfill their responsibilities, preparing for board and committee meetings, and participating effectively, including asking relevant questions and discussing matters with senior company executives.
  • Studying and analyzing relevant information related to the topics discussed by the board before expressing an opinion on them.
  • Encouraging other board members to freely express their opinions, facilitating board deliberations on matters, and seeking the opinions of relevant executive management members or others when necessary.
  • Fully and promptly informing the board of any direct or indirect personal interest in transactions and contracts conducted on behalf of the company, including the nature and extent of the interest, the names of involved parties, and any expected benefits, whether financial or non-financial. In such cases, the member shall abstain from voting on any decisions related to these matters, in accordance with the provisions of the Companies Act, the Capital Market Law, and their executive regulations.
  • Fully and promptly informing the board of any direct or indirect involvement in activities that could compete with the company, or if the member competes, directly or indirectly, with the company in any area of its business, in accordance with the provisions of the Companies Act, the Capital Market Law, and their executive regulations.
  • Not disclosing or revealing any confidential information obtained through board membership to any of the company’s shareholders, unless during a general assembly meeting or to third parties as required by the Companies Act, the Capital Market Law, and their executive regulations.
  • Acting on complete information, in good faith, with due care and attention, and in the best interests of the company and its shareholders.
  • Understanding their duties, roles, and responsibilities arising from their board membership.
  • Continuously enhancing their knowledge of the company’s activities and related financial, commercial, and industrial fields.
  • Resigning from the board if they are unable to fully discharge their duties as a board member.


The board of directors shall hold regular meetings to effectively carry out its duties and may also convene additional meetings as needed. At a minimum, the board shall hold four meetings per year, with at least one meeting every three months.

Additionally, the board shall meet upon the invitation of its chairman or at the request of two of its members. Notice of the meeting, along with the agenda and any relevant documents and information, must be sent to each board member at least five days prior to the meeting unless circumstances require an emergency meeting, in which case the notice, agenda, and documents may be sent in less than five days before the meeting. The meeting will only be valid if attended by at least half of the board members, provided that the number of attendees is no fewer than three unless the company’s bylaws specify a higher number or percentage.


The shareholders shall exercise control over the board in accordance with the provisions of the Companies Act. Shareholders may not interfere with the board's works or the company's executive management unless they are members of the board or part of the executive management. Any interference by shareholders shall be carried out through the general assembly and in accordance with its powers.

Jurisdiction of Saudi Courts


  • The courts of the Kingdom shall have jurisdiction to look into the lawsuits filed against a Saudi citizen even if he has no public or elected place of residence in the Kingdom, with the exception of lawsuits connected with the ownership of property outside the Kingdom.
  • The courts of the Kingdom shall have jurisdiction to look into the lawsuits filed against a non-Saudi citizen who has public or elected place of residence in the Kingdom, with the exception of lawsuits connected with the ownership of property outside the Kingdom.
  • The courts of the Kingdom shall have jurisdiction to look into the lawsuits filed against a non-Saudi citizen who has no public or elected place of residence in the Kingdom in the following cases:
  • If the lawsuit relates to property situated in the Kingdom or to an obligation for which the Kingdom is the place of origin or implementation.
  • If the lawsuit involves bankruptcy declared in the Kingdom.
  • If the lawsuit is against more than one person and one of them resides in the Kingdom.
  • The courts of the Kingdom shall have jurisdiction to look into a lawsuit filed against a non-Saudi Muslim who has no public or elected place of residence in the Kingdom, in the following cases:
  • If the lawsuit is against a marriage contract to be executed in the Kingdom.
  • If the lawsuit involves the seeking of a divorce or the rescission of a marriage contract and it is filed by a Saudi wife or one who has forfeited her nationality as a result of marriage provided either of them resides in the Kingdom, or if the lawsuit is filed by a non-Saudi wife residing in the Kingdom against her husband who had a place of residence therein in case the husband who had a place of residence therein in case the husband has deserted his wife and took up a place of residence abroad or if he had been deported from the territory of the Kingdom.
  • If the lawsuit is for support and the person for whom support is claimed resides in the Kingdom.
  • If the lawsuit involves paternity of a child in the Kingdom or relates to an issue of custody over a person or property when the minor or the one to be interdicted has a place of residence in the Kingdom.
  • If the lawsuit involves some other personal status issue and the plaintiff is a Saudi or a Non-Saudi citizen residing in the Kingdom, if the defendant has no known place of residence abroad.

With the exception of lawsuits concerning kind related to a property outside the Kingdom, the courts of the Kingdom shall have jurisdiction to look into a lawsuit if the two litigants accept their competency even if the lawsuits do not fall within their jurisdiction.


  • Jurisdiction shall be with the court within whose spatial jurisdiction the defendant resides. If the defendant does not reside in the Kingdom, jurisdiction shall be with the court within whose spatial jurisdiction the plaintiff resides.
  • If neither the plaintiff nor the defendant resides in the Kingdom, the plaintiff may file the lawsuit in a court of any city within the Kingdom.
  • If there are multiple defendants, jurisdiction shall be with the court within whose jurisdiction the majority reside. In case of a tie, the plaintiff shall have the decision to file the lawsuit before any court within whose jurisdiction the residence of one of them resides.
  • The lawsuit against government administration agencies shall be filled before the court within whose spatial jurisdictional the headquarter of such agencies is located. The lawsuit may be filled in the court within whose spatial jurisdictional the government agency’s branch is located in matters related to such branch.
  • A lawsuit concerning companies, associations (whether operational or under liquidation), or private institutions shall be filed before the court within whose jurisdiction their headquarters is located. This applies whether the lawsuit is filed against the company, association, or institution, or by the company, association, or institution against a partner or member, or by a partner or member against another. The lawsuit may also be filed before the court within whose jurisdiction a branch of the company, association, or institution is located, provided the matters in question are related to that branch.
  • The city, governorate, or center shall be the spatial jurisdiction of the court located therein. If there are multiple courts within such a jurisdiction, the Supreme Judicial Council shall determine the spatial jurisdiction of each. Centers that do not have courts shall be affiliated with the court of the nearest town in their region, unless the Supreme Judicial Council decides that they shall be affiliated with another court in the same region. In case of a dispute, whether positive or negative, regarding territorial jurisdiction, the lawsuit shall be referred to the Supreme Court for a decision.


General courts have jurisdiction over all final claims, proofs, and similar matters that do not fall within the jurisdiction of other courts, notaries public, or the Board of Grievances. They have exclusive jurisdiction over the following:

  • Lawsuits relating to real estate, including disputes over ownership, related rights, lawsuits for damages arising from the property itself or its beneficiaries, lawsuits for the establishment of usufruct, eviction, payment of rent, or contribution thereto, claims to prevent interference with possession or recovery thereof, and the like, unless otherwise provided by law.
  • Lawsuits arising from traffic accidents and violations stipulated in the Traffic Law and its executive regulations

General courts shall also have jurisdiction in governorate or center where there is no specialized court to look into all final lawsuits, cases, and proofs, and matters similar thereto, which fall within the jurisdiction of such specialized court, unless the Supreme Judicial Council decides otherwise.

The general court shall also have jurisdiction in a city where there is no criminal court, to the extent of the criminal court's jurisdiction, unless the Supreme Judicial Council decides otherwise.


  • The criminal court has jurisdiction over:
  • All criminal cases.
  • All matters upon which the judgment in a criminal lawsuit filed before it depends, unless the law provides otherwise.
  • If the judgment in a criminal lawsuit depends on the outcome of another criminal lawsuit, the lawsuit shall be suspended until the other lawsuit is decided.


Personal Status Courts have jurisdiction over:

  • All matters of personal status, including:
  • Proof of marriage, divorce, khulʿ (a form of divorce initiated by the wife), annulment of marriage, remarriage after divorce, custody, maintenance, and visitation rights.
  • Proof of waqf (endowment), bequest, lineage, absence, death, and determination of heirs.
  • Inheritance and division of estate, including real estate, if there is a dispute, or a share of waqf, bequest, minor, or an absentee.
  • Proof of the appointment of guardians, the establishment of custodians and overseers, and authorization for them to undertake transactions that require court approval, dismissing them, when necessary, the guardianship of the incompetent, and removal of it from them, and the regulations of this system shall specify the procedures required for these matters.
  • Proof of the power of attorney granted by a mute person who cannot read or write.
  • Marriage of a woman who has no guardian, or whose guardians have prohibited her from marriage.
  • Lawsuits arising from matters of personal status.
  • Lawsuits filed to impose penalties stipulated in the system of the General Commission for the Guardianship of Trust Funds for Miniros and their Counterparts.


The Labor Courts have jurisdiction over the following:

  • Disputes related to employment contracts, wages, rights, work-related injuries, and compensation
  • Disputes related to the employer's imposition of disciplinary penalties on the employee, or related to a request for exemption therefrom.
  • Lawsuits filed to impose penalties stipulated in the Labor Law.
  • Disputes arising from termination of employment.
  • Complaints of employers and employees whose objections against any decision issued by any competent authority in the General Organization for Social Insurance, regarding the obligation to register, contribute, or receive compensations, have not been accepted.
  • Disputes related to employees subject to the provisions of the Labor Law, including government employees.
  • Disputes arising from the application of the Labor Law and the Social Insurance System, without prejudice to the jurisdictions of other courts and the Board of Grievances.


The commercial courts in Saudi Arabia have jurisdiction over the following:

  1. Disputes arising between merchants due to their primary or ancillary commercial businesses.
  1. Lawsuits filed against the merchant in commercial contract disputes, when the value of the original claim in the lawsuit exceeds one hundred thousand riyals. The council may, if necessary, increase this value.
  1. Disputes arising from partnership contracts as outlined in the Civil Transactions Law.
  1. Lawsuits and violations arising from applying the Companies Law provisions.
  1. Lawsuits and violations arising from applying the The Bankruptcy Law provisions.
  1. Lawsuits and violations arising from applying the Intellectual Property Laws.
  1. Lawsuits and violations arising from applying other commercial regulations.
  1. Lawsuits and requests related to the judicial trustee, the custodian, the liquidator, the expert appointed, and others; when the dispute pertains to a Lawsuit that falls under the Court's jurisdiction.
  1. Lawsuits for compensation for damages arising from a lawsuit previously considered by the court.


  • Courts of appeal look into appeals from judgments of first-instance courts and, render a judgment after hearing the parties' arguments in accordance with the procedures prescribed in the Law of Civil Procedure and the law of criminal procedure.
  • Reviewing of Applications for Reconsideration of its Judgments:
  • If the judgment was based on documents that were found to be forged after the judgment was issued, or if it was based on testimony that was subsequently determined by the competent authority to be false.
  • If after the judgement, the petitioner obtained decisive papers as regards the lawsuit that he was unable to produce before the judgement.
  • If the opposing party committed fraud that could have influenced the judgment.
  • If the judgment ruled on something that the parties did not request or ruled on more than they requested.
  • If the wording of the judgment is contradictory.
  • If the judgment was issued in absentia.
  • If the judgment was issued against a party who was not properly represented in the lawsuit.
  • A person who is bound by a judgment but was not a party to the lawsuit may request a review of the final judgments.


The Supreme Court's jurisdiction is statutorily limited to the following cases:

First Case:

Reviewing of Hudud (fixed punishments) Cases including those involving murder, amputation, stoning, or qisas against a life or a limb of person. In this case, the court performs its role as a trial court, not a court of application of the law. It must follow the same procedures as a court of facts based on the type of lawsuit, examining it in the same manner and within the same limits. The court has the authority to address defendants other than those against whom the lawsuit was filed, or to consider other facts not attributed to them.

The Supreme Court's consideration of the subject matter in Hudud cases is mandatory, not permissibility. It is required that the judgment appealed against be between the same parties and concern the same charge. The law mandates a third trial to be conducted by the Supreme Court in Hudud cases, such as "murder, amputation, stoning, or qisas against a life or a limb of person”.

Second Case:

Oversight of judgments issued by courts of appeal about:

The violation of the provisions of Islamic Sharia and any regulations issued by the ruler that do not contradict it.

The issuance of a judgment by a court not properly constituted in accordance with the legal provisions.

The issuance of a judgment by a court or an unspecialized jurisdiction.

The error in qualifying the incident or describing it incorrectly.

In this case, the Supreme Court is considered a court of application of the law, not a trial court. This is the general rule regarding its jurisdiction.

Third case:

Consideration of requests to resume lawsuit after the lawsuit has been dismissed for the second time due to the plaintiff's absence from sessions and failure to provide an excuse acceptable to the court looking into the lawsuit.

Fourth Case:

Reviewing of Applications for Reconsideration of its Judgments, such as:

  • If the judgment was based on documents that were found to be forged after the judgment was issued, or if it was based on testimony that was subsequently determined by the competent authority to be false.
  • If after the judgement, the petitioner obtained decisive papers as regards the lawsuit that he was unable to produce before the judgement.
  • If the opposing party committed fraud that could have influenced the judgment.
  • If the judgment ruled on something that the parties did not request or ruled on more than they requested.
  • If the wording of the judgment is contradictory.
  • If the judgment was issued in absentia.
  • If the judgment was issued against a party who was not properly represented in the lawsuit.

A person who is bound by a judgment but was not a party to the lawsuit may request a review of the final judgments


Enforcement Court shall have jurisdiction to implement the following executive documents:

  1. Judgments, decisions and orders issued by the courts.
  2. Arbitrators' judgments attached to the execution order in accordance with the Arbitration Law.
  3. Reconciliation minutes issued by authorized authorities or ratified by the courts.
  4. Commercial papers.
  5. Contracts and notarized documents.
  6. Judgments, judicial orders, arbitrators' judgments, and notarized documents issued in a foreign country.
  7. Ordinary papers whose content is recognized as fully or partially due.
  8. Other contracts and documents that have the force of an enforcement instrument under the law.

The Enforcement Court has the authority to enforce judgments by coercive means and to supervise such enforcement. It has exclusive jurisdiction to adjudicate execution disputes, regardless of their value, in accordance with the provisions of summary proceedings. Additionally, it is empowered to issue decisions and orders related to execution, including orders to seek the assistance of the police or competent authorities, orders to prohibit or lift travel bans, orders of detention or release, orders for disclosure of assets, and to look into insolvency lawsuits.

Execution Courts and cases


تختص محكمة التنفيذ بتنفيذ السندات التنفيذية التالية:

  • الأحكام، والقرارات، والأوامر الصادرة من المحاكم.
  • أحكام المحكمين المذيلة بأمر التنفيذ وفقاً لنظام التحكيم.
  • محاضر الصلح التي تصدرها الجهات المخولة بذلك أو التي تصدق عليها المحاكم.
  • الأوراق التجارية.
  • العقود والمحررات الموثقة.
  • الأحكام، والأوامر القضائية، وأحكام المحكمين، والمحررات الموثقة الصادرة في بلد أجنبي.
  • الأوراق العادية التي يقر باستحقاق محتواها كلياً، أو جزئياً.
  • العقود والأوراق الأخرى التي لها قوة سند التنفيذ بموجب نظام.

ولمحكمة التنفيذ سلطة التنفيذ الجبري والإشراف عليه وتختص بالفصل في منازعات التنفيذ مهما كانت قيمتها، وفقاً لأحكام القضاء المستعجل.


لا يجوز تنفيذ الأحكام والقرارات والأوامر جبرًا، مادام الاعتراض عليها جائزًا، إلا إذا كانت مشمولة بالنفاذ المعجل، أو كان النفاذ المعجل منصوصًا عليه في الأنظمة ذات العلاقة.


مع التقيد بما تقضي به المعاهدات والاتفاقيات؛ لا يجوز لقاضي التنفيذ تنفيذ الحكم والأمر الأجنبي إلا على أساس المعاملة بالمثل وبعد التحقق مما يأتي:

  • أن محاكم المملكة غير مختصة بالنظر في المنازعة التي صدر فيها الحكم أو الأمر، وأن المحاكم الأجنبية التي أصدرته مختصة بها وفقًا لقواعد الاختصاص القضائي الدولي المقررة في أنظمتها.
  • أن الخصوم في الدعوى التي صدر فيها الحكم قد كلفوا بالحضور، ومثلوا تمثيلاً صحيحًا، ومكنوا من الدفاع عن أنفسهم.
  • أن الحكم أو الأمر أصبح نهائيًا وفقًا لنظام المحكمة التي أصدرته.
  • أن الحكم أو الأمر لا يتعارض مع حكم أو أمر صدر في الموضوع نفسه من جهة قضائية مختصة في المملكة.
  • ألا يتضمن الحكم أو الأمر ما يخالف أحكام النظام العام في المملكة.


لقاضي التنفيذ أن يأمر بالإفصاح عن أموال المدين بمقدار ما يفي بالسند التنفيذي، ويصدر الأمر بالإفصاح والحجز بعد إبلاغ المدين بأمر التنفيذ. ومع ذلك إذا ظهر لقاضي التنفيذ أن المدين مماطل من واقع سجله الائتماني، أو من قرائن الحال؛ جاز له الأمر بالإفصاح عن أمواله وحجزها قبل إبلاغه بأمر التنفيذ.


جميع أموال المدين ضامنة لديونه، ويترتب على الحجز على أموال المدين عدم نفاذ ما يقوم به من تصرف في أمواله المحجوزة.


لا يجوز الحجز والتنفيذ على ما يأتي:

  • الأموال المملوكة للدولة.
  • الدار التي يسكنها المدين ومن يعولهم شرعاً، ويقدر قاضي التنفيذ مقدار كفايته، ما لم يكن السكن مرهوناً للدائن.
  • وسيلة نقل المدين ومن يعولهم شرعًا، ويقدر قاضي التنفيذ مقدار كفايته، ما لم تكن الوسيلة مرهونة للدائن.
  • الأجور والرواتب إلا فيما يأتي:
  • مقدار النصف من إجمالي الأجر، أو الراتب لدين النفقة.
  • مقدار الثلث من إجمالي الأجر، أو الراتب للديون الأخرى.
  • وعند التزاحم، يخصص نصف إجمالي الأجر، أو الراتب لدين النفقة، وثلث النصف الآخر للديون الأخرى، وفي حال تعدد هذه الديون يوزع ثلث النصف بين الدائنين بحسب الوجه الشرعي والنظامي.
  • ما يلزم المدين لمزاولة مهنته، أو حرفته بنفسه.
  • مستلزمات المدين الشخصية، ويقدر قاضي التنفيذ كفايته.


  • يتم التنفيذ بناءً على طلب يقدمه طالب التنفيذ إلى قاضي التنفيذ.
  • يتحقق قاضي التنفيذ من وجود الصيغة التنفيذية على السند التنفيذي
  • يتحقق قاضي التنفيذ من استيفاء السندات التنفيذية، والشروط النظامية، ويضع خاتم التنفيذ عليها، متضمناً عبارة (سند للتنفيذ) مقروناً باسم قاضي التنفيذ، ومحكمته، وتوقيعه.
  • يصدر قاضي التنفيذ فوراً أمراً بالتنفيذ إلى المدين مرافقة له نسخة من السند التنفيذي مختومة بخاتم المحكمة بمطابقتها للأصل، ويبلغ المدين وفق أحكام التبليغ التي تحددها اللائحة، فإن تعذر إبلاغ المدين خلال عشرين يوماً من تاريخ صدور أمر التنفيذ؛ أمر قاضي التنفيذ بنشر الإبلاغ فوراً في الصحيفة اليومية الأوسع انتشاراً في منطقة مقر المحكمة، وتستوفى من المدين نفقة الإعلان مع استيفاء الحق.
  • يتم التنسيق بين وزارة العدل، والجهات ذات العلاقة؛ للإفصاح عن عناوين الأشخاص الذين لا يعرف لهم محل إقامة.
  • يجري الحجز التنفيذي على المنقول بانتقال مأمور التنفيذ إلى مكان المال، أو إصدار أمر مكتوب إلى الجهة المختصة بتسجيله بحسب الحال، وتحرير المأمور محضراً للحجز بناء على أمر قاضي التنفيذ، ويؤشر على سجل المال بمضمون المحضر.


  • لا يدخل صالة المزاد إلا من تأهـل للمشاركة فيه، ويتأهل المشاركون في المـزاد بموجب ترتيبات تضعها وزارة العدل بالاتفاق مع البنك المركزي السعودي، تنظم إثبات ملاءة المشاركين في المزاد، وطريقة خصم المبالغ والسداد فور رسو المزاد.
  • يعلن عن المزاد قبل اليوم المحدد لإجرائه بمدة لا تزيد على ثلاثين يوماً ولا تقل عن خمسة عشر يوماً في موقع بيانات التنفيذ، وبالإلصاق على باب المكان الذي فيه الأموال المحجوزة، مبيناً فيه يوم البيع وساعته ومكانه ونوع الأموال المحجوزة ووصفها بالإجمال، ويجوز لقاضي التنفيذ أن يأمر بنشر هذا الإعلان في صحيفة أو أكثر من الصحف اليومية خصماً من حصيلة البيع.
  • يبدأ المزاد بحضور مأمور التنفيذ، وينادي الوكيل بالقيمة التي يفتتح فيها المزاد للمال المحجوز، ولا يجوز البيع بأقل من القيمة المقدرة، فإن لم يتقدم مشتري، حدد مأمور التنفيذ موعداً آخر للمزاد خلال مدة لا تزيد على يومين، وتباع الأموال المحجوزة بما يقف عليه المزاد، إلا إذا كان المال عقاراً، أو كان من المعادن الثمينة أو المجوهرات أو ما في حكمها؛ فيأمر قاضي التنفيذ بإعادة التقويم، ويفتتح المزاد بالتقويم الأخير، وتباع بما يقف عليه المزاد.
  • إذا لم يسدد من رسا عليه المزاد الثمن في الموعد المحدد، يعاد البيع على مسؤوليته بمزايدة جديدة، ويلزم المتخلف بما نقص من الثمن وبمصروفات المزايدة، ويُرد إليه ما زاد على ذلك


  • توزع حصيلة التنفيذ بأمر من قاضي التنفيذ على الدائنين الحاجزين، ومن يعد طرفاً في الإجراءات، وإذا كانت حصيلة التنفيذ لا تكفي للوفاء بجميع حقوق ذوي الشأن (الدائنين الحاجزين ومن يعد طرفًا في الإجراءات)، واتفق هؤلاء على تسوية ودية فيما بينهم لتوزيعها، يثبت قاضي التنفيذ اتفاقهم في محضر ويوقعه مأمور التنفيذ، والمنفذ لهم، والقاضي، وتكون لهذا المحضر قوة السند التنفيذي في مواجهتهم.
  • وإذا لم تكن الحصيلة كافية، ولم يتفق ذوو الشأن على تسوية ودية لتوزيع الحصيلة؛ يثبت قاضي التنفيذ الاعتراض في محضر يوقعه القاضي، ومأمور التنفيذ، والأطراف ذوو الشأن، ويصدر قاضي التنفيذ حكماً يتضمن توزيع الحصيلة بين الدائنين، وفقاً للأصول الشرعية والنظامية.


  • إذا كان محل التنفيذ فعلاً أو امتناعاً عن فعل ولم يقم المنفذ ضده بتنفيذ التزامه خلال خمسة أيام من تكليفه بذلك وفقاً لأحكام نظام التنفيذ، فعلى قاضي التنفيذ الأمر باستعمال القوة المختصة (الشرطة) للقيام بما يلزم من إجراءات للتنفيذ، وذلك ما لم يتطلب التنفيذ أن يقوم به المدين بنفسه.
  • إذا تعذر التنفيذ باستخدام القوة المختصة، أو اقتضى التنفيذ قيام المدين به بنفسه ولم يقم بذلك، فلقاضي التنفيذ أن يصدر حكماً بغرامة مالية لا تزيد على عشرة آلاف ريال يومياً تودع في حساب المحكمة عن كل يوم يتأخر فيه المنفذ ضده عن التنفيذ، ولقاضي التنفيذ الحق في إلغاء الغرامة، أو جزء منها إذا بادر المنفذ ضده بالتنفيذ.
  • إذا تعذر استخدام القوة المختصة لإجراء التنفيذ، أو إذا فرضت غرامة مالية على المنفذ ضده ولم ينفذ خلال المدة التي يحددها قاضي التنفيذ، جاز له أن يصدر أمراً بحبس المنفذ ضده لإجباره على التنفيذ.

Courts and commercial cases


The Commercial Court in Saudi Arabia shall have jurisdiction to consider the following:

  • Disputes arising between merchants due to their main or ancillary business activities.
  • Lawsuits filed against the merchant in commercial contract disputes, when the value of the original claim in the lawsuit exceeds one hundred thousand riyals. The council may, if necessary, increase this value.
  • Disputes arising from partnership contracts as outlined in the Civil Transactions Law.
  • Claims and violations arising from the implementation of the Companies Law provisions.
  • Claims and violations arising from applying the Bankruptcy Law provisions.
  • Claims and violations arising from applying the Intellectual Property Laws.
  • Claims and violations arising from applying other commercial laws.
  • Claims and requests related to the appointed judicial receiver, the trustee, the liquidator, or expert, and the like, if the dispute is related to a claim falling under the jurisdiction of the court.
  • Claims for compensation for damages arising from a previous ruling issued by the court.


The amount of the original claim, as stipulated in the Law and Regulations, shall be determined on the basis of the original claimed amount stated in the statement of claim, with the exception of claims for litigation expenses or attorney's fees. If the claim does not entail a financial amount, such as claims for rescission or return of the sold item, and the like, the claimed amount in respect of which the claim is filed shall be considered.


Reconciliation and mediation shall be sought before filing any of the following claims:

A - The claims specified in paragraph (3) of Article 16 of the Commercial Courts Law, which are: (Disputes arising from partnership contracts as outlined in the Civil Transactions Law.)

B - The claims stated in paragraph (1) of Article 11 of the Regulations, which are: (Disputes arising between merchants due to their original or ancillary business and claims filed against the merchant in commercial contract disputes, if the value of the original claim does not exceed one million riyals.

C - Claims in which the parties are married or related to the fourth degree.

D- Claims relating to the contracts involving agreement - in writing - to resort to reconciliation, mediation and amicable settlement before resorting to the court.


  • The Plaintiff shall notify the Defendant in writing to pay the claimed right at least fifteen days before filing the claim. The lawsuit shall be filed under a statement of claim lodged to the court. Such statement shall include the following:
  • Particulars and addresses of the parties and their representatives, and their; and
  • A list of demands and identify all the grounds therefor.
  • The relevant department shall refer the cases and claims to the circuits, set a hearing date, and notify the defendant immediately after referral. The defendant shall, except in summary petitions, register with the commercial court a defense memorandum, including his response to the lawsuit, and all his defenses, specified demands, and all supporting grounds, at least one day before the scheduled hearing.


If a process is served to a defendant in person, or to his representative, or if either of them appears before the commercial court at any hearing, or submits a defense memorandum, the litigation shall be deemed to have been conducted in the presence of the defendant, even if he fails to appear thereafter. If a defendant or his representative was not served in person and fails to appear before the court, the court shall adjourn the hearing to a subsequent date, and serve the defendant thereof. If the defendant or his representative was not served in person for the second time and fails to appear, the court shall rule on the case, and its ruling against the defendant shall be deemed to have been rendered in his presence.


If a claimant fails to appear at any hearing without a reason acceptable to the commercial court, the court may rule on the case at the request of the defendant if the case is ripe for judgment, and such ruling shall be deemed to have been rendered in the presence of the claimant; if not, the court may dismiss the case without prejudice. A claimant may request the court to proceed with the case within 30 days from the date of said dismissal. If the claimant does not file a petition to proceed with the case within said period or if he fails to appear before the court after reopening the case, the court shall, upon its own motion, issue a ruling considering the case to have not been filed.


Court proceedings and pleadings shall be in writing; however, the circuit may hear the statements by the parties orally. The parties may request the commercial court to hear an oral summary of their statements and defenses at the conclusion of their pleadings, and the court shall record the same in the hearing record.

The judgment shall be pronounced in an open court and must be attended by the judges who participated in the deliberations. The absence of a judge who has signed the draft judgment shall not preclude the commercial court from pronouncing the judgment.

  • A date to deliver a copy of the judgment shall be set after the judgment is pronounced, provided such date does not exceed 20 days from the date of pronouncement.
  • A copy of the judgment shall indicate: the issuing commercial court and circuit, the date of issuance, and the judges who participated in the judgment;
  • names and capacities of the parties;
  • A summary of the facts of the case and claims and primary defenses of the parties; and
  • The grounds and the operative part of the judgment.


The commercial court’s judgments or orders shall be subject to expeditious execution in the following cases:

  • If the judgment or order is issued in an urgent (or expedited) case.
  • Debt satisfaction orders under the provisions of this law.

The court may, upon the request of the party in whose favor the judgement is rendered, decide to expeditiously enforce the judgment in any of the following cases:

  • If delayed enforcement would result in significant damage.
  • If the judgment is based on admission of the claimed right, or is based on an ordinary paper not disputed by the person against whom the judgment is rendered.

May judgments rendered in Commercial Cases be appealed?

Absent a specific provision, all judgments and decisions issued by the circuits of first instance at the commercial court shall be appealable, except for judgments in cases which do not exceed 50,000 riyals, as determined by the Supreme Judicial Council.


Absent a specific provision, all judgments and decisions issued by the circuits of first instance at the commercial court shall be appealable, except for judgments in cases which do not exceed 50,000 riyals, as determined by the Supreme Judicial Council.


A motion for reconsideration of final judgments, rendered pursuant to this

Law, may be filed in the cases provided for in the Law of Civil Procedure. A motion for reconsideration shall be made by means of a memorandum filed by the petitioner or his representative with the commercial court that rendered the final judgement, in accordance with applicable case-filing procedures. Such memorandum shall contain the particulars of the judgment sought to be reconsidered, a summary thereof, and the grounds for said motion.

Trademark Registration


The following are types of trademarks that are protected in Saudi Arabia:

  • Anything that takes a distinctive form, including names, words, signatures, letters, symbols, numbers, headings, seals, drawings, images, engravings, packs, graphic elements, shapes, colors, color combinations, or a combination of these.
  • Or any other mark or group of marks if used or intended to be used either to distinguish the goods or services of a facility or other facilities or to indicate the provision of a service, or the control of inspection of goods or services.
  • The voice or odor shall be considered as part of the trademark.


There are certain trademarks that are not covered by the legal protection granted to trademarks in Saudi Arabia. The following shall not be registered as a trademark or an element thereof:

  • The mark having no property or distinctive character or that made of data being only the name given by tradition to familiar goods or services, or the ordinary drawings and pictures of goods.
  • Expressions, designs, or any marks breaching the public morals or violating the public order.
  • Public emblems, flags and other logos, military and honorary insignia, national and foreign medals, coins (both metal and paper), and other symbols belonging to any of the GCC countries, any other country, the Arab or international organizations, or any of their institutions, or any imitation of such emblems, flags or logos.
  • Logos of the Red Crescent or Red Cross , and such other similar symbols, and the marks being an imitation thereof .
  • Marks that are identical or similar to symbols having a purely religious character.
  • Geographical names and data if their use is likely to cause confusion regarding the source or origin of goods or services.
  • The name, title, image, or logoof a third party, unless he or his heirs approve its use beforehand .
  • Particulars of honorary degrees or academic qualifications to which a registration applicant does not prove his legal entitlement .
  • Marks that may mislead the public or include misstatements on the origin or source of goods or services, or their other properties, as well as marks that include a fictitious, counterfeit, or forged trade name.
  • Marks owned by natural or legal persons with whom dealings are prohibited according to a decision issued by the Competent Authority (Ministry of Commerce).
  • Any trademark that is identical or similar to a trademark that was previously lodged or registered by third parties for the same goods or services, or for related goods or services, if the use of such mark to be registered is likely to create an impression of association with the registered mark owner’s goods or services, or will prejudice their interests.
  • Marks whose registration for some categories of goods or services would undervalue the other goods or services distinguished by such mark.
  • Marks deemed as just a reproduction, imitations, or translations of a famous trademark, or any part thereof, registered by third parties for using same in distinguishing goods or services that are identical or similar to the one distinguished by the renowned trademark .
  • Marks deemed as just a reproduction , imitations, or translations for a renowned mark , or any substantial part thereof, already registered by third parties for using same in distinguishing goods or services that are not similar to the one distinguished by the renowned trademark, , if such use is likely to indicate a connection between those goods or services and between the renowned trademark, or prejudices the interests of the owner of the renowned trademarks.
  • Marks that include the following words or expressions: "Concession, Concessionaire, Registered Trademark," "Registered Drawing," "Copyright," or such similar words and expressions.


The following persons shall have the right to register their trademarks:

  • Any GCC natural or juridical persons carrying out any commercial, industrial, handicraft or services activity.
  • Foreigners who reside in any GCC country and are authorized to carry out any commercial, industrial, handicraft or services activity.
  • Foreigners who belong to any State that is a member of a multilateral convention in which a GCC State is a party therein or who reside in such State.

Public authorities.


The application for the registration of a trademark shall be submitted on the form prepared for same to the Saudi Authority for Intellectual Property, either manually or electronically, by the concerned party if they have a domicile in the Kingdom, or by an authorized agent with a domicile in the Kingdom who is registered in the list of trademark registration agents. Furthermore, the application shall be limited to the registration of a trademark for a single class of goods or services.

If the applicant desires to register a trademark for multiple categories of products or services within a single application, an approval from the Saudi Authority for Intellectual Property shall be obtained in accordance with the international classification known as the (Nice Classification). Furthermore, the trademark registration shall not conflict with the public law in the Kingdom of Saudi Arabia.

The Saudi Authority for Intellectual Property shall inspect and decide the trademark application within ninety days of its filing date. Additionally, the Authority may require the applicant to fulfill the conditions, provide it with the documents or affect any required amendments to the application within ninety days of the notification date, or he shall be deemed to have withdrawn the application. The Authority shall have the right to either accept or reject the trademark registration application and shall serve the applicant at his address as stated in the application of its decision in writing or electronically.


The trademark application shall include the following particulars:

  • Image of the trademark to be registered.
  • The name, address, and nationality of the applicant shall be provided. If the applicant is a legal entity, its name and address shall also be provided.
  • A precise description of the trademark to be registered.
  • The products or services for which the trademark is to be registered and the applicable classification.
  • The priority date and number, along with the country in which the application was filed, if applicable.
  • Signature of the applicant or his appointed agent. If the application is filed by a legal person, the application shall be signed by its authorized signatory. If the application is filed by an agent, the agent's name and address shall be stated.


A trademark application shall be attached by:

  • Four copies of the trademark that are identical to the specimen of the trademark in the registration application.
  • If the application is filed by an agent, a copy of the power of attorney shall be submitted along with the original copy for verification. The original power of attorney shall be duly notarized, legalized and translated into Arabic.
  • Professional License .
  • Application Fee Receipt.
  • If the trademark to be registered includes one or more terms written in a foreign language, the applicant shall provide a certified translation of such terms into Arabic, along with a statement indicating the correct pronunciation.
  • Voice trademarks shall be submitted in the form of musical notation or a written description.

Odors trademarks shall be submitted with a written description.


In the event that the Saudi Authority for Intellectual Property rejects or suspends a trademark application, the applicant may appeal to the Appeals Committee within sixty (60) days from the date of notification. The appellant shall be duly notified of the Appeals Committee’s decision in writing or electronically within thirty (30) days from the date of its render. Additionally, the appellant shall have the right to appeal the decision to the competent court (Commercial Court) within sixty (60) days from the date of notification.

In the event that the Saudi Authority for Intellectual Property approves the trademark application, the applicant or its agent shall pay the publication fees within thirty (30) days from the date of notification of the decision; otherwise, the application shall be deemed assigned.

After sixty days from the date of acceptance of the trademark registration application in Saudi Arabia, and in the absence of any objection to the registration of the trademark or issuance of a final judgment in this regard, the Authority will register the trademark in the Trademark Register and issue a registration certificate to its owner.


First, If a trademark is registered, the effect of the registration shall apply from the date of submission of the application. Second, The owner of a registered trademark may prevent others, who do not take approval therefrom, from using a similar or identical trademark, including any geographical indicator, in the context of trade, to distinguish products or services that are identical, similar or correlated for which the mark has been registered, in such a way that confuses the consumers, and such confusion may occur in case of using the same mark or a similar one to distinguish goods or services that are similar to the ones for which the mark is registered.


The period of protection resulting from the registration of a trade mark shall be (10) years. Additionally, the trademark owner shall have the right to apply for a renewal of the protection period for additional (10) years, either within the final year of its protection period or within the six months following the expiration of registration, subject to payment of the prescribed fees. The renewal request shall be approved without any new examination of the trademark. The Saudi Authority for Intellectual Property shall issue a renewal announcement, publish it, and update the Trademark Register to reflect the renewal.


If the owner of a registered trademark grants a license to a natural or legal person to use the trademark for all or part of the products or services for which it is registered, the license agreement shall be in writing, duly documented, certified, and translated if the original document is in a language other than Arabic. The license duration, in all cases, may not exceed the trademark’s designated protection period of ten years.


The ownership of a trademark shall be assigned through a request submitted to the Saudi Authority for Intellectual Property by the assignee or their authorized agent; following the payment of the required fees. Additionally, a trademark may be transferred through inheritance, a will, or a gift. The Authority shall issue an announcement regarding the assignment of trademark proprietorship and publish it in its designated bulletin once the publication fees are paid. The trademark register will then be updated to reflect the proprietorship transfer.

Financial Restructuring


Basically, the bankruptcy procedures in the Kingdom of Saudi Arabia aimed at:

  • Enabling the bankrupt, defaulting or financially troubled debtor to capitalize on the bankruptcy procedures to realign their financial positioning, resume their work and contribute to supporting and developing the economy.
  • considering the rights of creditors and ensuring their fair treatment.
  • Maximizing the value of bankruptcy assets, selling the assets regularly and ensuring the fair distribution of the return on creditors upon liquidation.
  • Reducing the cost and duration of procedures and increasing their efficiency, primarily upon the restructuring of the small debtor positioning, or selling the bankruptcy assets and distributing them to creditors in a fair manner within a specified term.

The purpose of the Financial Restructuring Procedure in Saudi Arabia is to facilitate reaching an agreement between the Debtor and its Creditors to settle its Debts, and where the Debtor maintains the right to manage its activities under the supervision of the Financial Restructuring Officeholder appointed by the Court or the financial restructuring applicant.

In addition, the Small Debtors Protective Settlement Procedure aims to enable Small Debtors to reach an arrangement with Creditors to settle the Debts within a reasonable timeframe through simple Procedures at a low cost and with high efficiency, while maintaining Debtor’s ability to manage its business.


The provisions of Saudi Bankruptcy Law shall apply to:

  • Natural persons participating a commercial activity or a professional activity, or any activity with an aim to generate profits in the Kingdom.
  • Commercial and professional companies, regulated entities, as well as other entities or establishments with an aim to realize profits registered in the Kingdom.
  • Non-Saudi investors, whether natural or corporate Persons, holding assets in the Kingdom, or engaging in commercial or professional activities, or any activity with an aim to generate profits through a licensed establishment in the Kingdom. This Law shall only apply to said investors’ assets which are located in the Kingdom.


Debtor, creditor, or the competent authority overseeing the entity's operations, such as a person authorized to engage in financial activities or manage a public facility, may file a petition with the court for the initiation of a financial restructuring procedure if the debtor is:

  • likely to suffer financial difficulties that may lead to distress;
  • distressed.
  • bankrupt.

A petition for the initiation of a financial restructuring procedure shall not be filed if the debtor was subject to such procedure or to a small debtors’ financial restructuring procedure during the twelve (12) months preceding the petition.

The initiation of a financial restructuring procedure for small debtors requires the small debtor to be bankrupt or is likely to suffer financial difficulties that may lead to distress.

The Small Debtor, creditor, or the Competent Authority may apply for the initiation of a financial restructuring procedure instead of the initiation of a financial restructuring procedure. Additionally, the initiation of a financial restructuring procedure shall not be conducted in case the debtor was subject to such procedure or to a small debtors’ financial restructuring procedure during the twelve (12) months preceding the petition.


The petition for the initiation of the financial restructuring procedure shall be registered with the court upon filing it along with the relevant information and documents. This petition shall include a statement requesting the initiation of the financial restructuring procedure and conducting the financial restructuring procedure for the small debtors the following details:

  • The type of petition and the reason for its submission.
  • The type of the bankruptcy procedure;
  • The judgment or decision to initiate the procedure, if any.
  • The data of the appointed or proposed officeholder, if any

Additionally, the initiation of the financial restructuring procedure petition submitted by the debtor shall enclose the following:

  • An overview of the activity, a copy of the practice license and a copy of the legal debtor’s articles and memorandum of association as amended, if any.
  • A proof that the debtor is bankrupt, distressed, or is likely to suffer financial difficulties that may lead to distress.
  • An overview of the current financial position of the debtor and the effects of the economic situation for the preceding twenty-four months prior to submitting the petition.
  • The financial statements of the legal debtor for the preceding two fiscal years prior to submitting the petition.
  • The financial statements of the normal debtor, if any, for the preceding two fiscal years prior to submitting the petition.
  • The list of debts owed by the debtor shall be prepared in a duration not exceeding a month prior to the petition submission date, the list shall include (the value of each debt, entity, maturity date and supporting documents - each creditor’s name, ID No., commercial registration, address and contact - a statement of the secured debts and debt type).
  • A list of the debtor’s assets after assessing its total value, provided that it be counted in a duration not exceeding a month prior to the petition submission date.
  • The information of the creditor’s employees, the monthly salary of each employee and their total monthly salaries.
  • The approval of the competent authority for the registration of the petition to initiate a bankruptcy procedure or judicial deposit, in case the debtor is primarily an entity or has proof that the approval was submitted and thirty days passed without issuing an approval or rejection.
  • A statement including all the cases, judicial procedures, judgments and writs of execution related to the debt and the supporting documents.

Acknowledgement of the debtor stating that it was not subject to financial restructuring procedures or financial restructuring procedures for small debtors within the twelve months preceding the petition submission and a statement from the Bankruptcy Register.

The initiation of the financial restructuring procedures petition and the financial restructuring procedures for small debtors’ petition submitted by the debtor shall include as following:

  • A detailed statement of the debt owed to the creditor, including the debt’s value, entity, maturity date and payment method)
  • A proof that the debtor is bankrupt, distressed, or is likely to suffer financial difficulties that may lead to distress.
  • The approval of the competent authority for the registration of the petition to initiate a bankruptcy procedure or judicial deposit, in case the debtor is primarily an entity or has proof that the approval was submitted and thirty days passed without issuing an approval or rejection.

Furthermore, the initiation of the financial restructuring procedure petition submitted by the competent authority shall enclose the following:

  • The legal basis for considering the debtor an entity that is subject to the supervision of the Competent Authority.
  • A proof that the debtor is bankrupt, distressed, or is likely to suffer financial difficulties that may lead to distress.


Filing the initiation of the financial restructuring procedures petition registration or the financial restructuring procedure for small debtors shall result in the claim being pending for one hundred and eighty days. Moreover, the Court, on its initiative or per the request of the clerk or debtor, may extend this duration for no longer than one hundred and eighty days for the financial restructuring procedures and one hundred and twenty days for the financial restructuring procedure for small debtors.

Regarding initiating the financial restructuring procedures, the suspension of claims shall end either upon the completion of the 180 days or earlier if the petition to initiate the procedure is rejected, the court approves the proposal, or the procedure is concluded before receiving approval. With respect to the financial restructuring procedure for small debtors, the suspension of claims shall end either upon the completion of the 180 days or earlier if the petition to initiate the procedure is rejected, the proposal is executed or the procedure ended before its execution.


If a person other than the debtor files a petition for the initiation of a financial restructuring procedure, the court shall notify the debtor thereof within a period not exceeding five days from the date of filing. The debtor may object to the petition before the court at the scheduled hearing if:

  • The conditions for the initiation of the procedure are not satisfied.
  • The debt is disputed.
  • The creditor seeks to abuse the procedure.


Having agreed with an Officerholder listed in the Officerholders list to be responsible for the Officer holder's liabilities, debtors or the Competent Authority may issue the resolution of a financial restructuring procedure initiation for small debtors, provided that the small debtor or the Competent Authority provide all the information and documents necessary for the judicial deposit.

However, the resolution of the procedure initiation issued by the small debtor or the competent authority shall be only applicable after the judicial deposit. Furthermore, the debtor may submit a procedure initiation petition to the court and register the same accompanied by the relevant information and documents. However, in case the creditor submits a procedure initiation petition, the court shall notify the small debtor of it within a duration no longer than five days as of the date of its submission. Additionally, the small debtor may object to the petition within the hearing if the conditions for initiating the procedure are not applicable, if the debt is disputed, or if the creditor seeks to abuse the procedure.


The court shall set a hearing date for considering the petition for the initiation of the procedure within 40 days from the date of filing and notify the petitioner and debtor thereof within five days from the date of registering the petition. The court shall take any of the following decisions:

Initiate the procedure if:

  • The debtor is likely to remain in business, and the claims of creditors are likely to be settled within a reasonable time.
  • The debtor is bankrupt, distressed, or is likely to suffer financial difficulties that may lead to distress.
  • The applicant submitted the information and documents as stipulated in the schedule of information and documents.

Reject the Financial Restructuring request if:

  • The petition does not satisfy the statutory requirements, or is unjustifiably incomplete.
  • The petitioner acts in bad faith, or commits any of the offenses stipulated in this Law.

Postponing the session:

  • The court may postpone the session a period not exceeding 21 days to provide any additional information or documents it requests. The relevant party shall submit the required information within the deadline set by the court, before the new hearing date. The court shall decide to either initiate the

  • procedure or reject the petition. The court shall notify the debtor who fails to attend the session of its decision within five days from the date of its issuance.

Regarding the financial restructuring procedure for small debtors, it is initiated either by a court decision or by a judicial deposit. If the application to initiate the procedure is filed by a creditor, the court shall examine the application and issue an order to one of the following:

Initiate the procedure if:

  • The information presented shows that the court finds it probable that the small debtor's business can continue operating and that the creditors' claims can be settled within a reasonable period.
  • The small debtor is bankrupt, distressed, or is likely to suffer financial difficulties that may lead to distress.
  • The creditor has submitted the information and documents as stipulated in the schedule of information and documents.

The request was denied in the following cases:

  • The petition does not satisfy the statutory requirements, or is unjustifiably incomplete.
  • If the court, based on the information provided, finds it improbable that the small debtor's business can continue operating and that the creditors' claims can be settled within a reasonable period
  • The petitioner acts in bad faith, or commits any of the offenses stipulated.

postpone the hearing:

The court may postpone the hearing for a period not exceeding twenty-one days to allow for the submission of additional information or documents requested by the court from the applicant, the small debtor, or for any other reason. The concerned party shall submit the required information or documents to the court by the specified date, prior to the rescheduled session. The court shall then issue an order either initiating the procedure or rejecting the application. The small debtor who fails to attend the hearing shall be notified of the court's order within five days of the conclusion of the hearing.


In its decision to initiate a financial restructuring procedure, the court shall appoint a listed trustee. The petitioner for the initiation of the procedure may propose to the court the name of the listed trustee to be appointed. In the appointment of the trustee, his financial capabilities and academic qualifications, as well as the qualifications of his team shall be taken into consideration. The trustee shall exercise due diligence vis-a-vis creditors’ interests.

Upon the court's approval, the trustee may delegate certain duties to a listed trustee or expert, when necessary, provided that such duties are clearly specified in the court’s decision. The court may, when necessary, appoint more than one trustee to jointly act in accordance with this Law and the court's instructions, provided the court appoints a chairman from among them. The trustees shall be jointly liable for


their actions. The trustee shall deposit a copy of the court’s decision to initiate the procedure, along with a copy of their appointment, in the Bankruptcy Register.

Regarding the financial restructuring procedure of small debtors, the court, in its ruling to initiate the financial reorganization procedure, shall appoint a trustee from the list of bankruptcy trustees. The creditor may propose to the court the name of the trustee they wish to appoint from among those listed in the list. The trustee agreed upon by the small debtor or the relevant authority shall be considered appointed from the date of judicial filing. The court may, if necessary, appoint more than one trustee, with a maximum of three trustees working together in accordance with the law and its instructions, and shall choose one of them as the chairperson. The trustees shall be jointly responsible for their actions.

Taking into consideration that the following shall not be appointed as trustees or experts:

  • The debtor’s creditor, spouse, son-in-law, or relative up to the fourth degree.
  • The debtor’s partner, employee, auditor, or agent during the two years preceding the initiation of the procedure.


The court shall order the termination of a financial restructuring procedure if:

  • The debtor files a petition for the termination of the procedure because the conditions for the initiation of the procedure are no longer applicable, provided the petition is supported by a report from the trustee.
  • The trustee files a petition for the termination of the procedure due to the completion of the implementation of the plan and the end of his duties.
  • The trustee files a petition for the termination of the procedure due to the lack of quorum necessary for the creditors' voting on the proposal, or that such voting does not take place on the set date.
  • The court refuses to confirm the proposal.
  • The trustee or the creditor files a petition for the termination of the procedure due to the infeasibility of implementing the plan.
  • The trustee files a petition signed by the debtor for the termination of the procedure due to the debtor's intention not to continue management of his business or implementation of the plan.
  • A person with interest requests termination of the procedure due to material violations during the procedure, or due to the debtor's commission of any of the offenses stipulated in this Law during the validity of the procedure.

Regarding the cases in which the court rules to terminate the financial restructuring procedure for small debtors, the court shall order the termination of a financial restructuring procedure if:

  • If the small debtor files a petition for the termination of the procedure because the conditions for the initiation of the procedure are no longer applicable, provided the petition is supported by a report from the trustee.
  • The trustee files a petition for the termination of the procedure due to the completion of the implementation of the plan and the end of his duties.
  • The trustee files a petition for the termination of the procedure due to the lack of quorum necessary for the creditors' voting on the proposal, or that such voting does not take place on the set date.
  • If the court rules the plan null and void.
  • The trustee or the creditor files a petition for the termination of the procedure due to the infeasibility of implementing the plan.
  • The trustee files a petition signed by the small debtor for the termination of the procedure due to the small debtor's intention not to continue management of his business or implementation of the plan.
  • A person with interest requests termination of the procedure due to material violations during the procedure, or due to the small debtor's commission of any of the offenses stipulated in this Law during the validity of the procedure.

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