Saudi Arabia’s economic transformation under Vision 2030 has attracted investors and businesses from around the world. As commercial activity grows, understanding the commercial court procedures in Saudi Arabia becomes essential for companies operating in the Kingdom. Regardless of whether you are a local entrepreneur, an investor, or a legal professional, understanding how the commercial judicial system works can significantly help you protect your rights and resolve disputes effectively.
This article explains the step-by-step procedures of the Saudi commercial courts, highlighting their structure, the types of cases they handle, and how businesses can navigate them efficiently.
Commercial Court Procedures in Saudi
What Are Commercial Courts in Saudi Arabia?
Commercial courts in Saudi Arabia are specialized judicial bodies that handle disputes related to business and commercial matters. The Kingdom established these courts to promote a fair, fast, and transparent business environment, aligning with international legal standards.
The Ministry of Justice supervises these courts and ensures that their procedures remain efficient and consistent with the Saudi Commercial Courts Law.
Types of Cases Handled by Commercial Courts
Commercial courts handle a wide range of disputes. Specifically, these include, but are not limited to:
- Contract disputes between businesses
- In particular, company-related conflicts (e.g., shareholder disputes)
- Commercial agency or franchise disputes
- Trade and business transactions
- Bankruptcy and insolvency cases
- E-commerce disputes
Additionally, these courts also hear cases involving international commercial contracts when one of the parties operates in Saudi Arabia.
Jurisdiction of Commercial Courts
Before filing a lawsuit, parties must first determine whether the commercial court has jurisdiction over the case. Typically, a commercial court has jurisdiction if:
- The case involves two businesses or commercial entities
- The dispute arises from a commercial contract
- The matter concerns commercial transactions or business relationships
Moreover, the Saudi judiciary also allows for electronic registration of businesses, which further helps the courts verify the commercial nature of the dispute.
Step-by-Step Procedure of Filing a Commercial Case
1. Attempt to Resolve the Dispute Amicably
Before approaching the court, parties are encouraged to resolve the matter through negotiation, mediation, or arbitration. In some cases, prior attempts at dispute resolution are legally required. Businesses often include arbitration clauses in contracts to avoid litigation.
2. Submit the Case Through the Najiz Portal
Saudi Arabia has digitized its legal procedures through the Najiz Portal (https://najiz.sa), an online platform operated by the Ministry of Justice. Parties can file commercial claims electronically, attach evidence, and track the progress of their case.
To submit a case:
- Log into the Najiz portal
- Choose “Commercial Courts”
- Fill in the claim form
- Attach supporting documents (contracts, invoices, correspondences)
- Pay the applicable court fees electronically
This step ensures faster processing and reduces the need for physical visits.
3. Court Reviews and Schedules the First Hearing
Once the court receives the case file, it reviews the documents and schedules the first hearing. The court notifies both parties electronically. The defendant has a legal obligation to respond within a specific timeframe, usually within 15 days from the date of notification.
4. Present Evidence and Arguments
During the hearing, both parties must present their arguments, submit further evidence if required, and respond to the opposing party’s claims. Moreover, the court provides equal opportunity to both sides and, if necessary, may appoint experts in cases that involve technical or financial issues.
Courts now use video conferencing for hearings when necessary, especially for international parties.
5. Court Issues a Judgment
After reviewing all the documents and hearing the arguments, the court issues a written judgment. The decision outlines the legal reasoning and final ruling. The judgment is then uploaded to the Najiz platform and sent to both parties electronically.
The losing party must comply with the judgment or may face enforcement measures.
6. Appeal Process
If a party disagrees with the judgment, they can, as a next step, file an appeal to the Commercial Court of Appeal within 30 days from the date of judgment issuance. Unlike the initial trial, the appeal process focuses on reviewing the legal reasoning rather than re-examining all the facts.
In cases involving substantial value or legal complexity, the matter may reach the Supreme Court, which serves as the final level of judicial review in Saudi Arabia.
Enforcement of Commercial Judgments
Once a commercial court issues a final judgment, the winning party may proceed with enforcement. The Enforcement Court carries out the court’s decision by:
- Freezing the debtor’s bank accounts
- Seizing assets or property
- Preventing travel of the debtor
- Blacklisting companies or executives from government contracts
To enhance efficiency, Saudi Arabia has introduced fast-track enforcement through Najiz, which significantly shortens the enforcement timeline.
Role of Lawyers in Commercial Litigation
Hiring a licensed Saudi lawyer is highly recommended. Legal professionals assist businesses by:
- Drafting legal documents and statements of claim
- Providing strategic advice
- Ensuring proper submission of evidence
- Representing the client before the court
- Navigating Arabic legal terminology and Saudi regulations
In addition, lawyers help parties avoid procedural mistakes that may delay the resolution of the case.
Transition to Digital Judiciary
The Saudi Ministry of Justice has taken significant steps toward digital transformation. Commercial courts have embraced modern technologies to streamline litigation:
- E-filing of lawsuits and documents
- Online hearing scheduling
- Remote video hearings
- Digital signatures and notifications
- Online access to case files and judgments
As a result, this digital infrastructure not only saves time but also enhances transparency and legal efficiency.
Benefits of Saudi Commercial Courts for Investors
Saudi Arabia’s commercial judicial reforms provide several advantages to local and foreign investors:
- Specialized judiciary: Judges with expertise in commercial law handle the cases
- Transparency: Public access to legal decisions through Najiz
- Efficiency: Faster resolution of disputes
- Legal clarity: Clear procedures governed by the Commercial Courts Law
- Furthermore, digital access ensures ease of use for both domestic and international businesses.
These factors make the Saudi legal environment more attractive to international investors and encourage confidence in the business ecosystem.
Conclusion: Navigating the Saudi Commercial Legal System
Understanding commercial court procedures in Saudi Arabia is crucial for businesses that want to operate effectively and legally in the Kingdom. From filing a lawsuit through the Najiz portal to enforcing a final judgment, the system is designed to be accessible, transparent, and business-friendly.
Saudi Arabian courts system
As Saudi Arabia continues to modernize its legal and commercial infrastructure, businesses that stay informed about legal procedures gain a significant competitive advantage. Whether you are resolving a contractual dispute or seeking to enforce a commercial agreement, having a clear understanding of how to work within the Saudi legal system ultimately helps you protect your interests and grow your business with confidence.
