Royal Decree No. (M/93) dated 15/8/1441 AH
By the grace of God Almighty
We Salman bin Abdulaziz Al Saud
King of the Kingdom of Saudi Arabia
Based onArticle (Seventy) of the Basic Law of Governance, issued by Royal Order No. (A/90) dated 27/8/1412 AH.
Based onArticle (Twenty) of the Law of the Council of Ministers, issued by Royal Order No. (A/13) dated 3/3/1414 AH.
Based onArticle (Eighteen) of the Law of the Shura Council, issued by Royal Order No. (A/91) dated 27/8/1412 AH.
After reviewing the Shura Council Resolution No. (28/124) dated 14/7/1441 AH
After reviewing the Council of Ministers Resolution No. (511) dated 14/8/1441 AH.
We decree the following:
First: Approval of the Law of Commercial Courts, in the attached form.
Second: Commercial circuits shall be established by a decision of the Supreme Judicial Council in the general courts in regions and governorates where commercial courts have not been established in accordance with the provisions of the law referred to in item (First) above, provided that appeals against judgments issued by those circuits shall be before the appellate circuits in the nearest commercial court, until commercial courts are established therein.
Third: Cancellation ofArticle (Thirty-Five) of the Law of Civil Procedure, issued by Royal Decree No. (M/1) dated 22/1/1435 AH.
Fourth: The provisions of the law - referred to in item (First) above - shall apply to commercial lawsuits that have not been adjudicated and procedures that have not been completed before its effective date, except for the following:
1- The articles amending jurisdiction with respect to lawsuits filed before the law’s effective date.
2- The articles amending deadlines with respect to deadlines that began before the law’s effective date.
3- The provisions establishing or canceling methods of objection under the law with respect to final judgments issued before the law’s effective date.
Fifth: His Highness the Deputy Prime Minister, the Ministers, and the heads of the concerned independent bodies - each within his jurisdiction - shall implement this decree.
Council of Ministers Resolution No. 511 dated 14/08/1441 AH
The Council of Ministers
After reviewing the correspondence received from the Royal Court No. 44721 dated 21/7/1441 AH, including the letter of His Excellency the Minister of Justice No. 741506/40 dated 27/2/1440 AH, regarding the draft Law of Commercial Courts.
After reviewing the draft law referred to.
After reviewingthe Law of the Judiciary, issued by Royal Decree No. (M/78) dated 19/9/1428 AH.
After reviewingthe Law of Civil Procedure, issued by Royal Decree No. (M/1) dated 22/1/1435 AH, amended by Royal Decree No. (M/38) dated 30/3/1441 AH.
After reviewing the minutes No. (533) dated 21/4/1441 AH, and memoranda No. (408) dated 21/5/1441 AH, and No. (600) dated 9/8/1441 AH prepared by the Bureau of Experts at the Council of Ministers.
After considering the Shura Council Resolution No. (124/28) dated 14/7/1441 AH.
After reviewing the recommendation of the General Committee of the Council of Ministers No. (5821) dated 13/8/1441 AH.
It is decided as follows:
First: Approval of the Law of Commercial Courts, in the attached form.
Second: Commercial circuits shall be established by a decision of the Supreme Judicial Council in the general courts in regions and governorates where commercial courts have not been established in accordance with the provisions of the law referred to in item (First) above, provided that appeals against judgments issued by those circuits shall be before the appellate circuits in the nearest commercial court, until commercial courts are established therein.
Third: Cancellation ofArticle (Thirty-Five) of the Law of Civil Procedure, issued by Royal Decree No. (M/1) dated 22/1/1435 AH.
Fourth: The provisions of the law - referred to in item (First) above - shall apply to commercial lawsuits that have not been adjudicated and procedures that have not been completed before its effective date, except for the following:
1- The articles amending jurisdiction with respect to lawsuits filed before the law’s effective date.
2- The articles amending deadlines with respect to deadlines that began before the law’s effective date.
3- The provisions establishing or canceling methods of objection under the law with respect to final judgments issued before the law’s effective date.
A draft Royal Decree has been prepared accordingly, its text is attached hereto.
Prime Minister
Law of Commercial Courts and its Executive Regulation
Chapter 1: General Provisions
Article 1
In this Law, the following terms shall have the meanings assigned thereto, unless the context requires otherwise:
Law: Law of Commercial Courts.
Regulations: Implementing regulations of this Law.
Council: Supreme Judicial Council.
Court: Commercial Court.
Ministry: Ministry of Justice.
Minister: Minister of Justice.
Party: A party to a lawsuit or claim.
Article 2
Without prejudice to the provisions of commercial laws and international conventions to which the Kingdom is party, the provisions of this Law and its Regulations shall apply to the commercial court and to cases under its jurisdiction.
Article 3
The Supreme Judicial Council shall, in accordance with its jurisdiction, consider the following:
1. Establishing commercial courts in various provinces and counties of the Kingdom as needed, provided that each court comprises appellate circuits and circuits of first instance.
2. Forming appellate circuits and circuits of first instance within commercial courts to be composed of three judges; however, circuits may be composed of a single judge in accordance with this Law.
Article 4
1. The chief judge of the commercial court shall oversee the court and name the judges of its circuits and its staff in accordance with rules determined by the Council.
2. Selection of competent judicial aides shall be in accordance with legal procedures. The commercial court may recruit Sharia and law graduates or their equivalent pursuant to rules issued by the Minister in coordination with the Minister of Human Resources and Social Development.
3. The Regulations shall determine the responsibilities and tasks of judicial aides.
Article 5
Without prejudice to the independence of the judiciary and due process, the commercial court may seek the assistance of the private sector to carry out:
1. mediation and reconciliation;
2. notification and service of process;
3. registry of cases and claims and delivery of court judgments;
4. managing hearing rooms;
5. exchange of memoranda and access to documents;
6. expert-related procedures;
7. documenting evidentiary procedures; and
8. managing specialized departments of the commercial court. The Regulations shall specify the procedures for the implementation of this Article.
Article 6
Notwithstanding the provisions of this Law and the Law of Civil Procedure, and without prejudice to public policy and the rules of justice, the parties to a commercial transaction, if both are merchants, may agree on specific litigation procedures and other litigation-related matters.
Article 7
Any of the procedures stipulated in this Law may be carried out via electronic means, including filing, registering, and hearing claims and petitions, and pleading, exchanging memorandums, rendering judgments, and filing appeals. The Regulations shall determine the procedures for enforcing the provisions of this Article, including the provisions related to the time frame for such procedures.
Article 8
The Regulations shall specify the following:
1. Mediation and reconciliation procedures, including cases that must be preceded by mediation or reconciliation, provided that such procedures do not exceed 30 days from the date of initiation, unless the parties agree on a longer period of time.
2. Class action procedures, which shall include determining these claims and consideration and ruling procedures.
3. Procedures for small claims, which shall include determining these claims and consideration and ruling procedures.