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Company Law & Governance

Disputes

Commercial dispute resolution and litigation in Saudi Arabia

Short answer

Most commercial disputes in Saudi Arabia are heard by the commercial courts under the Commercial Courts Law, which took effect in June 2020 and sets a general five-year time limit for bringing claims. Al-Fahal Law Firm, led in disputes by partner Mohammed Al-Fahal, represents companies in negotiation, mediation and court proceedings, including appeals and enforcement.

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Updated

Situations we help with

  • A customer has not paid and is ignoring your demands.
  • A supplier or contractor has failed to perform and you need to recover your losses.
  • Partners or shareholders disagree about control, profits or an exit.
  • You have been sued and need to respond within the court's deadlines.
  • A judgment or settlement has been made but the other side will not comply.

What the work covers

  • Pre-action assessment of the merits, evidence and limitation position
  • Demand letters, negotiation and mediation
  • Claims and defences before the commercial courts, filed through Najiz
  • Partnership and shareholder disputes
  • Banking, securities and insurance-related commercial disputes before the competent committees and courts
  • Appeals to the Court of Appeal and petitions to the Supreme Court
  • Enforcement of judgments through the enforcement courts

How a commercial case works

  1. Assessment. The firm reviews the contract, correspondence and evidence, checks the limitation period and identifies the competent court or committee.
  2. Settlement attempt. A formal demand and, where required or sensible, mediation.
  3. Filing. The claim is filed electronically through Najiz with supporting documents in Arabic.
  4. Hearings and memoranda. Proceedings are mostly in writing, supported by hearings, which may be held remotely. The court may appoint experts on technical or accounting questions.
  5. Judgment and appeal. Judgments can be appealed to the Court of Appeal within the statutory deadline, and in limited cases taken to the Supreme Court.
  6. Enforcement. A final judgment is enforced through the enforcement courts, which can order payment and attach assets.

Evidence wins commercial cases

Saudi commercial courts decide cases largely on documents. The Law of Evidence, in force since 2022, recognises digital evidence such as emails and messages. Businesses that keep signed contracts, delivery records, invoices and correspondence in order are in a much stronger position — and should preserve them as soon as a dispute is likely.

Disputes between partners

Disputes between shareholders or partners are some of the most damaging a company faces because they can freeze decision-making. The firm advises on the rights available under the Companies Law and the company's documents, on claims against managers or directors, and on negotiated exits that keep the business running.

How a consultation works

  1. 1

    Tell us what you need

    Send a short enquiry or call the office. Describe the matter in general terms — no confidential documents yet.

  2. 2

    Conflict check and call-back

    The firm checks that it can act for you, then contacts you to understand the matter.

  3. 3

    Consultation

    You meet a lawyer in Jeddah or online. You get an initial view of your position and options.

  4. 4

    Scope and fees in writing

    If you instruct the firm, you receive the scope of work and fees in writing before work begins.

Questions clients ask

Is there a time limit for commercial claims in Saudi Arabia?
Yes. The Commercial Courts Law provides that, unless another law sets a different period, a claim filed more than five years after the event it concerns will not be heard — unless the defendant acknowledges the claim or the claimant shows an acceptable excuse for the delay. Take advice early if a claim is getting old.
Do I have to try settlement before going to the commercial court?
For many types of commercial claim, the law requires the parties to attempt amicable settlement or mediation before a case can proceed, and the Ministry of Justice offers online mediation. Even where it is not required, a well-prepared settlement attempt often saves time and cost.
What language are Saudi court proceedings in?
Arabic. Foreign-language documents need certified Arabic translations, and foreign parties communicate with the court through their Saudi lawyer.
How are shareholder disputes resolved?
It depends on the articles of association and any shareholder agreement, which may require negotiation, a buy-out mechanism or arbitration. Where they do not, the commercial courts hear disputes between partners and shareholders, including claims against managers and directors.
How long does a commercial case take?
Simple, well-documented claims can be resolved relatively quickly; complex cases with experts and appeals take much longer. The firm will give you a realistic estimate after reviewing the documents.

Official sources

Laws change. We cite the official text so you can check the current version.

This page is general information, not legal advice for your situation.

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Lawyers who handle this work

A question about your company, a contract or a dispute?

Send a short enquiry and a lawyer from Al-Fahal Law Firm in Jeddah will contact you. Please don't send confidential documents until the firm has confirmed it can act for you.

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