SAUDI ARABIA Law and Practice Contributed by: Andreas Haberbeck, Derayah LLPC
1.3 Court Filings and Proceedings As of early 2020, most filings and proceedings before Saudi Arabian courts and tribunals have taken place online. Physical hearings before the courts are open to the public, while proceedings before statutory tri- bunals are typically on camera. Under the Commercial Courts Regulation, 2020, pub- lic access to the particulars of a commercial case and the documents filed in it is possible upon payment of a fee, but a party with an interest may apply for an order that proceedings, or parts thereof, are kept confidential. 1.4 Legal Representation in Court Non-Saudis do not have rights of audience before Saudi Arabian courts unless they appear as litigants in person. Until recently, there was no formal require- ment that litigants must be represented by licensed lawyers. Under the Commercial Courts Regulation of 2020, parties involved in litigation must be represented by lawyers, with the exception of small claims and appli- cations for the appointment of custodians, trustees, liquidators, experts, and similar roles. Additionally, a non-lawyer can represent no more than three parties at any given time. Lawyers and their clients may agree on the type of remuneration that suits both parties. Lump-sum fees, retainers, contingency fees, and hourly charges are common. There are no restrictions on third-party fund- ing of lawyers’ fees and other costs in legal proceed- ings. 2.2 Third-Party Funding: Lawsuits There are no restrictions on the types of lawsuits in which a third party may fund a party’s costs. 2.3 Third-Party Funding for Plaintiff and Defendant Third-party funding is available to the plaintiff and the defendant. 2. Litigation Funding 2.1 Third-Party Litigation Funding
Recent Amendments to the Law The last ten years have seen considerable change in the administration of justice in Saudi Arabia, initi- ated by Royal Decree No M/78 of 19 Ramadan 1428 Hejra, corresponding to 1 October 2007, and the Judi- ciary Regulation. The Board of Grievances used to have jurisdiction in commercial disputes, which was transferred to the newly formed Commercial Courts in October 2017, at the same time widening the defi- nition of commercial disputes to include intellectual property disputes. Labour disputes were previously administered by the Ministry of Labour’s Commission for the Settlement of Labour Disputes, whose juris- diction was transferred to the new Labour Courts in October 2018. The enforcement of judgments and arbitration awards has been reformed. The procedures of the Com- mercial Courts were overhauled by the Commercial Courts Regulation, Royal Decree No M/93 of 15 Sha’ban 1441 Hejra, corresponding to 8 April 2020, which entered into force on 16 June 2020. Rules of evidence were consolidated with the Evi- dence Regulation, Royal Decree No M/43 of 26 Juma- da Awwal 1443 Hejra, corresponding to 30 December 2021, which entered into force on 6 July 2022. A major recent change in the law is the creation of the Administrative Enforcement Court under the Board of Grievances Enforcement Regulation, Royal Decree No M/15 of 27 Muharram 1443 Hejra, corresponding to 4 September 2021. The Court became operational on 20 August 2023 and has the power to enforce judg- ments and arbitration awards against or in favour of government agencies. If a government agency confirms that it has taken all necessary steps to satisfy an execution order issued by the court and that non-payment is attributable to the Ministry of Finance, an execution order must be issued against the Ministry of Finance. The Board of Grievances Enforcement Regulation, 2021, empow- ers the Administrative Enforcement Court to impose imprisonment for up to seven years and/or fines on public servants who hinder or delay the enforcement of judgments.
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