SAUDI ARABIA Law and Practice Contributed by: Andreas Haberbeck, Derayah LLPC
2.4 Minimum and Maximum Amounts of Third-Party Funding There is no minimum or maximum limit for third-party funding. 2.5 Types of Costs Considered Under Third- Party Funding The costs considered are a commercial issue. 2.6 Contingency Fees Contingency fees are permitted. No legislation addresses this issue. 2.7 Time Limit for Obtaining Third-Party Funding There are no time limits by which a party to the litiga- tion should obtain third-party funding. In commercial cases, the claimant must ordinarily give 15 days’ notice before action to the defendant, with- out proof of which the claim cannot be filed online. 3.2 Statutes of Limitations The concept of the time barring of substantive rights is alien to Islamic law. In practical terms, however, a sim- ilar result is reached by a doctrine broadly equivalent to estoppel by conduct. Therefore, where a claimant has delayed bringing action for such a length of time and in such circumstances as to indicate an implied waiver of the claim, the law will hold them to their implied waiver and bar their remedy. No precise set of rules exists as to when this doctrine may be invoked. Each case will turn on its own facts and the court’s assessment of whether, in the circumstances, the lack of action (or of any positive act or indication) amounts to a waiver. Generally speaking, where the defendant relies on no more than pure inaction, the number of years would have to be in double digits. Time bars are recognised under Saudi Arabian stat- ute, but only as procedural devices, not as substan- tive time bars. Moreover, these time bars are specific 3. Initiating a Lawsuit 3.1 Rules on Pre-Action Conduct
rather than general. Time is calculated with reference to the Hejra calendar. Examples include the following. • Under the Commercial Courts Regulation, 2020, claims in commercial cases within the court’s juris- diction are time-barred after five years from when the cause of action accrued. • Under the Labour Regulation, Royal Decree No M/51 of 23 Sha’ban 1426 Hejra, corresponding to 27 September 2005, employment disputes must be initiated within not more than 12 months from the date on which the employment relationship ended. • Under the Negotiable Instruments Regulation, Royal Decree No 37 of 11 Shawwal 1383 Hejra, corresponding to 22 February 1964, claims under dishonoured cheques must be initiated within six months from the expiry of the period for presenta- tion. • Under the Civil Procedure Rules of the Board of Grievances, claims for judicial review of adminis- trative action must be initiated before the Board of Grievances within 60 days from the concerned governmental department’s ruling. • Under the Procedure Rules of the Committees for Adjudication of Insurance-related Disputes and Violations, Council of Ministers Resolution No 190 of 9 Jumada Awwal 1435 Hejra, corresponding to 10 March 2014, actions on insurance disputes may not be heard after the expiration of five Hejra years from the date of entitlement to the amounts the subject matter of the claim. • The Capital Market Regulation, Royal Decree No M/30 of 2 Jumada Thani 1424 Hejra, correspond- ing to 31 July 2003, imposes a five-year time bar on certain claims before the Committee for the Resolution of Securities Disputes. • Most claims under the Commercial Maritime Regulation, Royal Decree No M/33 of 5 Rabi Thani 1440 Hejra, corresponding to 12 December 2018, become time-barred after two years, including claims arising out of carriage of goods by sea, charterparties, salvage, collisions, personal injury and marine insurance. The Civil Transactions Regulation, 2023, has intro- duced the following new time bars.
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