SAUDI ARABIA Law and Practice Contributed by: Saud AlRomi, Mostafa Ihab and Saleh Elbadry, Mohammed AlDhabaan & Partners Eversheds Sutherland
Court Fees The provisional attachment petition attracts a fee of SAR1,000. The substantive claim fee is calculated as a percentage of the claim value under the Judicial Fees Law and its Implementing Regulations: 5% for claims below SAR100,000, 4% for claims between SAR100,000 and SAR499,999, 3% for claims between SAR500,000 and SAR999,999 and 2% for claims of SAR1 million and above, capped at SAR1 million, as per Article 3 of the Judicial Fees Law and Article 2 of the Judicial Fees Law Implementing Regulations. Under Article 13 of the Judicial Fees Law, the losing party bears the court fees and petitions. Sanctions for Non-Compliance Under Article 88 of the Enforcement Law, a defend - ant who conceals or smuggles property, refuses to disclose assets or provides false statements faces up to seven years’ imprisonment. This applies equally to legal representatives and employees of private legal persons who obstruct or impede enforcement under Article 88.1 of the Enforcement Law Regulations. Under Article 46 of the Enforcement Law, where a debtor fails to comply with an enforcement order, the enforcement judge may impose, including but not lim - ited to, a travel ban, mandatory asset disclosure and a bar on financial institutions dealing with the debtor. A debtor proven to have dissipated significant assets faces up to 15 years’ imprisonment under Article 90 of the Enforcement Law, which is classified as a serious crime mandating detention. Effect on Third Parties Under Article 20.3 of the Enforcement Law Regula - tions, assets registered in the name of the debtor are subject to attachment even if claimed by a third party, and will not be released until that third party establishes ownership. A garnishee who provides a false declaration or refuses to declare assets faces enforcement against their own property and a dam - ages claim under Article 27.4 of the Enforcement Law Regulations.
no established residence in the Kingdom or that the creditor justifiably fears assets may disappear or be smuggled. Article 24.3 of the Enforcement Law Imple - menting Regulations (the “Enforcement Law Regula - tions”) confirms that all of the debtor’s assets – mov - able and real property – are provisionally attachable. Under Article 28 of the Enforcement Law, provisional attachment requires the debt to be evident and due. Under Article 27 of the Enforcement Law, the attach - ment can also reach funds and assets held by third parties, including banks, with the garnishee required to disclose and deposit into the enforcement court’s account within ten days of notification. In Rem or In Personam Under Article 20 of the Enforcement Law, all of a debtor’s assets are liable to satisfy their debts. Once attachment is ordered, any disposition by the debtor of the attached assets is invalidated. Under Article 20.2 of the Enforcement Law Regulations, this effect runs from the date and time the debtor or garnishee is notified of the attachment order – or from the date of publication where notification is not possible. Under Article 20.3, assets registered in the debtor’s name remain subject to attachment even where a third party claims ownership, and the attachment will not be lifted until that third party establishes their ownership. Receivership Separately, under Article 211 of the Civil Procedure Law, where the right to disputed property is not yet established and an imminent danger is feared if the property remains in the hands of the possessor, the court may place that property under receivership – providing an additional protective tool in fraud cases involving specific assets at risk. Guarantee Under Article 32 of the Enforcement Law, the claimant must provide a guarantee, such as bank guarantee, or a notarised written guarantee from a solvent guarantor covering all rights of the defendant and any damage sustained if the claim is proved invalid. The solvency of the guarantor is assessed at the court’s discretion under Article 32.1 of the Enforcement Law Regula - tions.
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