SAUDI ARABIA Law and Practice Contributed by: Andreas Haberbeck, Derayah LLPC
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. There is no leg- islation that addresses this issue. 2.7 Time Limit for Obtaining Third-Party Funding There are no time limits by when a party to the litigation should obtain third-party funding. In commercial cases, the claimant must ordi- narily give 15 days’ notice before action to the defendant, without proof of which the claim can- not be filed online. 3.2 Statutes of Limitations Civil Suits Under an Islamic Jurisdiction The concept of the time barring of substantive rights is alien to Islamic law. In practical terms, however, a similar result is reached by a doc- trine broadly equivalent to estoppel by conduct. Therefore, where a claimant has delayed bring- ing action for such length of time and in such circumstances as to indicate an implied waiv- er 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 circum- stances, the lack of action (or of any positive act or indication) amounts to a waiver. Generally speaking, where the defendant relies on no more 3. Initiating a Lawsuit 3.1 Rules on Pre-action Conduct
est 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 requirement that litigants must be repre- sented by licensed lawyers. Under the Commercial Courts Regulation, 2020, litigants before the court must be represented by lawyers, other than in small claims, and applica- tions for the appointment of custodians, trus- tees, liquidators, experts and suchlike persons, but a non-lawyer may not represent more than three parties at any given time. 2. Litigation Funding 2.1 Third-Party Litigation Funding It is open to lawyers and their clients to agree to the type of remuneration that suits both par- ties. Lump sum fees, retainers, contingency fees and hourly charges are common. There are no restrictions on a third-party funding of lawyers’ fees and other costs in legal proceedings. 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. 2.4 Minimum and Maximum Amounts of Third-Party Funding There is no minimum or maximum limit for third- party funding.
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