SAUDI ARABIA Law and Practice Contributed by: Andreas Haberbeck, Derayah LLPC
than pure inaction, the number of years would have to be in double digits. Time bars are recognised under Saudi Arabian statute, but only as procedural devices and not as substantive time bars. Moreover, these time bars are specific 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 under the court’s jurisdiction 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, corre- sponding 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 Regula- tion, 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 presentation. • Under the Civil Procedure Rules of the Board of Grievances, claims for judicial review of administrative 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 Commit- tees 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, corresponding 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 Mari- time 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 introduced the following new time bars. • Voidable contracts due to lack of capacity or duress: one year from attaining capacity or end of duress. • Voidable contracts due to mistake, fraud or undue influence: one year from knowledge of reason for invalidity, or ten years from the date of contract. • Void contracts, such as due to illegality: ten years from the date of contract. • Tort claims: three years from date of knowl- edge of the event, or ten years from the date of event. • Unjust enrichment or mistaken payment: three years from knowledge of right, or ten years from the event. • Unenforceability of disposition: one year from knowledge of right, or ten years from the date of disposition. • Periodically renewing rights, such as rent on land, wages and regular salaries and the like, with the exception of cases where the right is a yield owed by the person in possession acting in bad faith, or a yield that the overseer
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