SAUDI ARABIA Law and Practice Contributed by: Andreas Haberbeck, Derayah LLPC
8.4 Setting Aside Settlement Agreements If a settlement agreement is obtained fraudu- lently or without authority, it can be set aside by the court. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant The Civil Transactions Regulation, 2023, has introduced major changes to the remedies that are available in Saudi Arabian legal proceedings. Article 136 of the Civil Transactions Regulation, 2023, provides that compensation shall be such as makes good the harm in full, by restoration of the injured party to the position they were in, or could have been in, but for the occurrence of the harm. Article 137 of the Civil Transactions Regula- tion, 2023, provides that one can claim for lost earnings, which opens the door to loss of profit claims. Under Article 138 of the Civil Transac- tions Regulation, 2023, compensation for moral damage may be claimed, which includes sen- sory or mental suffering, consequent upon preju- dice to the claimant’s body or liberty or dignity or reputation or social standing. Breaches of obligations may result in orders for specific per- formances or monetary compensation if specific performances are not possible. 9.2 Rules Regarding Damages In cases of death or accidental personal injury, the responsible party is liable to pay blood mon- ey (Arabic: “diyah” in case of death, and “arsh” in personal injury cases) as compensation to the victim or the victim’s heirs. The amount of blood money payable for accidental death was fixed early in the history of Islam at 100 camels, with
A judge can issue a judgment whenever they are satisfied that both parties have presented their case fully. This is usually done in the course of a hearing and a written judgment is issued a few weeks later. 7.8 General Timeframes for Proceedings Before the COVID-19 crisis and the move to electronic proceedings, legal proceedings typi- cally took from 18 to 30 months to reach a final judgment. This has not changed with the intro- duction of electronic litigation, which proceeds at the same pace as physical hearings used to take. It is open to the parties to settle a dispute at any time without the court’s approval, but court proceedings will only be formally discontinued if the claimant withdraws their complaint or the settlement is recorded before the court. 8.2 Settlement of Lawsuits and Confidentiality Given that court proceedings before courts and tribunals other than the Commercial Courts are treated as confidential, settlements of lawsuits before them also remain confidential. A settle- ment that is recorded in the records of the Com- mercial Courts is not confidential, unless one or both parties can persuade the court to treat this information as confidential. 8.3 Enforcement of Settlement Agreements A settlement agreement made in the course of legal proceedings has the effect of a judgment. If a settlement agreement is notarised or formally sealed, it can be enforced like a judgment. 8. Settlement 8.1 Court Approval
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