SAUDI ARABIA Law and Practice Contributed by: Andreas Haberbeck, Derayah LLPC
11. Costs 11.1 Responsibility for Paying the Costs of Litigation Until 2022 there were no charges for using the courts. This was changed with the Court Fees Regulation, Royal Decree No M/16 of 30 Muhar- ram 1443 Hejra, corresponding to 7 September 2021, which entered into force on 16 March 2022. Court fees are calculated on a sliding scale, as follows. • 5% for claims up to USD26,667. • 4% for claims up to USD133,333. • 3% for claims up to USD266,667. • 2% for claims above USD266,666, with an upper limit for the fees of USD266,666. Accordingly, once the claim value has reached USD13,333,333, the court fees stay at USD266,666, no matter how big the claim amount is. It is within the court’s discretion to award legal costs to a successful litigant. In the past this discretion was rarely exercised and, when it was, the sums were modest and well below the cost of engaging a commercial law firm. More recently, the Commercial Courts have been more willing to award costs to successful claimants. 11.2 Factors Considered When Awarding Costs Given that the awarding of costs is discretionary, there are no clear parameters that dictate how awards of costs are calculated. 11.3 Interest Awarded on Costs Saudi Arabian courts do not award interest.
cation, the judgment and case file without further argument from the parties and issues a decision making the judgment final and enforceable. Where the appellate tribunal considers that the application has merit, it may refer the case back to the court or tribunal of first instance, with a request to adduce additional evidence or recon- sider the facts in light of directions given by the appellate tribunal. In such situations, the court or tribunal of first instance usually invites fur- ther argument from the parties and issues a new judgment. There have been several instances of proceed- ings where the process was repeated three times before a final and enforceable judgment was issued. The appellate tribunal can also take over the handling of the case and make its own ruling. 10.4 Issues Considered by the Appeal Court at an Appeal The Court of Appeal can consider both issues of law and issues of fact but will ordinarily remit the case to the court at first instance where further facts must be ascertained. 10.5 Court-Imposed Conditions on Granting an Appeal There are no rules that provide for the Court of Appeal to impose any conditions on granting an appeal. 10.6 Powers of the Appellate Court After an Appeal Hearing Judgments which have been appealed are not final and enforceable until the Court of Appeal has confirmed the first instance judgment.
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