Positive Impact Approval of Electronic Means in Serving Summons 

The Royal Order approving using electronic means in serving legal summons (e-service) was enacted and became effective from the date of its publication in the Official Gazette on 9 Jumada Al-Awwal 1439 H, corresponding to 26 January 2018. This Royal Order included certain significant provisions and measures. E-service is deemed legally effective and duly served to the addressee if in accordance with the following provisions.Read more


Legal Highlights

Foreign Companies in the Kingdom Obligations and Liabilities   

First:  Foreign companies which are subject to the provisions the Saudi Company Law   
The Saudi Legislature addresses two types of foreign companies in accordance with the provisions of  the Saudi Company Law 1437H/2015: Read more 


Legal Advice

Required Conditions of a Mortgaged Object

Article (2) of the Commercial Mortgaging Law 1424H, as amended by the Council of Ministers Resolution No. (358), dated 25/12/1432H, defines the conditions that must be satisfied on the mortgaged object, as follows:  *(1) Read more


Judicial Highlight and Case Law

Nullity of Judicial Set-off

Judicial set-off is a settlement of two counter debts between the same two persons equal to the lesser of the two countered amounts. There are various forms of set-off, including a set-off  by force of law or a judicial set-off  created by a court.  *(1) Read more



The Saudi Government’s Role In Regulating Insurance Activities

The Saudi government has improved its involvement in insurance activities by strictly exercising control over insurance companies,*(1)  and by increasing its supervision and control over the specialized public and private institutions operating in the Kingdom. Read more


Legal Highlights

Foreign Companies’ Business Activities Requirements and Responsibility 

The provisions of the Saudi Company Law (1437H/2015) applies to two types of  foreign companies.
Type I: The companies which conduct their business and activities within the Kingdom, whether through a branch, office, agency or any other means.  The branch location of a foreign company within the Kingdom shall be deemed to be the domicile of that company as regards its in-Kingdom activities and businesses and is subject to all regulations in force *(5).  Read more


Legal Awareness

Forms of Acceptable Bank Guarantees For Service Contracts and Public Works Projects

The Saudi legislature, pursuant to the Government Tender and Procurement Law, requires the successful bidder to submit a final guarantee within ten (10) days from the date the bid is awarded *(1).  The Law stipulates that the guarantees shall be accepted if they are in compliance with one of the following: Read more


Judicial Perspective and Application

Court Applications Medical Center License Withdrawal Penalty for Violations and Technical Errors 

Article 3 of the Saudi Law of Private Health Institutions requires a private heath institution building compliant with all sanitary conditions and architectural specifications to contain necessary medical and non-medical devices and equipment. The institution must have a medical waste disposal system and infection control system. Read more



Systematic problems arising from exceeding limits of facilities and credit guarantees

The economic liberalization policies in most countries have led to an increase in the number of banks and subsequently an increase in competition. This phenomenon has in its turn led to some banks granting credit without the availability of adequate guarantees and credit worthiness .Read more


Legal Awareness

Cases of revoking financing contract due to lack of transparency

The Saudi legislature, by virtue of Article No. 20 of the Financing Companies Control Regulation, has stated that the chairman and members of the board as well as the company staff, upon concluding any financing contract over which they possess an authority, must declare in writing the following .Read more