The Saudi Commercial Courts Law (Nizam Al-Mahakim Al-Tijariyah, نظام المحاكم التجارية) sets out which cases the commercial courts in Saudi Arabia hear, how a commercial claim is filed, and the procedures that apply to it. It was issued by Royal Decree No. (M/93) dated 15/8/1441H, followed by its Implementing Regulations. For any trader or company, the key point is that a commercial claim has conditions and steps that must be met before it is filed, and skipping them can lead to the claim not being accepted. Here we explain the main points in plain language.
What does the Commercial Court hear?
- Disputes between traders arising from their original or ancillary commercial activities.
- Claims brought against a trader in commercial contract disputes, where the value of the original claim exceeds the threshold set by the Implementing Regulations.
- Disputes between partners in companies, and liability claims against managers and board members.
- Bankruptcy, intellectual property and other commercial-law cases, as referred to it by law.
Employment disputes go to the Labor Court, and consumer disputes may have a different route. Read Which court handles my case?.
Steps before filing a commercial claim
| Step | Why it matters |
|---|---|
| Prior notice to the defendant | For certain types of claim, the law requires you to notify the other party of your claim a period of time before filing. Failing to do so may prevent the claim from being accepted |
| Attempting settlement | Some claims go through settlement or conciliation before the court hears them. Read Amicable settlement |
| Gathering documents and submitting them with the statement of claim | Commercial claims rely heavily on the documents submitted from the start |
| Observing the limitation period | Some commercial claims have a period after which they will not be heard, unless there is an excuse the law accepts |
Time periods and financial thresholds are set by the Implementing Regulations and may be amended, so check the current official text before filing a claim.
For foreign companies and expatriate traders: proceedings and filings are in Arabic, so contracts, invoices and correspondence in other languages will need an Arabic translation. Our team can advise you in English.
What sets commercial court procedures apart
- Electronic procedures: registration, notification and the exchange of submissions are mostly done electronically.
- Small claims: lower-value claims follow faster procedures.
- Evidence and expertise: the court may call on experts and accountants for technical and financial questions.
- Objection: by appeal to the Commercial Court of Appeal within the statutory periods.
Frequently asked questions
I am an individual, not a trader. Is my dispute with a company commercial?
Not necessarily. What counts is the nature of the dispute and the status of the parties as defined by the law, and some disputes between individuals and companies are heard by other courts.
Can we agree on arbitration instead of the Commercial Court?
Yes, if the contract contains a valid arbitration clause or the parties agree on it later. Read Commercial arbitration.
I hold a promissory note. Do I file a commercial claim?
A promissory note is an enforceable instrument that, in many cases, can be submitted directly to the Enforcement Court. Read Promissory notes.
Have a commercial dispute?
The Usus Law Firm team handles commercial cases and commercial claims between companies, from prior notice through to judgment and enforcement, in Riyadh and Tabuk.
This article is general legal information and is not a substitute for advice on your specific case. Court proceedings in Saudi Arabia are in Arabic; the official Arabic text of each law prevails.
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