Saudi Arabia’s Official Gazette published the new Enforcement Law details, recently approved by the Cabinet. The law replaces the previous enforcement system issued under Royal Decree No. M/53 (2012) and its amendments.
The law will come into force 180 days after publication.
It does not affect the continued application of a prior decree exempting military personnel actively engaged in combat from travel bans and imprisonment.
The new framework consists of 65 articles. It requires the Minister of Justice to issue implementing regulations within 180 days, to take effect alongside the law.
Government entities, including those overseeing or registering assets, must comply with court enforcement orders within three business days unless otherwise specified.
Enforcement actions may only be carried out based on a valid enforceable instrument for a due and specific claim. These include final court rulings, arbitral awards, notarized settlement agreements, registered promissory notes, cheques, notarized contracts, and certain foreign judgments recognized under the law.
If a debtor fails to comply after enforcement proceedings begin, courts may order asset tracing upon request, particularly if there are indications of asset concealment or transfer. Seizure of assets is limited to the value of the claim unless the asset is indivisible.
The law also allows debtors to voluntarily sell assets under court supervision to meet obligations. Courts may impose daily fines of up to SAR 10,000 for non-compliance, subject to a cap set by regulations, with proceeds paid to the state treasury. Fines may be reduced or waived if compliance is achieved.
Saudi Arabia’s Official Gazette published the new Enforcement Law details, recently approved by the Cabinet. The law replaces the previous enforcement system issued under Royal Decree No. M/53 (2012) and its amendments.
The law will come into force 180 days after publication.
It does not affect the continued application of a prior decree exempting military personnel actively engaged in combat from travel bans and imprisonment.
The new framework consists of 65 articles. It requires the Minister of Justice to issue implementing regulations within 180 days, to take effect alongside the law.
Government entities, including those overseeing or registering assets, must comply with court enforcement orders within three business days unless otherwise specified.
Enforcement actions may only be carried out based on a valid enforceable instrument for a due and specific claim. These include final court rulings, arbitral awards, notarized settlement agreements, registered promissory notes, cheques, notarized contracts, and certain foreign judgments recognized under the law.
If a debtor fails to comply after enforcement proceedings begin, courts may order asset tracing upon request, particularly if there are indications of asset concealment or transfer. Seizure of assets is limited to the value of the claim unless the asset is indivisible.
The law also allows debtors to voluntarily sell assets under court supervision to meet obligations. Courts may impose daily fines of up to SAR 10,000 for non-compliance, subject to a cap set by regulations, with proceeds paid to the state treasury. Fines may be reduced or waived if compliance is achieved.
