New Saudi Judicial Costs Law to Reduce Malicious Lawsuits

A view shows vehicles driving on a street in Riyadh, Saudi Arabia February 16, 2021. REUTERS/Ahmed Yosri/File Photo
A view shows vehicles driving on a street in Riyadh, Saudi Arabia February 16, 2021. REUTERS/Ahmed Yosri/File Photo
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New Saudi Judicial Costs Law to Reduce Malicious Lawsuits

A view shows vehicles driving on a street in Riyadh, Saudi Arabia February 16, 2021. REUTERS/Ahmed Yosri/File Photo
A view shows vehicles driving on a street in Riyadh, Saudi Arabia February 16, 2021. REUTERS/Ahmed Yosri/File Photo

Saudi Arabia has started implementing new legislation for its justice system to improve judicial services and develop courts.

The new Judicial Costs Law, approved by the Council of Ministers, will reduce malicious lawsuits, encourage reconciliation between litigants, and promote documentation of transactions and contracts.

There will be no court costs for lawsuits related to divorce, alimony, and child’s custody.

There will be free litigation if it is a right guaranteed to all parties involved in cases that are not subject to the new law.

The idea of imposing fees is based on eliminating disparities between judicial costs and the principle of free litigation. The law also aims to contribute to raising the performance level of courts and bring down the number of malicious lawsuits.

There are provisions in the law under which the loser in the lawsuit shall bear the costs of litigation. The provisions of the law will be applicable to all lawsuits and pleas filed in the courts.

There will be exemption for five types of lawsuits. They are general criminal lawsuits and requests related to them; lawsuits and requests related to the execution of judicial verdicts; lawsuits examined by the Civil Status Courts such as divorce, alimony and custody (of children); lawsuits and requests that are within the jurisdiction of the administrative courts established to deal with state agencies, in addition to the suits related to termination of court proceedings.

The law ensures that judicial costs do not exceed SAR 1 million, taking into account of the effectiveness of the amount spent in achieving the objectives of the law.

The law also exempts from payment of judicial costs in a number of occasions, such as prisoners and detainees at the time they are entitled to judicial costs in financial cases that are nothing to do with criminal cases filed either by them or against them; plea for appeal if the court orders to review an appealed judgment, in addition to the request for cassation if it was decided to return the case to the court that issued the judgment, in the event of objecting the verdict.

Those who are exempted from the law included the parties involved in the cases that end in conciliation before the first session is adjourned, as well as claims for special rights that are filed in penal cases if they end in conciliation, in addition to the cases in which the arbitrators’ judgment is issued.

The law clarified that there will be a reduction of costs to one-fourth in the event of reconciliation, in addition to refunding the judicial costs paid when it becomes clear that it was not obligatory for them to make the payment.

According to the law, failure to pay the judicial costs does not prevent the court either from hearing the case or continuing with procedures including issuing of the verdict, and their collection shall be in accordance with the procedures and rules specified by the regulation.

The collected judicial costs shall be deposited in a special account of the Ministry of Finance, and that will be set aside to spend on projects to develop the judiciary and improve the performance of the judicial facility.



Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
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Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA

The Saudi Export-Import Bank (Saudi EXIM) hosted the Berne Union's Country Risk Specialist Meeting, providing a platform for experts and thought leaders in risk management from the export credit community.
At the meeting, which took place from November 19 to 21 in Riyadh, the attendees exchanged best practices to better protect the industry amid shifting global dynamics.
According to a statement issued by the Saudi EXIM on Saturday, the event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions.
By strengthening institutional resilience, the industry is ready to turn global economic challenges into opportunities for economic prosperity, said the statement, adding that it played a crucial role in advancing global trade, strengthening international cooperation, and developing credit solutions that empower export activities while controlling risk, SPA reported.
According to the statement, discussions centered on critical risks impacting international trade and the global economy, such as debt sustainability and geopolitical tensions, along with innovative approaches to risk modelling. Participants also explored the global shifts in infrastructure, energy and critical minerals sectors, and were given an overview of Saudi Arabia's National Industrial Strategy, which focuses on economic diversification through investments, developing new sectors, and promoting local industries.
In his opening remarks, Saudi EXIM CEO Eng. Saad bin Abdulaziz Al-Khalb said the meeting is an ideal platform to address risks impacting global economic decision making.
He stated: "Through such meetings, we can turn challenges into strategic opportunities and enhance our resilience in an ever-changing world. At Saudi EXIM, we remain committed to enabling companies by offering expert financial and non-financial solutions to navigate risks effectively."
He also said that "at Saudi EXIM, we place great emphasis on risk management. In alignment with the main objective of this meeting, I am pleased to announce the completion of our independent country risk model, which is supported by advanced modelling tools and machine learning. This model will provide country ratings and predictions of default risks. We look forward to collaborating with our partners in other export credit agencies to exchange knowledge and expertise, and to strengthening our risk management functions with greater responsibility and effectiveness."
Associate Director at Berne Union Eve Hall said: "The global risk landscape today is highly volatile and highly interconnected. As we navigate our way around the ongoing transformations connected to energy transition and shifting industrial strategies, the traditional concept of 'country risk' is becoming increasingly complex. Our industry excels at understanding, quantifying and pricing these risks, and by bringing together this community of experts for technical exchange the Berne Union is able to help support the development of the industry as a whole. The initiatives announced by our colleagues at Saudi EXIM, making use of new technology in risk analysis, provide a fantastic example of where collaboration in this field can be effectively applied."
The statement disclosed that Saudi EXIM's membership in Berne represents a significant strategic step, and is consistent with the Kingdom's commitment to expanding collaboration and integration in the global economy.
This is achieved by building partnerships with leading institutions to address the challenges facing the export credit sector. It also aligns with the bank's goal of developing the export of national products and services through partnerships with national and international financial and funding organizations.
Berne Union works with global trade organizations to encourage the adoption of best practices in export credit insurance, and to cooperate in maintaining the stability of global trade.
Saudi EXIM, a development bank under the National Development Fund, contributes to diversifying the Kingdom's economic base by improving the efficiency of non-oil export ecosystems, bridging financial gaps, and minimizing export risks. This plays a role in helping the non-oil national economy grow, in line with Vision 2030.