Saudi Arabia has rapidly modernized its legal framework to support local and foreign businesses. A major milestone in this transformation was the establishment of Saudi Commercial Courts in 2017 as part of Vision 2030.
These specialized courts are designed to handle commercial disputes efficiently, transparently, and digitally bringing Saudi Arabia closer to international judicial standards. For investors, entrepreneurs, and companies operating in the Kingdom, understanding how these courts work is critical to managing risk and protecting business interests
Understanding Saudi Commercial …
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What Are Saudi Commercial Courts?
Saudi Commercial Courts are specialized judicial bodies that resolve disputes arising from commercial and business activities. They operate under the Commercial Courts Law of 2020, which aims to:
- Speed up dispute resolution
- Enhance legal certainty for investors
- Improve enforcement of commercial rights
These courts focus exclusively on business-related disputes, separating them from general Sharia courts to ensure expertise-driven judgments
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Court Structure of Saudi Commercial Courts
Saudi Commercial Courts operate under a three-tier judicial structure, ensuring fairness and appeal rights:
1. Courts of First Instance
Located in major commercial cities such as Riyadh, Jeddah, and Dammam
- Handle initial hearings and evidence review
- Circuits usually consist of three judges
- Single-judge circuits handle summary or urgent matters
2. Courts of Appeal
Review both facts and legal reasoning
- Parties must file appeals within 30 days of judgment
3. Supreme Court – Commercial Circuit
- Reviews points of law only, not facts
- Ensures consistent application of commercial law across the Kingdom
Understanding Saudi Commercial …
Jurisdiction of Saudi Commercial Courts
These courts have broad authority over commercial matters, including:
- Disputes between merchants and companies
- Commercial contracts and trade transactions
- Company law and e-Companies Law violations
- Banking and financing disputes
- Bankruptcy and insolvency cases
- Intellectual Property (IP) disputes
- Partnerships such as Mudaraba
- Claims exceeding SAR 100,000 against merchants
Territorial Jurisdiction
- Generally based on the defendant’s domicile
- Alternatively, the place of contract execution
- Parties may agree contractually on jurisdiction
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Commercial Dispute Resolution Process in Saudi Arabia
Saudi Arabia follows a structured, digital-first approach to dispute resolution.
1. Mandatory Mediation
Before litigation, certain disputes must undergo mediation:
- Conducted via the Taradhi platform
- Duration: up to 30 days
- Successful settlements are legally enforceable as court judgments
This step reduces litigation time and encourages amicable resolutions
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2. Litigation Process
If mediation fails, the litigation process includes:
- Electronic filing through the Najiz portal
- Exchange of pleadings online
- Virtual court hearings
- Acceptance of digital evidence
- Expert opinions when required
- Judgments issued within statutory timelines
Appeals must be submitted within 30 days of judgment issuance
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Digital Transformation & Key Reforms
Saudi Commercial Courts are among the most digitally advanced courts in the region, featuring:
- Fully online case filing and tracking
- Virtual hearings and electronic evidence
- Digitally enforceable judgments
- Ability for parties to agree on custom procedures
- Fines up to SAR 10,000 for procedural abuse or disruptions
These reforms significantly reduce delays and align Saudi Arabia with global best practices in commercial justice
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Why Saudi Commercial Courts Matter for Businesses
For businesses operating in Saudi Arabia, these courts offer:
- Faster dispute resolution
- Investor-friendly legal environment
- Predictable enforcement of contracts
- Reduced litigation risk
- Confidence for foreign investors entering the Saudi market
This framework directly supports Saudi Arabia’s ambition to become a global business hub under Vision 2030.
Conclusion:
Understanding these courts is no longer optional—it’s a strategic necessity for companies looking to grow, invest, or operate securely in Saudi Arabia.
Call to Action
👉 Planning to do business in Saudi Arabia or facing a commercial dispute?
Speak with experienced legal and business advisors to ensure compliance, protect your interests