Commercial Court Guide in Saudi Arabia
This guide has been designed as a simplified and reliable source for understanding the role of the Saudi Commercial Court, its jurisdiction, and the related procedures. Without going into complex regulatory details, we present the information that matters to you as a citizen or resident seeking to understand your rights and duties when filing a commercial lawsuit or dealing with one of the parties to commercial cases.
If you have a commercial dispute and are looking to understand the procedures or jurisdiction, you can request a general consultation via WhatsApp
What Is the Commercial Court?
The Commercial Court Guide describes a specialized judicial body within the Ministry of Justice system that hears cases of a commercial nature between individuals and companies. These courts are based on the Commercial Court Law issued in 1441 AH, which regulates their work and defines the framework of their subject-matter jurisdiction.
Its role is not limited to deciding between litigants; it also includes organizing commercial court hearings in a way that ensures justice and speed in deciding cases, and keeps pace with developments in the Kingdom’s investment environment.
Types of Cases Decided by the Commercial Court
According to the Saudi Commercial Court Guide, this court has exclusive jurisdiction over cases of a commercial nature, without hearing family, administrative or general real estate disputes. This court is a subject-matter jurisdiction body for disputes between merchants or entities with commercial capacity. The most prominent cases it hears include:
- Commercial disputes arising between merchants or companies, such as disagreements over contract performance or service quality.
- Bankruptcy cases and requests for protection from creditors under the provisions of the Bankruptcy Law.
- Disputes between partners or shareholders in companies over management, profit distribution or withdrawal.
- Claims of breach in sales contracts, service contracts or approved commercial agencies (filing a commercial lawsuit).
- Financial claims arising from commercial papers, such as checks and promissory notes, provided the statutory conditions are met.
- Objections to violations of the competition law or infringement of trademark rights.
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Who Turns to the Commercial Court?
The Commercial Court is turned to by anyone who has commercial capacity in the contractual relationship or faces a dispute arising from a commercial dealing, and who aims to establish their right or demand an obligation arising from a contract or commercial dealing. This includes a wide range of parties, as specified by the Commercial Court Guide approved in Saudi Arabia. The most prominent situations are:
Merchants or companies
Who face a contractual breach in sales contracts, services, or commercial partnerships, and seek a court judgment that restores their rights.
Suppliers or customers
Who hold financial entitlements proven by official contracts or commercial papers such as checks and promissory notes.
Partners in limited liability or joint-stock companies
When disputes arise over management, distribution or withdrawal from the company.
Individual or institutional investors
Who suffered harm from irregular commercial practices by partners or other parties.
Trademark agents or official distributors
When the terms of distribution agreements or approved commercial use are breached.
What Distinguishes the Commercial Court from Other Courts?
Determining the competent court depends on the type of dispute, and not every case is heard before the Commercial Court. The following table helps you understand the differences between the Commercial Court and some other courts.
| Legal Situation | Competent Court | Notes |
|---|---|---|
| Dispute over a commercial contract | Saudi Commercial Court | Requires proof of the commercial relationship |
| Financial claim arising from a lease | General Court | If the party is not a merchant |
| Custody or alimony case | Personal Status Court | Not commercial |
| Objection to a final judicial judgment | Court of Appeal | Does not hear the substance of the commercial dispute |
Legal Warnings Before Filing Your Commercial Lawsuit
Before filing a lawsuit before the Commercial Court, it is important to consider some statutory points that may affect the acceptance of the lawsuit and its judicial course. Overlooking these details may delay the decision or even lead to the lawsuit being rejected in form from the outset. Here are the most prominent notes according to the Commercial Court Guide:
- Importance of judicial jurisdiction: You must make sure the dispute is commercial in nature, and that its parties have the statutory capacity (merchant/company). Filing a commercial lawsuit in a court without jurisdiction may lead to its later rejection.
- Incomplete statement of claim: The statement must include all statutory data, including the parties, facts, requests and attachments, presented with complete clarity.
- Absence of a commercial instrument: It is important to attach a complete instrument proving the commercial relationship between the parties, such as a contract, invoice, check, bank transfer, or documented communication.
- Missing defendant data: The lack of accurate information about the other party, such as the ID number or the correct address, may delay notification procedures or make it impossible to hear the case.
- Mixing types of claims: Where there are multiple claims (financial, in-kind, compensatory), each type must be separated and the statutory basis for each clarified to make them easier to hear and accept.
Not sure about the court's jurisdiction or the validity of the instrument? You can request a general legal consultation via the WhatsApp button at the bottom of the screen.
Practical Examples from Judicial Practice
To understand the jurisdiction and procedures of the Commercial Court Guide in practice, we present two realistic cases that reflect how commercial lawsuits are handled before this court. These examples show the nature of the disputes, the evidence requirements, and the mechanism for deciding them.
Case: Supply lawsuit between two commercial companies
Company (X) concluded a contract with Company (Y) to supply technical services during a specified period, but the latter refused to pay after performance.
- Company (X) attached a copy of the contract, the service invoices, and a returned check proving the commercial relationship.
- A commercial statement of claim was filed via Najiz..
- The court studied the documents and set a first hearing within 7 days, followed by two additional hearings to hear the defenses.
- A final judgment was issued obliging Company (Y) to pay the amount within a specified period, and the judgment was later enforced through the Enforcement Court.
Case: Partnership dispute within a limited liability company
A founding partner withdrew from the company without following the mechanism agreed in the articles of association, and refused to cooperate in signing the share transfer minutes.
- The other partner filed a lawsuit before the court competent in commercial disputes, attaching a copy of the contract, the internal bylaws and previous minutes.
- The first hearing was set one week after registration, and the statements of both parties were heard in three hearings.
- The court issued a judgment obliging the withdrawing partner to comply with the statutory obligations, with documentation of the subsequent procedures for transferring ownership.
Frequently Asked Questions About the Commercial Court
What Is the Commercial Court?
The Commercial Court is a judicial body specialized in deciding commercial disputes between merchants and companies, in accordance with the Commercial Courts Law and related regulations.
What is the difference between the Commercial Court and other courts?
The Saudi Commercial Court has jurisdiction over commercial cases only, such as contract disputes between merchants or companies. The general courts hear civil and real estate cases, and the personal status courts hear family cases. The basic criterion of distinction is the Commercial Court’s jurisdiction, tied to the nature of the dispute and the capacity of the parties.
What are the steps to file a commercial lawsuit electronically?
A commercial lawsuit can be filed through the Najiz portal following these steps:
- Log in through National Single Sign-On.
- Choose the commercial cases service.
- Fill in the commercial statement of claim data.
- Attach the documents.
- Submit the request and follow it electronically.
The lawsuit is automatically referred to the competent commercial cases court.
What documents are required for the statement of claim?
A commercial statement of claim usually includes:
- A copy of the contract or commercial instrument.
- Invoices or bank transfers.
- The parties’ details.
- What proves the commercial relationship.
The clearer the documents, the faster the case is heard before the court competent in commercial disputes.
Can a lawsuit be filed without a commercial register?
Yes, this is possible in some cases, such as when the claimant is an individual dealing with a company or a merchant. What matters is proving the existence of a commercial dispute with a documented relationship, and owning a commercial register is not always a condition, as long as the dispute falls within the scope of commercial cases.
What is the statutory period for deciding the case?
There is no fixed period, but under the Commercial Court Law the courts seek to decide within reasonable periods. Simple cases often take from 2 to 4 months, while complex cases may take longer depending on the number of commercial court hearings and the nature of the dispute.
Is a licensed lawyer required to file the lawsuit?
A lawyer is not required by law, and an individual may file a commercial lawsuit themselves. However, using a licensed lawyer helps draft the commercial statement of claim more precisely, especially in large or complex cases before the Saudi Commercial Court.
How are appeals and challenges to a Commercial Court judgment made?
The appeal is made through the Court of Appeal within the statutory period specified in the judgment. This includes submitting an appeal memorandum explaining the grounds for challenge. The facts are not re-examined in full; rather, the sound application of the Commercial Court Law and judicial procedures is reviewed.
Does the Commercial Court accept cases between individuals who are not merchants?
As a rule, the jurisdiction of the Commercial Court requires that at least one of the parties has commercial capacity. However, some cases between individuals may be accepted if it is proven that the dispute arises from organized commercial activity; otherwise the lawsuit is referred to the competent general court.
Can there be reconciliation or settlement while the case is being heard?
Yes, the parties may agree to reconciliation at any stage of the lawsuit. The settlement is documented in the case file before the court competent in commercial disputes, and reconciliation is considered a binding statutory instrument that makes continuing the commercial cases unnecessary.
In some cases, jurisdiction may be unclear, especially when the case has financial and personal dimensions or involves more than one party.
If there is complexity or a conflict of jurisdictions, you can request a general legal consultation