Saudi Arabia's New Enforcement Law: Key Changes and Practical Implications

Overview

On 3/11/1447H (corresponding to 20/04/2026G), the Kingdom of Saudi Arabia enacted a new Enforcement Law¹Pursuant to Royal Decree No. M/237, following Council of Ministers Resolution No. 746 dated 26/10/1447H. (the “New Enforcement Law”). The new law replaces in its entirety the previous Enforcement Law²Issued under Royal Decree No. M/53 dated 13/8/1433H., and repeals all conflicting provisions. The New Enforcement Law will enter into force 180 days after its publication in the Official Gazette, and the Minister of Justice is required to issue implementing regulations within the same timeframe.

This client alert provides an overview of the key features and notable changes introduced by the New Enforcement Law, which carries significant implications for creditors, debtors, legal practitioners, and businesses operating in the Kingdom.

Scope and Jurisdiction

The New Enforcement Law establishes that the enforcement courts have exclusive jurisdiction to adjudicate enforcement procedures in the Kingdom of Saudi Arabia (“Enforcement Courts”). Enforcement Courts may be composed of trial (first instance) divisions and appellate divisions, or of trial divisions only, depending on the court's structure. Where an Enforcement Court does not have appellate divisions, appeals are heard by the appellate divisions of another enforcement court designated by the Supreme Judicial Council.

Enforcement Instruments

Article 7 of the New Enforcement Law provides an expanded and clearly defined list of enforcement instruments, which include: 

1. Final judgments, orders, and decisions, and judgments subject to expedited enforcement, issued by Saudi courts;
2. Arbitral awards, in accordance with applicable regulations;
3. Settlement agreements and conciliation documents authenticated pursuant to the Notarization Law, or issued by entities authorized by law;
4. Bills of exchange and promissory notes registered on national electronic platforms, with the implementing regulations to specify the conditions and procedures for such registration;
5. Cheques;
6. Contracts and acknowledgments authenticated under the Notarization Law;
7. Foreign judicial judgments, orders, arbitral awards, settlement agreements, and authenticated instruments, subject to the conditions set out in Article 9 of the law; and
8. Contracts and instruments designated as enforcement instruments by statute or Council of Ministers resolution.

Notably, bills of exchange and promissory notes issued before the New Enforcement Law’s entry into force that meet all legal requirements - except the requirement for registration on national electronic platforms - are treated as valid enforcement instruments for a transitional period of one year following the law's effective date.  Whilst this transitional grace period is welcome, creditors should ensure that any outstanding promissory notes issued in their transactions are appropriately registered during this period to preserve their ongoing validity.

Enforcement of Foreign Judgments and Awards

Article 9 of the New Enforcement Law sets out a detailed framework for the enforcement of foreign judgments, arbitral awards, settlement agreements, and authenticated instruments. Enforcement of foreign judgments and orders is permitted on the basis of reciprocity, subject to the Kingdom's obligations under international treaties and conventions, and provided that several conditions are satisfied. These conditions include: (a) the matter must not fall within the exclusive jurisdiction of Saudi courts; (b) there must be no prior identical proceeding pending in the Kingdom; (c) the parties must have been duly notified, properly represented, and afforded the opportunity to present their defense; (d) the foreign judgment or order must be final under the laws of the issuing jurisdiction; (e) the foreign judgment must not conflict with any prior Saudi judgment or order on the same subject matter; and (f) the foreign judgment must not contravene Saudi public policy.

Foreign arbitral awards and settlement agreements are enforced in accordance with the Kingdom's treaty obligations and subject to the same conditions. Foreign authenticated instruments are enforced after verifying compliance with the conditions under the laws of the issuing state, also on the basis of reciprocity.

Limitation Period

Under Article 11 of the New Enforcement Law, an enforcement application based on an enforcement instrument will not be accepted if more than ten years have elapsed since the date of its maturity, providing certainty regarding legal time limits for starting proceedings and protecting defendants from the burden of unexpected litigation long after the event.

Enforcement Procedures

• Filing and Order of Enforcement

The implementing regulations of the New Enforcement Law will specify cases in which the creditor must first request the debtor to perform the obligation before filing an enforcement application. Once filed, the competent administrative department verifies that the application meets all statutory and regulatory requirements before registering it. If the enforcement instrument meets its legal requirements, the court shall order the debtor to comply and notify the debtor immediately; if notification proves impossible, a public announcement is made, and the effects of notification run from the date of announcement.

• Asset Disclosure

The New Enforcement Law introduces robust asset disclosure requirements. Upon being notified of an enforcement order, the debtor is required to disclose all assets. The court may also order disclosure from third parties - including the debtor's agents, employees, financial counterparties, debtors of the debtor, and persons suspected of colluding with the debtor - where there are indications that the debtor is concealing or transferring assets. Persons ordered to disclose must comply within ten working days. Entities supervising or registering assets must provide the court with relevant data within three working days of receiving the court's order.

• Compulsory Enforcement Measures

If the debtor fails to comply within five working days of being notified of an enforcement order (or the announcement thereof), compulsory enforcement measures shall commence immediately, unless the debtor provides a bank guarantee sufficient to satisfy the debt, in which case an additional ten-working-day grace period is granted.

The compulsory measures include:(a) notification to licensed credit information agencies of the debtor's non-compliance; and (b) seizure of the debtor's existing and future assets, including amounts owed to the debtor by government entities, and enforcement against them.

In addition, the court may impose a daily fine of up to SAR 5,000 for each day of continued non-compliance, subject to a maximum cap to be determined by the implementing regulations. The fine may be cancelled in whole or in part if the debtor fulfils the obligation, and the fine proceeds accrue to the State Treasury.

• Travel Bans

Upon request of the enforcement applicant, the court may order a travel ban on the debtor for a period not exceeding three years, renewable upon a fresh application for an aggregate maximum of six years. The travel ban is lifted in specified circumstances, including where the debtor requires medical treatment abroad (supported by an approved medical report), where the total debt is a minor amount (as defined by the implementing regulations), where the debtor's profession requires travel, where the ban would cause harm to the debtor, or where the debtor discloses sufficient unencumbered assets to satisfy the debt.

• Asset Tracing, protected assets, and sale of seized assets

The New Enforcement Law introduces a dedicated chapter on asset tracing, empowering the court, at the creditor's request, to order the tracing of a debtor's assets where there are indications of concealment or dissipation following non-compliance with an enforcement order, including through interrogation of the debtor or suspected third parties by the court itself, a competent administrative department, or a licensed private-sector provider, with third parties required to comply within three working days or face forcible appearance. Certain assets are exempt from seizure, including public assets, the debtor's residence, means of transportation, professional tools, and personal necessities (provided they do not exceed what is reasonably sufficient), as well as government subsidies and other categories designated by Council of Ministers resolution; however, wages and salaries may be partially seized (up to half for maintenance debts and one-third for other debts), and civil and military pensions may likewise be partially seized (up to half for maintenance debts and one-quarter for other debts), with specific priority rules applying where claims compete. Seized assets are sold by public auction unless a voluntary sale is permitted, with the award decision constituting the contract and purging the asset of third-party claims against the buyer, while securities subject to the Capital Market Law are sold in accordance with agreed procedures with the Capital Market Authority, and sale proceeds are not released to the creditor until the property transfer is completed.

• Direct Enforcement

Where the enforcement instrument requires an act or an omission, and the debtor fails to comply within five working days of notification, the court shall immediately order the use of coercive force and, if needed, direct the competent authority to carry out the obligation. If enforcement through these means is not possible or the debtor's personal performance is required, the court may impose a travel ban and a daily fine of up to SAR 10,000, subject to a maximum cap set by the implementing regulations. If 30 working days elapse without compliance, the court may, at the creditor's request, order the imprisonment of the debtor for a period not exceeding 180 days, which may be extended upon a further request.

Imprisonment is not permitted where the debtor is under 18 years of age, is medically unfit for imprisonment (supported by a medical report), is a pregnant woman or has a child under two years of age, or is an ascendant or descendant of the enforcement applicant. Imprisonment must be served separately from criminal detainees, and the completion of the imprisonment term does not extinguish the underlying obligation.

Penalties for Non-Compliance

The New Enforcement Law introduces a comprehensive penalties chapter (Chapter 6), which are notably stricter than the existing enforcement regime:

• Concealment, Obstruction, and Resistance (Article 50). Any person who conceals or dissipates assets to prevent enforcement, deliberately obstructs enforcement (by refusing to comply with orders, failing to disclose assets, filing vexatious proceedings, disposing of seized assets, or refusing to submit to interrogation), resists enforcement by threatening or assaulting enforcement personnel or creditors, or provides misleading or false information to the court, is punishable by imprisonment of up to three years and/or a fine of up to SAR 1,000,000. The same penalties apply to accomplices, including those who agree, incite, or assist in committing the offence.
• Public Officials (Article 51). A public official who prevents or obstructs enforcement is punishable by imprisonment of up to five years, and such conduct is classified as a breach-of-trust offence.
• Asset Dissipation (Article 52). A debtor who is found to have dissipated assets, where the assets in question are substantial, faces imprisonment of up to fifteen years, even if insolvency is proven. This is classified as a major crime warranting pre-trial detention.
• Creditor Abuse (Article 53). A creditor who files an enforcement application with the intent to harm the debtor, or who delays concluding the enforcement after the debt is satisfied, is punishable by imprisonment of up to three years and/or a fine of up to SAR 100,000. The same penalties apply to persons who disclose confidential debtor asset information without legal basis.
• Family Law Enforcement (Article 54). Any parent or other person who refuses to comply with custody, guardianship, or visitation enforcement orders, or resists or obstructs such enforcement, is punishable by imprisonment of up to 90 days and/or a fine of up to SAR 30,000.
• Repeat Offences (Article 56). In cases of recidivism (i.e., commission of the same offence within three years of a final judgment), penalties may be doubled, up to twice the statutory maximum.

Outsourcing of Enforcement Services

The New Enforcement Law authorizes the Minister of Justice to delegate certain enforcement procedures to administrative departments, competent government authorities, or the private sector, with the exception of orders for imprisonment, travel bans, and the resolution of disputes. Private-sector entities must be licensed in the Kingdom, possess adequate technical expertise and financial resources, be free from conflicts of interest, and maintain the confidentiality of all information obtained in connection with the delegated work.

The Ministry of Justice is tasked with licensing and supervising enforcement service providers, which include judicial sale agents, judicial custodians, asset recovery service providers, asset tracing service providers, and visitation enforcement service providers in personal status matters.

Key Takeaways

The New Enforcement Law represents a significant modernization of Saudi Arabia's enforcement framework. Businesses, financial institutions, and legal practitioners operating in the Kingdom should take note of its important developments. 

The expanded and clearly defined list of enforcement instruments - including authenticated contracts and electronically registered commercial paper and promissory notes- broadens the scope of directly enforceable obligations, although creditors should take care to register any issued and unregistered notes during the 12-month transitional period.

The detailed framework for foreign judgment and arbitral award enforcement provides greater clarity and predictability for cross-border disputes. The introduction of daily fines, asset tracing mechanisms, and the outsourcing of enforcement functions to licensed private-sector providers signals a more robust and efficient enforcement regime. Finally, the significantly enhanced penalty provisions - including imprisonment of up to 15 years for asset dissipation and fines of up to SAR 1 million for obstruction - underscore the Kingdom's commitment to ensuring effective compliance with court orders and the protection of creditors' rights.

Parties with existing or anticipated enforcement proceedings in Saudi Arabia should review their exposure in light of the new law's provisions and ensure compliance with the new requirements once the law enters into force.

Additional Contributors: Abdulrahman Albilal