Execution Court Process in Saudi Arabia

Introduction

The Execution Court process in Saudi Arabia is a crucial step in enforcing judgments or awards against debtors. Understanding this process is essential for businesses and individuals involved in debt recovery or enforcement.

Precautionary Attachment

Before a judgment is issued, a person can apply for a precautionary attachment on certain assets of the debtor. This application must be supported by a guarantee to cover losses that the distrainee may incur if the person levying distraint is found not to have the right to make such an application.

Sale of Distrained Property

Distrained property is sold at auction under arrangements made by the Ministry of Justice and the Saudi Arabian Monetary Authority. The auction may be publicized through an announcement in one or more newspapers, with all expenses deducted from the proceeds of sale. The Execution Court will order an assessment of the value of assets to be sold.

Distribution of Proceeds

The proceeds of sale are distributed by order of the Execution Judge to the distraining creditors and those other persons considered party to the procedures. If the proceeds of sale are insufficient to repay all concerned parties, an amicable settlement may be reached which may be formalized by the Execution Court.

Insolvency

If a judgment debtor is unable to meet the debt due to insolvency, they may lodge a claim with the Execution Judge. The judge will question the debtor and attempt to trace and identify their assets by all possible means under the Execution Law.

Penalties for Default

Various penalties may apply if a debtor fails or delays cooperation with the execution process, including fines and imprisonment for extensive periods of time.

Time Period for Enforcement Process

The enforcement process is relatively fast, with an execution order normally issued within one month of application. Orders and warrants for seizure of assets and freezing of bank accounts can be issued within a further one to two months depending on the circumstances.

Conclusion

Understanding the Execution Court process in Saudi Arabia is crucial for businesses and individuals dealing with debt recovery or enforcement. By knowing the steps involved, they can navigate the process more effectively and achieve their goals.