Saudi Arabia – Approaching 5-Year Statute of Limitations Deadline

We bring to your attention a critical deadline under Saudi Arabia’s Commercial Courts Law (“the Law”). Published on 17 April 2020 and enforced 60 days later on 16 June 2020, the Law introduced a statutory five-year period beyond which certain commercial claims may no longer be heard by the courts.

For claims and rights that arose prior to 16 June 2020, the five-year countdown began on that enforcement date—meaning the final day to file any relevant claims is 15 June 2025. After that date, unless an exception applies (such as the defendant’s acknowledgment of the right or another interruption recognized by law), the claim may be time-barred.

Given this approaching deadline, we encourage all clients with potential commercial claims—whether arising from contracts, unpaid invoices, or other business disputes predating 16 June 2020—to evaluate their positions promptly. Failing to initiate proceedings before 15 June 2025 may forfeit your right to seek judicial relief.

Why This Matters

• Risk of Time-Bar: Once the statutory period expires, legal avenues to pursue certain claims could be lost.
• Stakeholder Impact: Any party holding potential claims (creditors, suppliers, service providers, etc.) could be affected if they do not act quickly.
• Commercial Strategy: Addressing pending claims can preserve legal rights and improve your negotiating position in business transactions.

How can we help?

Our team of experienced commercial and litigation lawyers is ready to assist you in:

• Assessing Potential Claims: Determining if your claim is subject to this five-year limitation and whether any exceptions might apply.
• Timely Filing: Initiating necessary court proceedings to protect your rights before the statutory bar.
• Strategic Advisory: Providing guidance on settlement options, alternative dispute resolution, or other legal remedies.

Given the urgency, we recommend immediate consultation to ensure all steps are taken within the remaining timeframe. Delaying action risks forfeiting legal entitlements. Thank you for your prompt attention. We look forward to assisting you further.