Published: Dec 26, 2024

Saudi Arabia – Statutory Limitation 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.

Limitation Deadline

The Law, enforced on 24 Shawwal 1441H (corresponding to 16 June 2020), establishes a five-year statutory period for hearing commercial claims. Accordingly, the deadline for filing claims predating 24 Shawwal 1441H is 23 Shawwal 1446H, which corresponds approximately to 5 May 2025 in the Gregorian calendar.

Immediate Action Advised

If you have claims arising before 24 Shawwal 1441H, it is essential to act without delay to avoid the risk of these claims being time-barred after 23 Shawwal 1446H.

We encourage you to contact us for further clarification or assistance.

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.

 

Key Contacts