In a move aimed at enhancing transparency and integrity within the judicial system, the Administrative Judiciary Council in the Kingdom of Saudi Arabia has approved a new set of regulations governing the use of enforcement service providers. These decisions come as part of the Board of Grievances' ongoing efforts to develop its procedural tools in line with the objectives of the Kingdom's Vision 2030, which prioritizes the development of the judicial system and the swift resolution of cases.
The context of judicial development and the importance of the decision
This step is part of the strategic transformation underway in the administrative judiciary, where its role is no longer limited to issuing rulings, but has expanded to include ensuring their efficient implementation. These controls are of paramount importance given their direct impact on the Kingdom's investment environment; the existence of clear implementation mechanisms governed by rigorous integrity standards enhances the confidence of local and international investors in the strength of the judicial system and its ability to restore rights, which is reflected positively in the ease of doing business indicators.
Limiting services to licensed entities
The new regulations explicitly stipulate that enforcement services are restricted to entities and individuals holding valid, approved licenses. This measure aims to eliminate arbitrariness and ensure the professionalism of the services provided. However, the regulations demonstrate legislative flexibility to address exceptional circumstances, permitting the use of unlicensed providers only in two specific cases: first, when the parties to the enforcement agree on a particular service provider, provided the judicial department approves; and second, when no licensed service provider is available, in which case a temporary license is granted to ensure the administration of justice.
Integrity standards: prohibition of nepotism and conflict of interest
Perhaps the most significant aspect of the regulations is the unprecedented emphasis on integrity standards and the prevention of conflicts of interest. The regulations explicitly prohibit service providers and their staff from fulfilling any request related to themselves, their spouses, relatives, or in-laws up to the fourth degree. They are also barred from participating in auctions they are tasked with managing, a precautionary measure aimed at eliminating any potential for suspicion and ensuring the impartiality of sales and liquidation procedures.
Professional commitments and financial guarantees
The regulations require service providers to have official offices within the Kingdom and to strictly adhere to the confidentiality of data and information, disclosing it only as required by the nature of the work and with judicial authorization. To protect assets and funds under execution, the regulations grant the judicial department the authority to request an unconditional financial guarantee from the court-appointed custodian or treasurer, amounting to up to 5% of the estimated value of the funds, or to provide an insurance policy covering professional errors, thus providing a financial safety net for affected parties in the event of any negligence.
Wage regulation and license termination
Regarding financial and procedural aspects, the regulations entrust the judicial department with the task of determining the "fair market rate" for service providers to ensure that costs are not excessive, with the exception of cases where an agreement is reached between the parties involved. The regulations also established a clear mechanism for settling a service provider's business in the event of license cancellation or suspension, specifying a deadline of no more than 60 days to fulfill all obligations, thus ensuring the smooth continuation of enforcement procedures.
