In a move aimed at enhancing the efficiency of the justice system and ensuring the quality of judicial outcomes, the Board of Grievances in the Kingdom of Saudi Arabia has approved a set of new regulations governing the use of enforcement service providers before its courts. This step aims to establish a precise regulatory framework that defines the scope of these services, the conditions for referral, the obligations of service providers, and rigorous oversight mechanisms, thereby ensuring the integrity of procedures, the preservation of rights, and the achievement of swift justice.
The context of judicial development in the Kingdom
These new regulations align with the comprehensive development underway in the Saudi Arabian judicial system, in line with the goals of Vision 2030. This vision focuses on enhancing the efficiency of judicial services and engaging qualified private sector entities to support enforcement efforts under direct judicial oversight. These regulations aim to transition from traditional procedures to professionally managed practices that ensure the swift restoration of rights to their rightful owners while maintaining the highest standards of transparency.
Scope of application and terms of use
Article Two of the approved regulations stipulates that they apply to all licensed enforcement service providers, as per the Enforcement Law, thus restricting the provision of these services to qualified entities that meet the regulatory requirements. In this context, Article Three emphasizes that enforcement services may not be referred to unlicensed providers, except in two exceptional cases:
- Agreement of the parties: If the implementing parties agree to choose a specific service provider, the department may authorize this choice, provided that it fully complies with the regulations.
- Lack of a licensed provider: In the event that a licensed service provider cannot be found, the regulations allow the department to use an unlicensed provider, provided that he is granted a temporary license by the competent authority.
Promoting integrity and preventing conflicts of interest
The new regulations place great emphasis on professional integrity, categorically prohibiting service providers and their direct staff from undertaking any work related to a request concerning them personally, or one of their spouses, relatives, or in-laws up to the fourth degree. The regulations also prohibit service providers from participating in auctions they are tasked with managing and forbid any alteration or deletion of official forms and records, all to ensure the impartiality and transparency of the procedures.
Professional obligations and financial guarantees
Article Five mandates that service providers establish an official office within the Kingdom, document all procedures, and retain copies for a minimum of five years. To safeguard financial assets, Article Eight grants the department the authority to request an unconditional financial guarantee from the custodian or court-appointed treasurer, not exceeding 5% of the estimated value of the funds, or the submission of a valid insurance policy covering professional malpractice. This achieves a balance between streamlining procedures and protecting the rights of beneficiaries.
Expected impact of the new regulations
These regulations are expected to expedite the execution of court rulings issued by the Board of Grievances and reduce litigation time during the enforcement phase. They will also enhance investor and business confidence in the Kingdom's legal environment by ensuring effective and transparent enforcement mechanisms and clearly defining fees based on "fair market rates" as determined by the judicial department, thus minimizing disputes over enforcement costs.
