The General Secretariat of the Zakat, Tax, and Customs Committees in the Kingdom of Saudi Arabia revealed striking statistics regarding the volume of cases and lawsuits registered over the past five years. More than 196,000 digital case files were recorded between 2020 and 2025. The year 2025 witnessed a record decrease in the number of lawsuits compared to the peak years of 2021 and 2022, reflecting a fundamental shift in the efficiency of the Kingdom's judicial and tax system.
The context of digital transformation and economic reform
This remarkable development comes within the framework of the economic and legislative reforms underway in the Kingdom as part of the Vision 2030 objectives, which have focused heavily on developing the legislative environment and improving the business climate. The comprehensive automation of judicial and tax services, along with the integration of relevant bodies, has contributed to increased transparency and clarity for taxpayers. The decline in the number of cases is not merely a statistic, but rather an indicator of the success of the proactive awareness strategies adopted by the relevant authorities, which has reduced areas of disagreement between taxpayers and the regulatory body.
Geographical distribution and the capital's prominence
In terms of the geographical distribution of lawsuits, the Riyadh region accounted for the lion's share, representing 60.5% of the total cases. This is unsurprising given its economic weight and the concentration of major companies' headquarters in the capital. The Makkah region came in second with 14.7%, followed by the Eastern Province with 11.5%. Meanwhile, regions like Al-Jawf and the Northern Borders recorded the lowest levels, not exceeding 0.4%, reflecting the disparity in commercial activity and economic density between the regions.
The evolution of the nature of cases and the mechanisms for resolution
The nature of disputes underwent significant changes in 2025, with customs-related criminal cases topping the list at 37%, while zakat-related disputes, which previously dominated, declined to only 16%. This shift is attributed to the clarity of the new zakat regulations. It is worth noting that the initial adjudication mechanisms proved highly effective, with 80% of cases being resolved in the preliminary stages, thus sparing parties the burden of resorting to complex and lengthy appeal processes.
Economic and investment impact
This decrease in disputes and the speed with which they are resolved carries significant economic implications. The stability of the tax environment and the clarity of litigation mechanisms are among the most important factors attracting foreign and domestic investment. The existence of flexible and effective settlement systems enhances investor confidence in the Saudi legal system and reinforces the principle of prompt justice. Furthermore, the fact that taxpayers constitute 59% of plaintiffs underscores the business sector's awareness of its rights and its ability to utilize official channels to ensure fair financial compliance.
