Comprehensive Guide to Commercial Dispute Resolution Law

The commercial dispute resolution law was established to establish a comprehensive legal framework for resolving these disputes through multiple mechanisms, including courts, arbitration, mediation, and amicable settlements.

Commercial disputes are an essential part of the evolving business environment in the Kingdom of Saudi Arabia, often arising from differences in the interpretation of contracts, financial obligations, intellectual property rights, or corporate governance. This law aims to protect commercial rights, enhance the stability of the business environment, and build trust between all parties, thus supporting economic growth and attracting investment.

What is Commercial Dispute Resolution Law​ in Saudi Arabia

Commercial disputes are legal conflicts that arise between parties engaged in business activities due to conflicting interests or differing interpretations of commercial obligations.

These disputes may occur between companies, between companies and individuals, or among individuals involved in business activities. In Saudi Arabia, such disputes are governed by the commercial dispute resolution law​, aiming to protect commercial rights, ensure a stable business environment, and enhance trust among business parties.

Read also: The New Companies Law Saudi Arabia Regulations​ in 2025

What Are the Five Methods of Dispute Resolution?

Commercial disputes are a natural part of the business environment and often arise due to differences in contract interpretation, financial issues, or intellectual property rights. In Saudi Arabia, these disputes are addressed through various modes of dispute resolution to ensure fair and effective outcomes, including:

1. Judicial Settlement: Commercial disputes are heard before competent courts or the Board of Grievances, ensuring the rights of all parties are protected.
2. Arbitration: An effective method where specialized arbitrators are appointed to resolve disputes quickly and efficiently.
3. Mediation: A neutral third party helps the disputing parties reach an amicable solution outside the court.
4. Amicable Settlement: Companies sometimes resolve disputes through direct dialogue or friendly agreements between the parties involved.
5. Legal Consultation: Consulting with a specialized lawyer provides precise legal guidance, helping to resolve the dispute lawfully and correctly.

The choice of method depends on the nature of the dispute and the legal position of the parties, aiming for a prompt and effective resolution that safeguards the interests of all involved.

Types of Commercial Disputes in Saudi Arabia

Understanding the types of commercial disputes helps companies handle them legally, quickly, and effectively. In Saudi Arabia, these disputes are mainly classified into the following categories:

• Contractual Disputes: Arise from disagreements over the terms of commercial contracts, such as fulfilling obligations or amending contract clauses.
• Intellectual Property Disputes: Include cases related to trademarks, patents, and copyrights.
• Corporate Disputes: Involve conflicts between partners or companies, such as disputes over profit distribution or executing business agreements.
• Tax and Customs Disputes: Occur when there are disagreements regarding tax payments or customs duties, especially for international companies.
• Financial Disputes: Cover issues like unpaid debts or problems related to international financial transfers, which may require filing a commercial financial claim to resolve.

Check out: The New Companies Law Saudi Arabia Regulations​ in 2025

How to File a Commercial Dispute Claim via the Najiz Portal under the Commercial Dispute Resolution Law

Filing a legal claim ensures the protection of the rights of individuals and businesses in Saudi Arabia and enables efficient resolution of commercial disputes under the commercial dispute resolution law. Claims can be submitted through the Najiz portal by following these steps:

1. Register on the Najiz: Create a new account if you do not already have one.
2. Select the Type of Claim: Choose “Commercial Dispute” from the list of available claims.
3. Enter Claim Details: Provide information about the parties involved, the nature of the dispute, the date of the incident, and supporting evidence.
4. Attach Required Documents: Upload commercial contracts, financial documents, or any other documents that support your case.
5. Pay Fees Electronically: Settle any applicable fees through the Najiz portal.
6. Wait for Session Scheduling: After submitting the claim, you will receive a notification from the court specifying the hearing date.

The Najiz portal provides an easy and fast way to file commercial claims under the commercial dispute resolution law, allowing legal procedures to be completed efficiently without the need to visit the court in person.

Commercial Disputes Examples in Saudi Arabia

Commercial disputes in Saudi Arabia can arise in various contexts and often require legal intervention or alternative dispute resolution methods. Common examples include:

• Contract-related disputes: Conflicts over the fulfillment of contract terms, delays in delivery, or non-payment of agreed amounts.
• Partner or shareholder disputes: Issues arising within companies or among partners, such as disagreements over profit distribution, management decisions, or financial obligations.
• Bankruptcy disputes: Matters concerning bankruptcy procedures, asset liquidation, and safeguarding creditor rights.
• Intellectual property disputes: Disagreements regarding trademarks, patents, copyrights, and other intellectual property rights.
• Supply chain and distribution conflicts: Disputes emerging from supplier or distributor agreements between businesses.
• Unfair competition and commercial marketing disputes: Conflicts related to deceptive practices, market manipulation, or competitive violations.
• Commercial arbitration disputes: Situations where parties agree to resolve conflicts through an arbitration panel instead of the courts.
• International trade disputes: Disputes involving cross-border transactions with foreign entities.

Addressing these disputes effectively requires thorough legal analysis and the selection of the most suitable resolution approach. Options include formal litigation in commercial courts or alternative methods such as mediation and arbitration, which can provide faster resolutions while preserving business relationships.

Learn about: How to Get Business License in Saudi Arabia for Foreigners?

Conclusion

The commercial dispute resolution law in Saudi Arabia provides multiple efficient mechanisms for resolving disputes, such as arbitration, mediation, and litigation. At Etqan Law Firm, we specialize in guiding clients through these processes with professionalism and expertise, ensuring their rights are protected and disputes are resolved effectively.

The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +96656113776, +966541110440, +966504315333.

Additionally, feel free to visit our branches located at:

• Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
• Riyadh: King Abdulaziz Street, across from the Kingdom Tower
• Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.

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