Specific Rules for Business In the Saudi System

Abstract

Commercial laws provide specific rules for business, distinguishing it from civil activities. Experience has proved that the commercial environment is in need of such rules which provide two important advantages that business requires. These are speed and credit support, i.e. building up trust amongst business parties when obtaining dues or having term loans. These rules are summarized as follows:

1-Lawsuits arising from business fall under the jurisdiction of the Commercial Courts; 2-rules of commercial bankruptcy apply on merchants who are involved in commercial debts; 3- strictness in grace period for commercial debtors;4-short aging for commercial lawsuits;5- solidarity amongst commercial debtors; 6- freedom to prove commercial obligation; 7-accelerated execution of commercial provisions;8- and notification of commercial debtors by all means. These rules were established by many foreign laws. However, the Saudi Commercial and Judiciary Law has applied only some of these rules, and depending on their potential benefit, other rules will be considered in the future. This paper will address the provisions of these commercial rules and the issues thereof.