A new regulatory step to enhance the efficiency of the judicial system
In a significant step aimed at enhancing the efficiency of the judicial system and strengthening the principles of transparency and integrity, the Administrative Judiciary Council in the Kingdom of Saudi Arabia has approved a set of new regulations governing the use of private sector enforcement service providers. This decision comes within the framework of the comprehensive development underway in the Kingdom's justice sector, which seeks to expedite the issuance of judicial rulings and ensure their implementation with the highest standards of accuracy and impartiality.
General context and reforms of Vision 2030
This new regulation falls within the broader context of reforms spearheaded by the Kingdom's Vision 2030, which prioritizes developing the legislative and judicial environment to make it more attractive to local and foreign investment. Since the enactment of the Enforcement Law and its implementing regulations, the Ministry of Justice has worked to involve the private sector in certain services supporting judicial proceedings, including enforcement services, with the aim of reducing the burden on the courts and expediting the process of fulfilling rights for their rightful owners. These regulations issued by the Administrative Judiciary establish a robust regulatory framework for this partnership, ensuring the achievement of the desired objectives without compromising the fundamentals of justice.
Key features of the new regulations: Prevention of conflicts of interest
The new regulations included strict professional standards, most notably prohibiting enforcement service providers from participating in auctions they oversee, either directly or through their staff. They were also barred from handling any enforcement requests related to their relatives or in-laws up to the fourth degree. This measure aims directly to close any avenues that could lead to conflicts of interest and to ensure that sales in judicial auctions are conducted with the highest levels of impartiality and transparency, thus protecting the rights of all parties and achieving fairness in the distribution of assets.
Professional commitments to ensure quality and confidentiality
The regulations obligate service providers to a set of precise professional commitments, including the requirement to have a headquarters within the Kingdom, maintain the confidentiality of data and information they access in the course of their work, and refrain from disclosing it under any circumstances. They also emphasize the importance of documenting all work procedures and retaining copies for a minimum of five years. Furthermore, the obligations include a ban on altering or deleting any data in official forms and records, and the submission of periodic reports to the competent judicial authority, thus enhancing oversight of their work and ensuring the quality of services provided.
Expected impact on the judicial and economic environment
These regulations are expected to have a tangible positive impact both domestically and internationally. Domestically, they will contribute to increasing litigants' confidence in enforcement procedures and accelerating the flow of capital in the economy by expediting debt and receivables recovery. Internationally, these reforms enhance the reputation of the Saudi judiciary and increase the Kingdom's attractiveness as a safe and reliable investment environment, since an effective and transparent judicial enforcement system is one of the most important criteria foreign investors consider when making investment decisions. This step represents significant progress in regulating a vital profession and underscores the Kingdom's commitment to implementing global best practices in the justice sector.
