The Board of Grievances in Saudi Arabia has approved a set of new regulations governing the work of enforcement service providers before its courts. This legislative step aims to establish a precise regulatory framework that enhances the efficiency and transparency of administrative judgment enforcement procedures. These nine regulations aim to organize licensing processes, define selection criteria, and clarify the obligations of these vital service providers, thereby ensuring procedural integrity, protecting rights, and achieving swift justice.
General context and importance of the new organization
This development comes within the framework of the comprehensive reforms underway in the Kingdom's justice and judicial sector, which align with the objectives of Saudi Vision 2030. These reforms aim to modernize the legislative environment, enhance the efficiency of the judicial system, and make it more attractive to local and foreign investment. Regulating the private enforcement services sector, which assists courts in enforcing judgments, is a cornerstone of this system. Assigning certain enforcement tasks to licensed private sector entities contributes to expediting case resolution and reducing the burden on judges, while ensuring the application of the highest standards of professionalism and governance.
Key features of the governing controls
The new regulations establish a clear framework for the relationship between the Ombudsman's offices, the designated authorities, and enforcement service providers, thereby enhancing professional conduct and limiting any practices that could negatively impact the integrity or efficiency of the enforcement process. The most important of these regulations are detailed below:
1. Licensing and Scope of Application
Article Two affirms that these regulations apply to all licensed enforcement service providers under the Enforcement Law. Article Three emphasizes that no enforcement service may be referred except to a licensed service provider, thus ensuring that these services are provided only by qualified entities that meet the approved regulatory standards.
2. Exceptions and conditions of referral
However, the regulations made an exception for two specific cases in which referral to an unlicensed provider is permissible; the first is when the implementing parties agree to choose a specific service provider, provided that he fully complies with the provisions, and the second is when a licensed service provider cannot be found, in which case the department may refer the service to an unlicensed provider after granting him a temporary license from the competent authority.
3. Professional and ethical obligations
Article Five obligates service providers to a set of professional commitments, including establishing a physical office within the Kingdom, displaying their name and license number on all printed materials, and issuing identification cards to their employees. It also emphasizes the absolute necessity of maintaining the confidentiality of information and data, prohibiting its disclosure except with the permission of the relevant department, and requiring the documentation and retention of all work procedures for a period of no less than five years.
4. Promoting integrity and preventing conflicts of interest
To prevent conflicts of interest and promote integrity, the regulations prohibit the service provider or its staff from undertaking any work related to a project that concerns them, their spouse, or relatives up to the fourth degree. They are also prohibited from participating in any tenders they are assigned, ensuring the impartiality and complete transparency of the procedures.
5. Asset Management and Financial Guarantees
Regarding the safekeeping of movable assets, the regulations require the judicial sales agent to receive and safeguard the assets until their sale. To ensure seriousness and protect rights, the regulations grant the department the authority to request an unconditional financial guarantee from the judicial custodian or treasurer before assigning the service to them, provided that this guarantee does not exceed 5% of the estimated value of the assets.
Expected impact on the judicial and economic environment
These controls are expected to have a tangible positive impact both domestically and internationally. Domestically, they will enhance confidence in administrative judicial enforcement procedures and expedite the fulfillment of rights, thereby strengthening social and economic stability. Internationally, an effective and transparent enforcement framework will bolster the Kingdom's position as a safe and reliable investment environment, assuring investors that robust judicial mechanisms exist to ensure the efficient and effective execution of contracts and the protection of their rights.
