New implementing law to abolish the detention and cancellation of defaulting debtors’ online services


Saudi Gazette Report

RIYAD – There are provisions in the new judicial enforcement law to prevent the detention of insolvent and not cancel electronic services for them. The actors of the judicial sector await the promulgation of the new law which contains many radical amendments in debt cases.

There is also a provision providing for prison sentences of up to five years for public sector employees if involved in preventing or obstructing the execution of the verdict as this is considered a crime against honesty.

The changes include the abolition of the jail provision for defaulters and the rescinding of the suspension of government services for them. Another important provision of the law deals with the gap between the travel ban order and the decision to terminate the residence permit (iqama) of non-Saudi insolvents.

Court order enforcement procedures also prohibit financial transactions with those who have failed to exercise their financial rights.

The law advocates the disclosure of convicts against whom enforcement proceedings have been initiated as well as those suspected of passing funds to them, in addition to criminalizing providing incorrect information.

It also activates the tracking of illegal funds and gives the court more extensive powers to track, interrogate, recover and invalidate these funds and transactions.

The law states that it is not permitted to issue orders on the seizure and execution of state funds.

The same applies to the house in which the insolvent person and his successors reside, as well as his means of travel if their values ​​do not exceed the amount of his solvency.

They can be seized and the verdict executed if they are mortgaged by the creditor.

It is also not allowed to implement the verdict on wages and salaries except by half of the total wage in the verdict related to the food debt while the amount of one third of the total wage for the other debts .

In the case of alimony and other debts, half of the total salary is allocated to the maintenance debt and a third of the other half to other debts.

If these debts are multiple, a third of the other half is distributed among the creditors in accordance with the provisions of the law and the implementing regulations.

The law also allows the insolvent to exercise his profession or his trade and to fulfill his personal obligations, and the court assesses his solvency, and decides the amount of the State subsidies which can be granted to him.


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