Filing a commercial lawsuit in Saudi Arabia under the Commercial Courts Law: jurisdiction, pre-filing notice, registration steps on Najiz, judicial costs, judgment and appeal timelines, and when you need a lawyer.
A client who has not paid your invoices, a supplier who breached a supply agreement, or a partner refusing to hand over your share: all of these disputes belong before the commercial court. But filing a commercial lawsuit is more than filling in a form on Najiz. The law requires prior notice for some claims, makes proceedings written, and expects all defenses and documents to be submitted from the start. A mistake in the statement of claim can mean rejection or lost time.
In this guide we explain when the commercial court has jurisdiction over your dispute, what to do before filing, the registration steps on Najiz, how judicial costs are calculated, the timelines for judgment and appeal, and the mistakes that lose a case before it begins.
When Does the Commercial Court Have Jurisdiction?
The Commercial Courts Law issued in 1441H sets the jurisdiction of these courts. The main categories are:
- Disputes between merchants arising from their principal or ancillary commercial activities.
- Claims against a merchant in commercial contract disputes, where the principal claim exceeds the threshold set by the Supreme Judicial Council.
- Disputes between partners in companies, and claims arising under the Companies Law.
- Bankruptcy claims and claims arising under intellectual property laws and other commercial laws.
- Compensation claims for damages arising from a claim the court has already heard.
Establishing jurisdiction is the first step, because a jurisdiction objection is one of the most common defenses used to buy time. There are standalone commercial courts in Riyadh, Jeddah and Dammam, and commercial circuits in the general courts of other cities.
Before Filing a Commercial Lawsuit: 4 Steps You Should Not Skip
1. Prior Notice to the Defendant
For the claims specified in the Implementing Regulations, the claimant must notify the defendant in writing to pay or perform at least 15 days before filing. Keep proof of the notice, as it is one of the attachments to the statement of claim.
2. Check the Limitation Period
A commercial claim is not heard after 5 years from the date the right arose, unless the defendant admits the right or the claimant presents an excuse the court accepts. Do not delay claiming old receivables.
3. Settlement and Mediation
Before filing, the law allows the parties, under the court's supervision, to exchange documents and memoranda, hold a meeting to define their claims, and use mediation. The regulations require some claims to go through settlement or mediation first, and mediation may not exceed 30 days unless the parties agree to a longer period. An approved settlement becomes an enforceable instrument.
4. Gather Your Documents Before Registration
Proceedings before the commercial court are written, and the statement of claim must include all grounds from the start. Collect the contract, invoices, purchase orders, correspondence, account statements and proof of notice before you open Najiz.
Steps to File a Commercial Lawsuit on Najiz
The claim is registered electronically on the Ministry of Justice's Najiz platform:
- Log in with your National Single Sign-On (Nafath) account, or with a "Najiz Business" account if the claim is in a company's name.
- Choose the "Submit a Statement of Claim" service under case services, and select "Commercial" as the court type.
- Enter the parties' details: the defendant by commercial registration or ID number, with their national address.
- Write the relief sought precisely, with the amount claimed and the full grounds of the claim. Do not combine unrelated claims in one statement.
- Attach the documents and proof of prior notice where the claim requires it.
- Submit the request and follow the registration status. If registration is refused for a deficiency, you have 15 days to complete it, and you may also challenge a refusal within 15 days.
After registration, both parties follow hearing dates and memoranda on Najiz, as explained in our guide to checking your case on Najiz.
Judicial Costs for a Commercial Lawsuit
Costs are calculated under the Judicial Costs Law and its regulations as a percentage of the claim value, and the losing party generally bears them:
| Claim value | Judicial costs rate |
|---|---|
| Below SAR 100,000 | 5% |
| SAR 100,000 to under SAR 500,000 | 4% |
| SAR 500,000 to under SAR 1,000,000 | 3% |
| SAR 1,000,000 and above | 2% |
Example: a claim of SAR 300,000 carries estimated costs of 4%, about SAR 12,000. That is why valuing the claim accurately matters: inflated claims raise the cost for whoever loses them.
Judgment and Appeal Timelines Before the Commercial Court
One of the key features of the commercial courts is that the law sets fixed timelines for most stages:
| Stage | Statutory timeline |
|---|---|
| Defendant's defense memorandum | At least 1 day before the hearing |
| Ruling on a jurisdiction objection | Within 20 days |
| Urgent applications | Within 3 working days of referral |
| Delivery of the judgment copy | Within 20 days of pronouncement |
| Appeal against judgments | 30 days, or 10 days for urgent claims and jurisdiction rulings |
| Objection to a payment order | 15 days from notification |
Judgments in small claims that do not exceed the value set by the Supreme Judicial Council are generally not appealable. For appeal procedures in detail, request our representation before the courts of appeal service.
Payment Orders: The Fastest Route to Collect a Fixed Debt
If your right is a fixed sum of money proven in writing and already due, such as an approved invoice or an acknowledgment of debt, you may not need a full lawsuit. The Commercial Courts Law allows you to request a payment order, issued within 10 days of registration, and the debtor may object within 15 days of notification.
If you hold an enforceable instrument such as a cheque or promissory note, your route is the enforcement court directly. To compare the options, read our guide to debt collection in Saudi Arabia, or request our debt collection for companies and individuals service.
Mistakes That Lose a Commercial Case Before It Begins
- Skipping the prior notice in claims that require it, so the claim is rejected or its registration delayed.
- A statement of claim missing its grounds, even though the law requires all grounds to be submitted from the start.
- Combining unrelated claims in one statement, which the law prohibits.
- Choosing the wrong court or the wrong defendant, such as suing the company's manager instead of the company itself.
- Delaying the claim until the five-year period is about to expire.
- Ignoring an arbitration clause in the contract, which lets the defendant object to jurisdiction. If your contract has such a clause, read our guide to commercial arbitration in Saudi Arabia.
After the Judgment: From Ruling to Actual Collection
A judgment in your favor is not the end of the road; what matters is turning it into money in your account. These are the usual stages after judgment:
- Wait for the appeal period: the judgment becomes final after 30 days without objection, or when upheld by the court of appeal.
- File for enforcement: the final judgment is submitted to the enforcement court on Najiz as an enforceable instrument.
- Enforcement procedures: they start with notifying the judgment debtor to pay, then escalate to measures such as asset disclosure and attachment if the debtor refuses.
- Costs: the judgment debtor generally bears the judicial costs of the enforcement request.
If it becomes clear during the case that the other party is in financial distress or trying to move assets, it may be better to request an urgent measure such as a precautionary attachment, or to consider bankruptcy and liquidation procedures depending on their situation.
When Do You Need a Lawyer in a Commercial Case?
The Commercial Courts Law and its regulations specify which claims must be filed or argued by a lawyer. Even where it is not mandatory, the written nature of the proceedings means the quality of the statement of claim and memoranda is what decides the case:
- For representation, hearing attendance and memoranda, request our representation at commercial court hearings service.
- For larger disputes covering settlement, arbitration and litigation, see our litigation and dispute resolution service.
- If your dispute is with a partner, first read about the essential clauses in partnership contracts.
- To assess your position before any step, book an in-office legal consultation.
Frequently Asked Questions
Must I notify the other party before filing a commercial lawsuit?
Yes, for the claims specified in the Implementing Regulations. The claimant must give the defendant written notice to pay at least 15 days before filing, otherwise the claim may not be registered.
What is the limitation period for a commercial claim in Saudi Arabia?
A commercial claim is not heard after 5 years from the date the right arose, unless the defendant admits the right or the claimant presents an excuse the court accepts, and unless a specific provision says otherwise.
How much does it cost to file a commercial lawsuit?
Judicial costs are a percentage of the claim value: 5% below SAR 100,000, 4% from SAR 100,000 to under 500,000, 3% from SAR 500,000 to under 1 million, and 2% for SAR 1 million and above. The losing party generally bears them.
What is the appeal period for a commercial court judgment?
30 days from the date set for receiving the judgment copy, and 10 days for judgments in urgent claims and rulings on jurisdiction objections.
Do I need a lawyer to file a lawsuit before the commercial court?
The Commercial Courts Law and its regulations specify which claims must be filed or argued by a lawyer. Even where it is not mandatory, drafting the statement of claim and written memoranda requires experience, because proceedings are written and defenses are submitted at once.
A strong statement of claim from day one saves you long hearings
We review your documents, send the prior notice, register the claim and represent you before the commercial court through judgment and enforcement.
info@novalegal.sa | Al Sahaba Road, Al-Ishbiliyah District, Riyadh
Conclusion: Filing a Commercial Lawsuit Starts Before Najiz
The success of filing a commercial lawsuit is usually decided before registration: a correct prior notice, complete documents, a statement of claim with all its grounds, and an accurate estimate of the claim value and costs. After registration, the commercial court moves through fixed timelines to judgment and appeal.
The Nova Legal team in Riyadh represents companies and merchants before the commercial courts through our commercial court representation service and our litigation and dispute resolution service. Address: Al Sahaba Road, Al-Ishbiliyah District, Riyadh – Building 2/2 Al Hamra City, Second Floor, Office 202.
