1. Introduction. – 2. Research Methodology. – 3. The Legal and Regulatory Framework. – 4. The Practice of Bankruptcy Law in Saudi Courts. – 5. Jurisdiction and Organization of Commercial Courts. – 6. Established Practice in Bankruptcy Adjudication. – 6.1. Procedural Established Practice in Bankruptcy Judiciary. – 6.2. Substantive Established Practice in Bankruptcy Judiciary. – 7. Conclusions.
Background: Recent years have seen a growing interest in bankruptcy law, both domestically in the Kingdom of Saudi Arabia and globally. A significant and concrete step in the larger legal and economic changes in the Kingdom of Saudi Arabia was the passage of the bankruptcy law in 2018. A key step is to understand how these relatively new rules are enforced in Saudi courts, as this offers insight into the practical legal processes that companies seeking to enter the Kingdom’s market and scholars studying commercial law need to consider. This study aims to explore how bankruptcy law is implemented in the Saudi legal system and to outline the strategies Saudi judges use to interpret and enforce it when resolving conflicts.
Method: The study employs an inductive and analytical approach to examine judicial practices and rulings under Saudi Arabia's bankruptcy law and relevant legal texts. These methods enabled the collection and systematisation of relevant materials, including legal texts and bankruptcy cases stored in the Judicial Scientific Portal, which were carefully examined by top judicial authorities. The method used facilitated the division of bankruptcy cases into two distinct groups: procedural and substantive matters, drawing on the framework underpinning the Saudi Bankruptcy Law. The advantage of this two-pronged approach is that it thoroughly examines judicial rationales in both procedural and substantive areas before developing recommendations.
Results and Conclusions: Examining and analysing the cases and procedures used in Saudi bankruptcy courts confirms the significance of uniform judicial application of bankruptcy law and the crucial role of specialised bankruptcy chambers in promoting procedural efficiency and consistency. The study highlighted that the unified judicial application of the bankruptcy law and its regulations should be reflected in upcoming legal updates to ensure consistency with judicial interpretation and the system's objectives. The research suggests that continuing to publish court rulings and decisions on bankruptcy cases contributes to understanding the applicable law and to developing solutions for emerging bankruptcy cases.