New Enforcement Law (1): General Features and Enforceable Instruments

An overview of the new Enforcement Law issued by Royal Decree No. (M/237): its effective date, new terms, the jurisdiction of the Enforcement Court, enforceable instruments, the limitation period and when an enforcement request terminates.

General Features of the New Enforcement Law

• The Enforcement Law was issued by Royal Decree No. (M/237) dated 3/11/1447H.
• The Law was published in the Official Gazette (Umm Al-Qura) on 14/11/1447H.
• The Law consists of sixty-five articles divided into seven chapters.
• The Law replaces the previous Enforcement Law issued by Royal Decree No. (M/53) dated 13/8/1433H, along with its amendments, and repeals all provisions that contradict it.
• All judgments, orders, and decisions issued prior to the Law's entry into force shall remain valid in accordance with the provisions applicable at the time of their issuance.
• The provisions of the Law shall not apply to enforcement dispute cases in respect of which final judgments were issued prior to its entry into force.
• Enforcement courts shall execute decisions and orders issued by quasi-judicial committees.
• As an exception, bills of exchange and promissory notes issued prior to the Law's entry into force, provided they meet statutory requirements (excluding the requirement of registration on national electronic platforms), shall be deemed enforceable instruments for a period of one year from the Law's effective date.
• The provisions governing precautionary attachment under Chapter Two of the previous Enforcement Law (Royal Decree No. M/53 dated 13/8/1433H) shall remain in force until such provisions are transferred to the Law of Civil Procedure (Royal Decree No. M/1 dated 22/1/1435H). The Minister of Justice shall take necessary actions regarding their continuation and amendment through the Implementing Regulations.
• The provisions relating to insolvency under Chapter One of Part Five of the previous Enforcement Law shall remain in force until a separate civil insolvency law is issued and implemented. Enforcement courts shall adjudicate insolvency claims, and such judgments shall be subject to appeal, with appellate judgments not subject to cassation. The Minister of Justice shall regulate their continuation through the Implementing Regulations.
• Clause (Third) of Royal Decree No. (M/15) dated 27/1/1443H has been amended to provide that enforcement circuits shall execute decisions or orders issued by exempt quasi-judicial committees in which a government entity is a party.
• The application of this Law shall not prejudice the continued enforcement of:
  1. Royal Decree No. (M/158) dated 11/11/1441H regarding the exemption of military personnel actively engaged in combat from travel bans and imprisonment.
  2. Clause (Second) of Royal Order No. (69377) dated 7/11/1443H.

Effective Date and Implementing Regulations

• The Law shall come into force after (180) days from the date of its publication in the Official Gazette.
• The Implementing Regulations shall be issued within (180) days from the date of issuance of the Law and shall come into effect concurrently with it.

This is in accordance with Articles (64–65) of the Law.

Key Terms and Newly Introduced Entities

The first chapter ("General Provisions") introduces several definitions, including:

• Competent Administration: The administrative unit within the Ministry or the court responsible for carrying out enforcement procedures as stipulated in the Law and its Regulations.
• Competent Authority: A public authority legally authorized to perform functions related to enforcement.
• Supervisory or Registration Authority over Assets: A public authority responsible for supervising or registering ownership of assets, whether movable or immovable, including financial regulators and capital market authorities.

Jurisdiction of the Enforcement Court

• Except for criminal penalties and matters under the jurisdiction of administrative courts (Board of Grievances), the Enforcement Court is responsible for supervising enforcement procedures, carrying out compulsory enforcement, adjudicating enforcement disputes, and issuing related judgments, orders, and decisions.
• Without prejudice to Article (9), the court verifies whether the enforcement instrument meets statutory requirements without examining the underlying substantive right.
• If multiple authorities issue attachment orders over a debtor's assets, the garnishee must notify the authority issuing the subsequent attachment of the prior one.
• As an exception to jurisdictional rules, where multiple attachments arise from judicial and/or administrative authorities, all assets shall be deemed attached for all enforcement claims, and the authority that first issued the attachment shall oversee the process, including sale and distribution of proceeds.

This is in accordance with Articles (4–6) of the Law.

Enforceable Instruments

Chapter Three sets out the enforceable instruments. Article (7) provides that compulsory enforcement may only be carried out on the basis of an enforceable instrument for a due and specified right. These include:

• Final judgments, orders, and decisions, including those subject to immediate enforcement.
• Arbitral awards.
• Settlement agreements and authenticated conciliation documents.
• Bills of exchange and promissory notes registered on national electronic platforms.
• Cheques.
• Authenticated contracts and acknowledgments.
• Foreign judgments and instruments, subject to Article (9).
• Documents granted enforceable status by law or Council of Ministers' resolution.

The Implementing Regulations shall specify the relevant procedures.

Limitation Period for Enforcement

Under Article (11), and without prejudice to other applicable laws, an enforcement request based on an enforceable instrument shall not be accepted if more than (10) years have passed since the due date.

Termination of an Enforcement Request

Under Article (43), an enforcement request shall terminate in the following cases:

• Fulfillment of the right under the enforceable instrument.
• Proven absence of the debtor's assets (subject to objection).
• Completion of all enforcement procedures and lapse of the prescribed period after the last action.
• Impossibility of enforcement (subject to objection).
• Withdrawal of the request by the creditor.
• Release of the debtor from the obligation.

The creditor retains the right to reinitiate enforcement where legally permissible, and the Implementing Regulations shall determine the detailed procedures.

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