Questions on enforcement, notes & financing

1. 01Has the new Enforcement Law come into force?

   Yes. The law and its Implementing Regulation took effect in late October 2026, 180 days after the law was published in the Official Gazette. Transitional rules govern earlier requests: judgments, orders and decisions issued before the law took effect remain valid, and earlier steps do not lapse automatically just because the new law is now in force.

   SourceEnforcement Law, Art. 65 (Umm Al-Qura gazette)Royal Decree approving the Enforcement Law, item 2 (Umm Al-Qura gazette)Enforcement Law Implementing Regulation, Art. 54 (Umm Al-Qura gazette)

   Read moreThe new Enforcement Law: what has changed?Opening an enforcement file under the new Enforcement Law: from instrument to attachment

2. 02Has the new Enforcement Law abolished detention altogether?

   Not across the board. Detention remains available in some cases of direct enforcement, that is, enforcing an obligation to do or to refrain from doing something. The law also keeps criminal penalties for concealing assets and obstructing enforcement. And the previous law's insolvency provisions continue on a transitional basis until a civil insolvency law is issued and takes effect.

   SourceEnforcement Law, Arts. 37 and 50 (Umm Al-Qura gazette)Royal Decree approving the Enforcement Law, item 7 (Umm Al-Qura gazette)

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3. 03Did old paper promissory notes lose their enforceability as soon as the new law took effect?

   No. Promissory notes and bills of exchange issued before the law took effect remain enforcement instruments for one year after it took effect, provided they meet the statutory conditions, even if they were never registered on the national electronic platforms. Check the note's date and status before relying on this rule.

   SourceRoyal Decree approving the Enforcement Law, item 5 (Umm Al-Qura gazette)

   Read moreThe new Enforcement Law: what has changed?Your company’s receivables under the new Enforcement Law

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4. 04What is the difference between an enforcement dispute and a dispute over the debt itself?

   An enforcement dispute concerns the validity of the enforcement instrument, the conditions for enforcing it, or the court's jurisdiction to enforce it. A disagreement over whether the debt is owed at all goes to the body competent to hear the underlying relationship. What counts is the substance of the objection, not whether it is labelled procedural or substantive.

   SourceEnforcement Law, Arts. 4 and 45 (Umm Al-Qura gazette)

   Read moreThe new Enforcement Law: what has changed?Opening an enforcement file under the new Enforcement Law: from instrument to attachment

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5. 05Does filing an enforcement dispute, or a claim that the debt is not owed, stop enforcement?

   Not automatically. Enforcement continues unless the body hearing the dispute or claim orders a stay. A stay of proceedings does not release assets already attached unless the order says so.

   SourceEnforcement Law, Art. 47 (Umm Al-Qura gazette)Enforcement Law Implementing Regulation, Art. 50 (Umm Al-Qura gazette)

   Read moreThe new Enforcement Law: what has changed?Opening an enforcement file under the new Enforcement Law: from instrument to attachment

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6. 06Can a promissory note I signed as security be enforced against me?

   It can be. Describing a note as security does not, on its own, invalidate it. Whether it is payable, and how to challenge it, depends on its terms, whether the debt has fallen due, the contract it secures and the amounts actually owed.

   Read moreThe new Enforcement Law: what has changed?Opening an enforcement file under the new Enforcement Law: from instrument to attachment

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7. 07Enforcement has been sought against me on a note, but I never received what it was given for. What should I do?

   If your objection goes to whether the debt is owed at all, it belongs before the body competent to decide that question, together with a request to stay enforcement where there are grounds. Start by gathering proof that you never received the consideration, along with the contract and the note.

   SourceEnforcement Law, Arts. 4 and 47 (Umm Al-Qura gazette)

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8. 08I paid the creditor directly, but the enforcement request is still open. What now?

   File a proof-of-payment request on Najiz, if you meet the service conditions, and link the receipt to the debt being enforced. A creditor who is paid outside the enforcement process must close the request within one working day of being paid. If the payment itself is disputed, take the appropriate court route.

   SourceEnforcement Law Implementing Regulation, Art. 46 (Umm Al-Qura gazette)

   Read moreThe new Enforcement Law: what has changed?Opening an enforcement file under the new Enforcement Law: from instrument to attachment

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9. 09Can the same debt be collected twice because there are several notes?

   No. Separate genuinely independent debts from notes that document the same debt, and credit every amount already paid. In financing, the Saudi Central Bank's instructions require the lender to return a note once its purpose is fulfilled, and when the relationship is renewed or amended.

   SourceInstructions for Handling Promissory Notes by Financing Entities (Saudi Central Bank)

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10. 10Does the guarantor's liability end once the debtor pays?

    As a rule, yes. The guarantor is discharged when the debtor is discharged from the guaranteed debt, and any partial payment is credited. Check the type of guarantee and the capacity in which it was signed, because an aval on a commercial paper follows its own rules.

    SourceCivil Transactions Law, Art. 603 (Ministry of Justice legal portal)

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11. 11Does a grace period cancel the debt or close the enforcement request?

    No. A grace period is temporary. It takes effect only once approved, not when requested, and only for its stated duration and the specific orders it lifts. Read its terms to see exactly what it covers.

    Read moreOpening an enforcement file under the new Enforcement Law: from instrument to attachment

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12. 12Is a grace period renewed automatically while I keep paying instalments?

    No. Paying does not renew it. Note when it expires, apply for the appropriate renewal in good time with proof of payment, and document any agreement that changes your obligations. Do not assume the grace continues without a fresh approval.

    Read moreOpening an enforcement file under the new Enforcement Law: from instrument to attachment

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13. 13Does a grace period make it possible to obtain new financing?

    Not on its own. A grace period neither guarantees financing nor erases a default. The lender will still examine your credit record, existing commitments and ability to repay, and apply the requirements of the product you want.

14. 14Does my dispute with a finance company go to the enforcement court or to the financing disputes committee?

    That depends on what you are objecting to. An objection to the validity of the note or the conditions for enforcing it is an enforcement dispute. A dispute over the financing or finance-lease contract itself goes to the competent committee where it falls within its jurisdiction, subject to the statutory exceptions.

    SourceEnforcement Law, Art. 45 (Umm Al-Qura gazette)

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15. 15Does a complaint to the Saudi Central Bank stop enforcement?

    Do not assume it does. A regulatory complaint does not suspend a court process. Deal with the enforcement request before the competent court, and apply for a stay if you have grounds backed by documents.

    SourceEnforcement Law, Art. 47 (Umm Al-Qura gazette)

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16. 16Am I entitled to compensation if a lender enforces a note I had already paid?

    Yes, for proven loss. The Saudi Central Bank's instructions make the lender liable for any damage a customer suffers from enforcement of a note whose value had already been paid. The amount turns on the loss proven and its link to the enforcement; there is no fixed sum for every case.

    SourceInstructions for Handling Promissory Notes by Financing Entities (Saudi Central Bank)

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These answers are brief general information. They are no substitute for a review of the facts and documents of a particular matter.