Saudi Arabia collection profile

saudi-bnr

 

Collecting in Saudi Arabia

  • As with all GCC states, late payment is common in Saudi Arabia. In practice, the law does not regulate late payment, while late payment interest is prohibited and collection costs cannot be recovered from the debtor unless a specific agreement has been concluded by the parties. As a result, debtors will often try to negotiate discounts in exchange for prompt payment.

  • Local legal action is very slow, costly and uncertain overall, since the courts are not bound by a system of precedent and have considerable discretion in applying Shariah principles to specific circumstances. In addition, several weeks or months may separate each hearing and the courts hardly abide by time management requirements.

  • Insolvency laws in the Middle East are not as sophisticated as in other regions and the nonexistent company rescue culture in Saudi Arabia illustrates this point.

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    saudi-arabia

    Saudi Arabia

    Collection complexity

    severe-2


    Collection relating to

    Payments
    $-4
    Court
    proceedings
    Gav-4
    Insolvency
    proceedings
    Arrow-4
     

    Saudi Arabia

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