How to Sue a Company in Saudi Arabia: A Practical Guide

Step 1: Identify the type of dispute

The route depends on what the dispute is about:

• Your salary, end of service or other employment rights: this is a labor dispute. It starts with amicable settlement at MHRSD, not with a lawsuit. See How to File a Labor Complaint.
• Unpaid invoices, supply contracts, subcontracts or other business dealings between companies: these are generally heard by the commercial courts under the Commercial Courts Law.
• A debt backed by an executive instrument, such as a cheque, a registered promissory note, a judgment or an arbitral award: you may be able to skip the lawsuit and go directly to the enforcement court. See Debt Collection in Saudi Arabia.
• A contract with an arbitration clause: if the clause is valid and the defendant relies on it, the court will not hear the dispute.

Step 2: Check the time bar

Filing time limits depend on the claim and the applicable law. An acknowledgment of the right or an excuse accepted by the court may matter, but do not rely on an exception. Check the deadline and act promptly.

Filing time limits depend on the claim and the applicable law. An acknowledgment of the right or an excuse accepted by the court may matter, but do not rely on an exception. Check the deadline and act promptly.

Step 3: Prepare the evidence

• the contract, purchase order or quotation accepted in writing;
• invoices and proof that each one was delivered;
• delivery notes, timesheets, measurement sheets or completion certificates;
• the statement of account, ideally signed by the company;
• emails and WhatsApp messages confirming the work, the amounts or the promise to pay;
• the company's commercial registration details.

A statement of account or an email in which the company admits the amount is often decisive. It can also count as an acknowledgment for the time bar.

Step 4: Send a written demand

Before filing, send a clear written demand with the amount, the basis and a deadline. It often produces payment or a settlement. If it does not, it shows the court that you gave the company a chance to pay.

The Commercial Courts Law also allows mediation or reconciliation to be required before certain claims are filed. Check whether it applies to your claim before you file.

Step 5: File the claim

Claims are filed electronically, with the statement of claim and supporting documents. Under the Commercial Courts Law, the claimant is expected to submit a complete case file at the outset.

Electronic litigation may allow documents and submissions to be handled remotely. Check the court's directions for your case.

Example: A Dammam steel supplier delivered materials worth SAR 380,000 to a contractor in Jubail. The contractor signed the delivery notes and a statement of account showing the full balance, then stopped answering calls. The supplier's claim is based on the delivery notes, the invoices and the signed statement. The statement of account also counts as the contractor's acknowledgment of the debt.

Step 6: Judgment, appeal and enforcement

• Appeal rights depend on the judgment, the type of claim and any valid agreement affecting finality. Check eligibility and the applicable deadline before assuming that an appeal is available.
• Once the judgment is final and unpaid, it is enforced through the enforcement court. See Enforcing a Judgment in Saudi Arabia.

For companies being sued

Check the time bar, any arbitration clause, and whether the claimant actually performed what it claims for. Raise defects or disputed quantities in writing, with specifics. Be careful with statements of account and emails: they can amount to acknowledgments of the debt.