Debt Recovery Through Litigation in Saudi Arabia

Nowadays, in a fast-growing and competitive business economic environment, overdue debts can severely impact the cash flows, profits, and ongoing business operations. When friendly negotiation fails to reach a solution, the debt recovery through legal actions becomes an essential step to safeguard your financial dues and rights.  

Sadany & Partners Law Firm, located in Riyadh, has legal staff dedicated to assistcompanies, financial institutions, and individuals in recovering their debts by resorting to the Saudi judicial system. Thanks to our history full of success in debt collection lawsuits, we assist our clients in winning judgments and execute the recoverys rapidly and efficiently.   

If you desire to hire a law firm to recovery your debts, Sadany & Partners is your trusted legal partner, which will help to reach the settlement serving your interests.  

Understanding Debt Recovery Litigation in Saudi Arabia

To recover the overdue debts, you must follow up on the unpaid debts officially byinitiating a lawsuit before the competent court. The Saudi law, which combine principles of Islamic Law (Sharia) and positive law, grants the creditors strong rights to recovery the outstanding debts by taking legal action.   

The debt recovery lawsuits usually include: 

• Overdue commercial invoices

• Loan defaults

• Bounced checks

• Breach of commercial contracts

• Unpaid profits of partnership or unsettled fees of agency 

• Overdue installments or payments of real properties or construction projects. 

Even if amicable discussions or claims fail to reach a satisfactory outcome, litigation is often the optimal option for safeguarding your rights and dues. 

The Debt Recovery Litigation Process

Sadany & Partners provides the legal advice and guidance to its clients at every phase of the proceedings of debt recovery, including: 

1. Preliminary Assessment

The first step we take is to review the debt documents, including the invoices, deeds, cheques, letters, and payment terms, because this helps us to evaluate the position of the lawsuit and to find the best path of legal actions.  

2. Demand Letter

We often send claim letter to the debtor demanding him to pay the debt and warning that we will take the legal actions. In this step, we may reach a settlement without proceeding with the litigation.

3. Filing a Lawsuit 

When the debtor does not respond, we usually initiate a case before the competent court or arbitration center.

4. Court Proceedings 

We advocate for our clients at every stage of the litigation process, including attending court hearings, providing evidence and supporting documents and defending the client to win the final judgment.

5. Judgment & Award Enforcement 

Immediately after the issue of the judgment, we seek to execute it by resorting to the Saudi Enforcement Courts, and the execution procedures typically include: 

• Freezing the bank accounts

• Confiscating the assets

• Preventing the debtor from traveling. 

• Auctioning seized items to fulfill the debt. 

We have a skilled legal team that helps you to execute the judgment and recover your debt.

Expertise Across Industries 

We work with clients from different industries, such as: 

• Financial Services and Banking

• Construction and Real Estate

• Trade and Distribution

• Manufacturing and Industrial Services

• Hospitality and Tourism

• Technology and Telecommunications

Each sector has its own set of documents and risk size. Our advocates developed litigation strategies tailored to the specific requirements of your business. 

Why Clients Trust Sadany & Partners for Debt Recovery

Clients trust Sadany & Partners, as a leading law firm specialized debt repayment through litigation because of: 

• Vast Litigation Experience: A track record of successful debt recovery lawsuits.

• Well-Though and Useful Counsel: Honest evaluations of recovery potential with actionable, business-oriented advice.

• Effective Execution: Quick enforcement of the rulings through resorting to enforcement court. 

• Clarity and Transparency in Reporting: Regular updates and clear communication at every phase.   

• Affordable Solutions: Sound evaluation of attorney fees and enforcement expenses to increase the amount to be recoveryed as much as possible.  

Whether you're claim for significant debt or satisfying an overdue personal loan, our team can handle this process easily to reach the desired outcome.

Tips for Improving Your Chances of Successful Debt Recovery 

The litigation is deemed an efficient and helpful approach, but the creditor should boost the opportunity to obtain his dues through: 

• Keeping the well-documented and signed agreements for each transaction for future reference. 

• Ensuring invoices are correctly prepared and confirmed.

• Keeping detailed records of correspondence and payment reminders. 

• Taking prompt actions — the earlier the steps are taken, the higher the opportunity of successful recovery.

Sadany & Partners also helps the clients with preventive recommendations on enhancing the legality of their contracts and credit policies to minimize future recovery risks.

Contact a Leading Debt Recovery Litigation Lawyer in Saudi Arabia

If you have overdue debt requiring legal actions, confide in Sadany & Partners Law Firm to defend your rights and ensure recovering your dues.

Get in touch with us today to book a consulting meeting with our professional debt recovery advocate.  

• Phone: +966 11 512 8065

• Email: info@sadanypartners.com

• Address: 4th Floor, Office 403, Building no. 7459, Al-Olaya Street, Al-MuroojDistrict, Riyadh, Saudi Arabia