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Crowdfunding Fintech Technology

CMA: Regulatory Framework for Equity Crowdfunding Approved

The Capital Market Authority Announces the Approval of the Regulatory Framework for Equity Crowdfunding

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CMA: Regulatory Framework for Equity Crowdfunding Approved #Saudi_Arabia

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Overview

The Capital Market Authority (“CMA”) Board issued its resolution approving amendments of the following:

It is worth noting that these amendments shall be effective as of the date of their publication on September 27, 2022.

Who is involved in these amendments?

These amendments are applicable to:

  • Capital Market Institutions
  • Companies that hold Financial Technology Experimental Permit

Main Differences

The amendments include regulating share offerings through capital market institutions that are authorized to carry out arranging activities in the course of carrying out securities crowdfunding.

Also, the amendments comprised setting the requirements for custody of clients’ money received by capital market institutions that are authorized to carry out arranging activities in the course of carrying out securities crowdfunding, and opening and operating investment accounts.

This comes after the CMA has published the draft Regulatory Framework for Equity Crowdfunding and the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center, for public consultation for a period of (45) calendar days.

What's New About CMA FinTech Lab?​

In order to understand and assess the impact of new technologies in the KSA’s capital market, as well as to help transform the Saudi market into an intelligent financial center, CMA has designed the FinTech Lab which welcomes local as well as international firms wishing to test new digital solutions in a ‘live’ environment with a view to deploying them in the KSA in the future.

The updated framework will also support the objectives of the FinTech strategy by making the Kingdom one of the world’s leading countries in the field, and it will contribute to the economic empowerment of the Saudi society and its citizens by promoting further innovations in technology-based capital market.

Conclusions

It is expected that the amendments shall reflect on enabling the Capital Market Institutions that are authorized to carry out arranging activities to offer of securities via Equity Crowdfunding platforms, as well as the custody of the clients’ money in the course of carrying out securities crowdfunding.

Feel free to share your thoughts and inquiries with us on this update or the capital market via email or a meeting.

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Categories
Fintech Technology

Saudi Central Bank Updates Its Regulatory Sandbox Framework
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Saudi Central Bank Updates Its Regulatory Sandbox Framework

Saudi Central Bank Updates Its Regulatory Sandbox Framework #Saudi_Arabia

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Overview

The Saudi Central Bank (SAMA) announced that it has updated the Framework of its Regulatory Sandbox. The step was taken as part of SAMA’s efforts to achieve several national strategic goals through the promotion of the Regulatory Sandbox’s involvement in the Financial Sector Development Program (FSDP), a key objective of the Saudi Vision 2030, which is aiming to develop the kingdom’s economy, diversify its sources of income, enable financial institutions to support the growth of the private sector, and allow new companies to provide their own array of financial services.

What is Regulatory Sandbox?

SAMA launched the Regulatory Sandbox initiative back in 2018 to garner the participation of local, regional and international FinTech institutions and companies seeking to take advantage of current and new technologies to provide innovative financial products and services to Saudi markets.

SAMA’s Sandbox directly connects with the Saudi Vision 2030 which endeavors to reinforce economic growth and investment activities. Vision 2030 has been further developed into 12 Executive Programs, which includes the ‘Financial Sector Development Program’ (FSDP). The FSDP program seeks to develop the financial industry as a diversified and effective financial services sector to support the development of the national economy by stimulating savings, finance and investment by, inter alia, enabling financial institutions to support private sector growth.

To this end, SAMA’s Regulatory Sandbox aims to attract local and International FinTech businesses that are looking to leverage existing or new technology in an innovative way to deliver new financial products or services to KSA markets, or improve business processes. The target audience includes, but is not limited to, KSA and international Start-ups, FinTechs, established financial sector firms, and professional services companies partnering with or providing support to such businesses.

Why is Regulatory Sandbox so important?

In order to understand and assess the impact of new technologies in the KSA’s FS market, as well as to help transforming the Saudi market into a smart financial center, SAMA has designed a Regulatory Sandbox which welcomes local as well as international firms wishing to test new digital solutions in a ‘live’ environment with a view to deploy them in the KSA in the future.

What's New About SAMA Regulatory Sandbox?​

The Central Bank pointed out that the updated framework of the Regulatory Sandbox is open for both local and international applicants to apply be they entrepreneurs, non-regulated companies or existing regulated entities, the key differentiator of the updated framework is to move from a cohort based approach to an Always Open approach which will give greater flexibility to those applying. 

The updated framework will also support the objectives of the FinTech strategy by making the Kingdom one of the world’s leading countries in the field, and it will contribute to the economic empowerment of the Saudi society and its citizens by promoting further innovations in technology-based financial services.

When Does the Regulatory Sandbox Framework start?

SAMA will allow FinTech companies to submit Regulatory Sandbox applications under the updated framework as of the 6th of September 2022.

Days
Hours
Minutes
Seconds

Upcoming Events

The Central Bank in cooperation with Fintech Saudi, will hold on this September 5, 2022, at 12:00 PM, an introductory workshop on the updated regulatory framework for the legislative experimental environment.

Fintech Saudi will be hosting a virtual workshop in which members of the Regulatory Sandbox team at SAMA will introduce the new framework to an open audience.

We invite you to attend the workshop where the following aspects will be covered:
1. Enhancements to the framework
2. Walk through the lifecycle from Application to Testing
3. Q&A with the Sandbox team.

Conclusions

We believe that this SAMA Regulatory  Sandbox Framework update will leverage the Financial Technology sector in KSA where it will make financial sector firms and technology companies applying for SAMA license way easier and feasible comparing to status quo.

As #1 FinTech law firm, Knowledge Pioneers has been deeply involved in such updates in the legal environment of the Financial Technology sector.

If you are interested in the FinTech arena in the KSA, please fill out our FinTech Assessment Survey in order to have one of FinTech experts contact you promptly.

For further information, please do not hesitate to Contact Us.

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Categories
Commercial Contracts Dispute Resolution Litigation Real Estate Technology

NAJIZ: Digital Transformation In The Judicial System

Judicial Fees
Judicial Fees
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NAJIZ: Digital Transformation in The Judicial System

Najiz offers fast and efficient digital services to all ministry clients in order to enhance customer experience and satisfaction. #Saudi_Arabia.

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Overview

In continuation of the Kingdom’s unremitting efforts in the digital transformation of government services, we are talking today about “Najiz” system, which is deemed to be a qualitative leap in the history of the Saudi judiciary and the legal profession.

What is Najiz?

Najiz is a judicial services platform which provides all Ministry of Justice (MoJ) services through one unified platform.

Najiz offers fast and efficient digital services to all MoJ clients in order to enhance customer experience and satisfaction. 

How to access Najiz?

To reach the platform, just click on Najiz.

Objectives of Najiz

His Excellency the Minister of Justice and Chairman of the Supreme Judicial Council Sheikh Dr. Walid bin Muhammad Al-Samaani launched the “Najiz” system in 177 first-instance courts throughout the Kingdom with the aim of:

  • Standardizing procedures among all courts
  • Deploying digital transformation in building institutional justice
  • Speeding up settlement of disputes

What are Najiz Services?

There are more than 134 services and procedures.

In this article, we review the most prominent services and procedures.

Judiciary
  • Filing Lawsuits
  • Filing Statements of Claim
  • Court Hearings Schedules
  • Inquiries on Lawsuits
  • Filing Execution Case
  • Filing Applications
Business

  • Activate the facility account

  • Deactivate facility account

  • Submit Facility’s Applications for Execution

  • Corporate Matters

Licensing
  • Licensed Lawyers Directory
  • Licensed Marriage Officials Directory
  • Application for Law Practitioner License
  • Application for Marriage Officials License
  • Application for Renewal of Law Practitioner License  
Power of Attorney
  • Issuance of an electronic Power of Attorney
  • Termination of Power of Attorney
  • Acknowledgements
Dates
  • Inquire about the dates of the judicial facilities 
  • Inquire about the dates of the mobile notaries
  • Book an appointment for mobile notaries
  • Appointment booking service
Verification
  • Verify Social Status
  • Verify mortgage
  • Verify a judgment deed (first degree – appeal)
  • Verify marriage contract
  • Verify “Furijat” bills
  • Verify a transaction
  • Verify the determination of heirs
  • Verify a Power of Attorney
Real Estate
  • Notarize a mortgage
  • Issue a replacement of a lost/damaged  title deed 
  • Transfer Ownership of Real Estate
  • Verify Real Estate Ownership Status
  • Issue Real Estate Identity
  • Mortgages Management
  • Real Estate Management
  • Update Title Deeds
Personal/Marital Status
  • Guardianship
  • Minor Alimony Assessment
  • Documentation of Marriage, Divorce, and Reversion
  • Documentation of heirs of the deceased
  • Endowment
  • Rehabilitation
  • Inheritance Determination
  • Estate Allocation

Conclusions

The Najez system is considered one of the renewable technical systems of an advanced nature in accordance with the development and acceleration of legislation in the Kingdom in line with the Kingdom’s vision 2030. In this article, we have discussed the most prominent services related to this system and its developments.

For further information, please do not hesitate to Contact Us.

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Categories
Employment

New Judicial Fees

Judicial Fees
Judicial Fees
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New Judicial Fees

New Judicial Fees Mandatory in #Saudi_Arabia.

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Overview

Judicial Fee Law was promulgated by the Royal Decree number (M/16) dated 30/01/1443 Hijri, corresponding to 7 September 2021, and the Cabinet Resolution number (65) dated 23/01/1443 Hijri, corresponding to 31 August 2021, published in the Saudi Gazette on 02 September 2021.

what is a Judicial Fee

A judicial fee is an amount of money to be paid by the Claimant litigant to the competent authority in consideration of the judicial service in the Kingdom of Saudi Arabia as organized under the Judicial Fees Law.

A judicial fee does not include any other payments resulting from the litigation proceedings; such as expert fees.

Objectives of Judicial Fees

Judicial Fee Law is aimed to:

  • Reduce malicious lawsuits
  • Encourage reconciliation between litigants
  • Promote documentation of transactions and contracts

Matters exempted from Judicial Fees

There will be no judicial fee imposed on lawsuits and matters related to:

Family & Personal Status

  • Divorce
  • Khul' (woman’s right to divorce)
  • Alimony/Family Support
  • Child’s custody
  • Legacy Allocation Matters
  • Relevant Appeals & Petitions

Board of Grievance

  • Rights and entitlements established in the laws of the civil and military services and retirement of Public Officers and employees of independent public legal agencies or their successors and beneficiaries
  • Annulment of final administrative decisions filed by those concerned, when the appeal is based on lack of jurisdiction, formal defects, defect in the cause, violation of laws and regulations, error in the application or interpretation of the law, or abuse of authority, including disciplinary decisions and decisions issued by quasi-judicial committees and disciplinary boards. As well as the decisions issued by public interest associations - and the like - related to their activities, and it is considered as an administrative decision the refusal of the management body or its refusal to make a decision that it should have taken in accordance with the laws and regulations
  • Compensation claims filed against decisions or actions of the Administration
  • Disciplinary cases filed by the competent authority
  • Cases related to contracts to which the Administration is a party to
  • Applications for the execution of foreign judgments and judgments of foreign arbitrators
  • Other administrative disputes

Public Order

  • Public Criminal Cases & Relevant Petitions
  • Disciplinary Cases & Relevant Petitions

Bankruptcy

  • Protective Settlement Procedure
  • Financial Restructuring Procedure
  • Liquidation Procedure
  • Protective Settlement Procedure For Small Debtors
  • Financial Restructuring Procedure For Small Debtors
  • Liquidation Procedure For Small Debtors
  • Administrative Liquidation Procedure

Litigation Proceedings

  • Requests for Settlement
  • Requests raised by Opponents and Adjoined Parties

What are the judicial fee rates?

The Court will determine the Judicial Fee as follows:

Debt Recovery Claims

UP TO %5

with a cap of SAR1,000,000 payable by the losing party

Arbitration Award Annulment

UP TO %1

with a cap of SAR1,000,000 payable by the Applicant in case of claim dismissal

Major Applications

SAR10,000

Against each application or request for permission to appeal to the Court of Appeal and the Supreme Court and petitions to review a decision.

Minor Applications

SAR1,000

Against each application made by an ‘interested party’ for copies of documents or court records

No Additional Payments

No additional fee will be payable where:

  • a claim is brought in the court with competent jurisdiction following an earlier court’s decision that it lacked jurisdiction
  • The Court of Appeal overturns a judgement and refers the case back to a lower court

when are judicial fees refunded?

The entirety of the fees shall be refunded in the following events: 

Before First Hearing

%100 OFF

In case of settlement before the first hearing, the fees shall be refunded in full (if paid).

Within First Hearing

%100 OFF

In case of settlement before the judge during first hearing, the fees shall be refunded in full (if paid).

Before Judgement

%75 OFF

In case of settlement after the first hearing and before the judgment, the fees shall be discounted to 25 percent of the judicial fees and the balance shall be refunded (if paid)

After Judgment

%100 OFF

In case of a decision or judgment rendered in favor of the applicant or appellant, the judicial fees shall be refunded in full (if paid).

Civil Claims Associated with criminal proceedings

%100 OFF

In case of the settlement of civil claims raised alongside criminal proceedings regardless of the stage of the case, the judicial fees shall be refunded in full (if paid).

Partial Success

PRO RATA

In the case of partial success on appeal, fees will be refunded on a pro rata basis. 

Who is Exempted from Judicial Fees?

There will be no judicial fee imposed on Parties involved in the following:

  • Employees & their representatives/successors while claiming their entitlements resulted from their Employment
  • Prisoners & Detainees at the time the Judicial Fee is due in Financial matters
  • Ministries & Governmental Agencies

are there alternative solutions?

Saudi Arabia has been recently encouraging parties involved in a dispute to recourse to the ordinary judicial system as the last option. Accordingly, Saudi Arabia has adopted and promoted a number of alternative dispute resolution (ADR) means. We would like to preview the most common ADR means that are as legal and efficient as the ordinary judicial system as follow:

Conciliation (Solh) System

Conciliation is among the most important means of alternative dispute resolution (ADR).

This initiative aims to achieve a major development in providing conciliation services, so that it becomes the socially and economically preferred option for settling various disputes (financial, family, commercial, construction, real property, banking, medical, etc.), by building an integrated system for disseminating the conciliation culture among both natural and legal persons, for various cases and at all stages of the relationship.

Negotiation

Negotiation is among the most important means of alternative dispute resolution (ADR).

Negotiation is a dialogue between two or more people or parties intended to reach a beneficial outcome over one or more issues where a conflict exists with respect to at least one of these issues.

Mediation

Mediation is among the most common means of alternative dispute resolution (ADR).

Mediation is a structured, interactive process where an impartial third party assists disputing parties in resolving conflict through the use of specialized communication and negotiation techniques. All participants in mediation are encouraged to actively participate in the process.

Saudi Arabia has ratified the United Nations Convention on International Settlement Agreements Resulting from Mediation – a mechanism for enforcing mediated settlement agreements in signatory states – and enacted the Commercial Courts Law, which introduced several new measures to improve the efficiency of the judicial system, including making certain claims subject to court-mandated conciliation or mediation.

Arbitration

Arbitration is among the most common means of alternative dispute resolution (ADR).

Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.

The 2012 Arbitration Law and 2012 Enforcement Law (and corresponding executive regulations for such laws), as well as the opening of the Saudi Center for Commercial Arbitration in 2016, are well-publicized measures that have already been taken towards achieving that goal.

Conclusions

For decades, no court fees were payable in Saudi litigation. This may have resulted in many vexatious claims or a party bringing repeated claims to pressure its counterparty. The introduction of court fees will make parties think long and hard before commencing claims that have little merit and will hopefully encourage more parties to resolve their disputes out of court. The idea of accepting this type of fee may not be easy for some people, but we believe as a team who see the corridors of courts as homes that they will greatly improve the case flow mechanism, will improve the services provided, and will greatly speed up the litigation procedures that currently take a long time due to the number of lawsuits submitted every day.

For further information, please do not hesitate to Contact Us.

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Employment

Nitaqat Scheme Update

Ministry of Labor
Employment
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Nitaqat Scheme Update

Overview

Relying on Knowledge Pioneers Law Firm’s sharp focus on most recent legal updates, we are pleased to share with our esteemed clients and business network this highly important business-related legislative amendment. Corporate Practice and Compliance Practice Departments at Pioneers who are pleased to hereby present you highlights and hints on the recent legal update pertaining to Saudi Nationalization Scheme; i.e. Nitaqat Scheme (“Nitaqat”) supported by practical examples, expected issues, and productive solutions.

On 29/3/1441H, corresponding to Oct. 26th, 2019, H.H. Ahmed Bin Salman, ex officio as the Minister of Labor And Social Development issued a ministerial decree number (63717) (the “Decree”). Yet, before addressing complex legal consequences, we would rather checklist a few concepts and basics, right as follows:

What is Nitaqat (نطاقات), a.k.a. Saudi Nationalization Scheme?

officially known as the Saudi nationalization scheme, or Saudization is the most recent policy of the Kingdom of Saudi Arabia implemented by its Ministry of Labor and Social Development, whereby Saudi companies and enterprises are required to fill up their workforce with Saudi nationals up to certain levels.

As part of the Saudi Vision 2030’s reforms, announced in 2016, reducing the number of unemployed Saudi nationals is a key element of the plan. Previously the private sector was largely dominated by expatriate workers from Pakistan, India, the Philippines, and Arab countries such as Lebanon or Egypt.

In its beginning, Nitaqat categorized companies that undertake projects, especially public ones, in Saudi Arabia into three (3) zones; green, yellow, and red.

Under certain standards and requirements, every single company shall be located and might be relocated in a zone where such a company shall be subject to certain consequences. It is noteworthy that the yellow and red zones are specified for companies that have failed to achieve the required Saudization percentage. They are also known as the “unsafe Nitaqat” and such firms are denied full access to the ministry’s services.

Who is involved?

At large, all companies incorporated and organized by Saudi laws are subject to the Decree. However, it mainly confronts companies currently located in Nitaqat yellow zone who will be relocated into the red zone and hold responsibilities for such relocation unless they have positively reacted in a manner compliant with the Decree.

In other words, the ministry’s services are restricted to firms that are in Green Zone and above and that contribute effectively to employing Saudis.

Why is it so important?

This decision aims to stimulate firms in this zone to move to the Green Zone and above, leading to raising their Saudization percentage.

Conclusions

The Ministerial Decree has clearly drawn the road map in this arena of Vision 2030. It was issued in the continuity of the already existing Saudization major plan where the regime extensively strives to provide more job opportunities to Saudi young men and women.

In conclusion, we highly recommend our business network members to take all necessary action to comply with the Ministerial Decree on or before Jan. 26, 2020 corresponding to 01/06/1441H.

Our Corporate Compliance team regularly advises on laws and regulations impacting the business flow and law-compliance issues in the corporate sector.

For further information, please do not hesitate to Contact Us.

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Categories
Construction Insurance

Saudi Central Bank: Construction Insurance is MANDATORY
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Saudi Central Bank: Construction Insurance is MANDATORY

Based on the powers granted to the Arab Monetary Agency –then, and Saudi Central Bank for now– to monitor cooperative insurance companies, it issued its Decree No. 441/187 on 5/8/1441 AH, which has bound contractors in non-governmental sector projects to ensure against hidden defects that might appear in constructions. Such insurance shall remain effective for a period of not less than ten (10) years, starting from the date of project final delivery.

Saudi Central Bank

What is a hidden defect?

To clarify, a hidden defect is any defect that arises in the construction work or its protective elements that may weaken or destabilize the construction due to errors, faults, deficiencies in design, implementation, quality of materials used, or a failure in soil inspection or whatsoever defects pertaining to human involvement.

Therefore, and pursuant to the provisions of this Decree, each non-governmental Employer/Owner will have to engage their contractor(s) through (Baladiبلدي ) service where Employer will have to attach a valid insurance document against hidden defects that might appear in the project(s) involved for a period of no less than ten (10) years starting from the date of project final delivery. Afterward, the Certificate of Occupancy will be issued. For Certificate of Occupancy, the following requirements must be met:

1. Payment of insurance premiums owed to the insurance company.

2. The insurance company to receive “Safety Confirmation Certificate”.

3. The insurance company renders a clear representation of the policy validity.

CONCLUSION

As of Decree date, an effective insurance policy against hidden defects has become a prerequisite for all types of projects and new constructions in the non-governmental sector to obtain a certificate of occupancy with the aim of preserving the material rights of the beneficiaries of those buildings.

 

In case of any inquiries regarding any of the above, we hope that you will not hesitate to Contact Us.

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Commercial Internet Litigation

Commercial Lawsuit is Now TIME-LIMITED
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Commercial Lawsuit is Now TIME-LIMITED

OVERVIEW

The recently-enacted Commercial Court Law issued under Royal Decree No. (M/93) dated 15/08/1441 AH stipulated prescription of financial rights, i.e. the loss of the right to file a commercial lawsuit due to the plaintiff’s delay in filing it. Article 24 stipulates that The following: (As long as there is no special provision for it, the lawsuits that are considered by the court will not be heard after five years have passed from the date on which the claimed right was established unless the defendant acknowledges the right or the plaintiff presents an excuse acceptable to the court).

Coupled with Article (36) of the implementing regulations of the system, which stipulates the following: (If the claimed right arises before the law comes into force, then the period stipulated in Article 14 of the system shall be calculated from the date on which the system comes into effect) as Article (37) of the same regulation stipulates The following: (In the absence of a special text, the period stipulated in Article Twenty-Four of the Law shall take effect from the day on which the debt becomes due for payment).

Since the aforementioned system was published in the official gazette “Umm Al-Qura” on 24/08/1441 H, the implementation of a statute and its implementation will take place after sixty days have passed from the date of the aforementioned publication, ie on the date (24/10/1441 AH); Therefore, the deadline for accepting commercial lawsuits filed by the plaintiff falling within the jurisdiction of commercial courts and arising before the date (10/24/1436 AH) is (on 10/24/1441 AH).

It is necessary for every creditor plaintiff to pay attention and to observe the period of non-hearing of the lawsuit in the consideration of the commercial judiciary, which starts from the date of maturity of the commercial debt until the date of the entry into force of the above-mentioned law.

CONCLUSION

Royal Decree has drawn the road map very clear for Government Agencies that require consultation services to engage experienced Saudi nationals, consultancy offices, and national companies.

This has come in parallel to the Saudization major plan where Government Agencies have been held responsible for reconsideration of their position before the Saudi People since national companies were thereby prioritized.

We do not believe that current contracts conducted by a government agency with a non-Saudi company or office that provides consultancy service might encounter instantaneous termination, even if a given contract entitled the agency to do so. Yet, we highly anticipate that those contracts might not be renewed regardless of the need of the government agency for such service.

If you are a non-Saudi company, branch, or office, and, in the meantime a consultancy service provider of a government agency, or planning to be one, you are highly recommended to look for a Saudi Partner who may enhance your vision and represent your business before the government agency.

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Categories
Litigation

Changes on Implementing Regulations of Execution Law

Financial Crime
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Changes on Implementing Regulations of Execution Law

OVERVIEW

His Excellency the Minister of Justice Circular No. (13/T/8013) was issued on 4/6/1441 AH amending the executive regulations of Execution Law, and the most important amendments are:

First: Removing suspension of the debtor’s electronic services.

Second: Giving the debtor a period of three months before passing a judgment of his imprisonment (obligatory) only if the debt amount or the total debt amounts reach (one million riyals) or more.

Third: The debtor may be released at any time if there are indications that he is serious about settling his financial situation.

Fourth: The limitation of the period of executive detention to a period of three (3) months, renewable according to the judge’s decision after his interrogation.

Fifth: It is not permissible to detain the debtor in the following cases:

If the age of the debtor is (sixty) years or more.

Or if the debtor has minor children and his husband is dead or imprisoned for any reason.

COMMENTS

Because of the aforementioned clarification of the content of the recent amendments to the executive regulations of the implementation system, we recommend and advise our clients to take utmost caution within conducting all dealings with others, especially in financial transactions. We also recommend investigating the accuracy and requesting all supporting documents from others parties to prove their financial capacity, whether they are a natural or legal person. As these documents differ according to the difference between dealing with others.

Based on an extensive study conducted by our lawyers and consultants of the new legal frameworks, we advise our esteemed clients, and before concluding any financial transaction, to examine, verify following documents of other party(s) to your future contracts, for example, but not limited to:

  • Valid ID or CR
  • Valid Contact Details; e.g. mobile number & email
  • Bank statement of the account through which the transaction will be conducted
  • National address
  • Work address
  • Tax number
  • Social Insurance Certificate
  • Qiwa (Saudization) Certificate
  • Zakat Certificate
  • Company's balance sheets of the last three (3) years OR the financial status if it is an establishment.

In addition to the above, we would like to share with you the advice of a number of our consultants to take more than one guarantor or sponsors for the person with whom you intend to enter into a financial transaction, if possible. This gives an additional protection layer to your interests and saves you the long term of litigation and debt collection process where you can collect that debt from a guarantor or sponsor of that original debtor if they fail or refrain from payment.

In case of any inquiries regarding any of the above, we hope that you will not hesitate to contact us immediately.

Related Practices

Infrastructure

Engineering & Construction

Dispute Resolution

International Transactions

Contracts

Joint Ventures

Real Estate

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Construction Real Estate

Idle Land Progam Phase II Kick-off
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Idle Land Program Phase II Kick-off

Phase II of Idle Lands Program has been launched in 17 new cities by the Ministry of Housing

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What is an Idle Land?

Idle lands are vacant or undeveloped plots designated for residential or commercial use and situated within the boundaries of a city as defined by the Saudi Shoura Council back in May 2013 within their regulation that enacted Idle Land Program that is applicable to all urban areas across the country.

What is Idle Land Program?

Idle Land Program charges an annual fee for non-governmental idle lands with sole or Joint ownership with a rate of 2.5% of the land’s actual market value. The Ministry of Housing will use the fee income on housing projects and infrastructure to supply housing solutions and products.

Idle Lands Program Objectives

  • Increasing modern estate supply achieves the balance between supply and demand.
  • Providing residential lots with affordable prices
  • Guaranteeing fair competition
  • Controlling monopoly practices

What is new about the Idle Lands Program?

In phase II, developed lands owned by one proprietor in an approved housing scheme exceeding 10,000 square meters in 17 additional cities, including 5 cities before the end of 2020 will also be liable to pay the fee.

The implementation of this program will start in five cities namely; Medina, Abha, Khamis Mushayt, Taif, and Jizan

  • Medina
  • Abha
  • Khamis Mushayt
  • Taif
  • Jizan
As per studies conducted by the program team, this program will be applied to the rest of the cities during this year 2021, and that it will include an increase in the supply of developed lands.

ILP phase II aims at lands belonging to a single owner in an approved scheme, with a total area of ​​more than 10 thousand square meters.

Saudi Ministry of Housing Tweet

The total of the lands subject to fees in the cities of Jeddah, Riyadh, Dammam, and Makkah has reached 411 million square meters, and the total payment issued by the program since the beginning of its implementation has reached about 5,500 payment orders.

 ,

The total of the lands subject to fees in the cities of Jeddah, Riyadh, Dammam, and Makkah has reached 411 million square meters, and the total payment issued by the program since the beginning of its implementation has reached about 5,500 payment orders.

 ,

Conclusions

Compliance

As a result, landlords subject to Idle Lands Programs are highly recommended to commence developing their idle lands as soon as possible. Otherwise, they are faced with ever-stricter legal requirements and increasing costs of compliance to hold ownership of idle lands.

Appeals

Once fined, a landlord may appeal in writing to a committee formed by a decision of the Minister of Housing, within 60 days from the date he was notified of the fine decision.

Penalties and fines

He shall be punished with an additional fine not exceeding the amount of the fee owed on his land, and this shall not prejudice his obligation to pay the due fee.

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Categories
Employment Employment Counseling Labor Entitlements

Labor Calculator

Labor EOSB Calculator
Labor EOSB Calculator
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Labor EOSB Calculator​

New Labor Benefits Calculator is LIVE in #Saudi_Arabia.

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What is EOSB?

End of Service Benefits (EOSB) is a major labor right, that an employer is committed to once an employment contract has come to an end. The employer is legally bound by the Saudi legislator to pay EOSB to the employee once the employment contract is over, regardless of the fact that the employment was a definite or indefinite term contract.

Therefore, Ministry of Justice (MOJ) launched the new service, “Labor Calculator” in order to facilitate how due labor rights can be calculated in accordance with labor law and its executive regulations.

Labor EOSB Calculator Objectives

  • Accelerating the pace of work and facilitating the judicial procedures handled by the labor courts
  • Shortening and automating the provisions of the Labor Law and its Executive Regulations with regard to labor rights and disputes
  • Ensuring the accuracy of the calculation outcomes related to labor rights

Labor EOSB Calculator Requirements

In the course of obtaining the most accurate outcomes of Labor Calculator, the user shall take into consideration the following data:

  • The start and end date of the employment contract
  • Basic wage
  • The amount of social insurance deduction - if any
  • The number of vacation days due after deducting the number of days consumed - if any
  • The number of overtime hours - if any

How to access Labor EOSB Calculator?

MOJ has managed to make the Labor Calculator easily accessible by all parties involved in an employment relationship that is subject to the Saudi Labor Law; either they are nationals or expatriates.

In order to access the Labor Calculator, the user should follow the steps below:

  1. Visit MOJ website: www.moj.gov.sa
  2. Search within “Electronic Services” tab for “Labor Calculator” service
  3. Click on “Go to the service page” button where the Labor Calculator is located at: https://portaleservices.moj.gov.sa/LaborCalculator/LaborCalculator.aspx
  4. Fill out the data set forth

What makes Labor EOSB so different?

The most important features that distinguish the Labor EOSB Calculator service from the traditional methods used in the past are:

  • List Item
  • Accessibility from anywhere and any time
  • Inclusion of the most important due labor rights
  • Legal elaboration and substantiation of the source and reference of each labor right
  • Piecing all legal requirements together in one single page

Conclusion

In conclusion, we believe the launch of the Labor Calculator is a huge leap in employment relationship management and labor dispute settlement in the Kingdom of Saudi Arabia.

Last but not least, in case further clarification or information is needed, please do not hesitate to contact us.

Ask Us Anything. anytime.