Securing and collateralizing debts has been a significant
legal issue in the Kingdom of Saudi-Arabia (KSA) for a long time.
Covered by more prominent topics, due to the current COVID Crisis,
the Kingdom has enacted a far reaching reform based on Royal Decree
M/94 dated 15/08/1441 H. (08 April 2020) with deep implications on
a number of businesses from banking and financial services to trade
and commerce. It has opened doors to tackle one of the major
problems of doing business and investing in the Kingdom and can be
expected to have a significant impact on the country's economic
structures.
1. What has been the Issue with Securing Claims in
the Kingdom yet?
KSA's legal system is founded on direct application of
Islamic Law (Sharīʿa). This is complemented by a number
of written laws enacted by Royal Decree, which formally are
derogated by overruling Sharīʿa law and dogmatically
specify and interpret Islamic Law. Sharīʿa principles
are largely restrictive to
