Article 8 of the Saudi Bankruptcy Law
المادة 8 من نظام الإفلاس · الفصل الأول: أحكام عامة
Article 8 refers to the Implementing Regulations the provisions on cross-border bankruptcy procedures.
Official text (Arabic)
This article has not been amended since the law was issued.
تحدد اللائحة الأحكام الخاصة بإجراءات الإفلاس العابرة للحدود.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 8 explained in plain English
This article is short but it concerns an important subject in today's business world: cross-border bankruptcy, that is, bankruptcy procedures connected with more than one country, such as when the debtor has assets or creditors or bankruptcy procedures in another country as well as in the Kingdom.
The article did not set detailed provisions for these cases, but referred to the Implementing Regulations of the Bankruptcy Law to determine these provisions. Anyone facing a bankruptcy case with a foreign element must therefore refer to what the Regulations provide on this, and the text of the Law alone is not enough to know the details.
Any detail concerning the relationship between bankruptcy procedures in the Kingdom and procedures, assets or creditors in another country is therefore referred to the Regulations under this article, without assuming provisions that the text does not contain.
Given the complexity of these cases, anyone facing them would do well to consult a lawyer specialized in international matters and foreign investment, or in commercial and bankruptcy cases.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 8 of the Saudi Bankruptcy Law
Where are the cross-border bankruptcy provisions in Saudi Arabia?
Article 8 of the Bankruptcy Law refers the determination of these provisions to the Implementing Regulations of the Law.
Does the Bankruptcy Law itself regulate the details of international bankruptcy?
No. The article merely refers to the Regulations to determine the provisions on cross-border bankruptcy procedures.
More articles on General Provisions and the Bankruptcy Committee
- Article 1
Article 1 defines the key terms of the Bankruptcy Law, such as debtor, creditor, defaulting debtor, bankrupt, related party and the different bankruptcy procedures.
يقصد بالألفاظ والمصطلحات الآتية -أينما وردت في هذا النظام- المعاني المبينة أمام كل منها ما لم يقتض السياق خلاف ذلك: النظام: نظام الإفلاس. اللائحة: اللائحة التنف
- Article 2
Article 2 lists the seven bankruptcy procedures the Law regulates, from protective settlement to administrative liquidation.
يهدف النظام إلى تنظيم إجراءات الإفلاس، وهي: 1- التسوية الوقائية. 2- إعادة التنظيم المالي. 3- التصفية. 4- التسوية الوقائية لصغار المدينين. 5- إعادة التنظيم المال
- Article 3
Article 3 specifies which entities are regulated entities and requires the competent authority's approval before a request to open any bankruptcy procedure for them is registered.
1- يعد ما يأتي كياناً منظماً في تطبيق أحكام النظام: أ- الشركات المصرفية وشركات التمويل وشركات التأمين وشركات الصيرفة. ب- الأشخاص المرخص لهم بممارسة أعمال الأورا
- Article 4
Article 4 specifies who is subject to the Bankruptcy Law: individuals carrying on commercial, professional or profit-making business, registered companies and profit-making entities, and non-Saudi investors to the extent of their assets in the Kingdom.
تسري أحكام النظام على كلّ من: أ - الشخص ذي الصفة الطبيعية الذي يمارس في المملكة أعمالاً تجارية، أو مهنية، أو أعمالاً تهدف إلى تحقيق الربح. ب - الشركات التجارية
- Article 5
Article 5 sets out the objectives of bankruptcy procedures: enabling the debtor to organize its affairs, treating creditors fairly, maximizing asset value, cutting costs and time, and administrative liquidation when assets are weak.
تهدف إجراءات الإفلاس إلى الآتي: أ - تمكين المدين المفلس أو المتعثر أو الذي يتوقع أن يعاني من اضطراب أوضاعه المالية من الاستفادة من إجراءات الإفلاس، لتنظيم أوضاع
- Article 6
Article 6 gives the court the power to issue the judgments and decisions needed for bankruptcy procedures, supervise their execution, decide their disputes and impose penalties.
تصدر المحكمة الأحكام والقرارات اللازمة لتطبيق الإجراءات المنصوص عليها في النظام، وتتولى الإشراف على تنفيذها، والفصل فيما ينشأ عنها من نزاعات، وإيقاع العقوبات ال
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.