Article 18 of the Saudi Commercial Courts Law

المادة 18 من نظام المحاكم التجارية · الباب الثاني: الاختصاص

The article permits the commercial court to decide separately on a plea of lack of subject-matter jurisdiction within a period not exceeding 20 days from the date of the plea.

Official text (Arabic)

This article has not been amended since the law was issued.

للمحكمة أن تفصل استقلالاً في الدفع بعدم الاختصاص النوعي في مدة لا تتجاوز (عشرين) يوماً من تاريخ الدفع.

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 18 explained in plain English

This article deals with the plea of lack of subject-matter jurisdiction, which is an objection a party raises that the case is not of the type of cases the commercial court has jurisdiction over. The cases the court has jurisdiction over are defined in Article 16, such as disputes of merchants and company and bankruptcy cases.

The article gives the court the power to decide on this plea separately, that is, to issue a special decision on jurisdiction before going into the substance of the case, instead of postponing deciding it until the judgment on the merits. The wording of the article is permissive ("the court may"), so it is not obliged to do so in every case.

But if the court chooses to decide separately, it must do so within a period not exceeding 20 days from the date of the plea. The aim of this period is to settle the question of jurisdiction quickly, so that the dispute does not drag on over a procedural matter before reaching the substance of the right.

The practical effect is that a party who believes the case filed against it is not commercial can raise a plea of lack of subject-matter jurisdiction, and may obtain a decision on this plea within a short period. The article does not state what follows from accepting or rejecting the plea, nor the means of objecting to the decision.

This article is connected to Article 17, which regulates local jurisdiction. To assess whether your plea has a basis, it is advisable to consult a lawyer who specializes in commercial cases.

Practical example

A case was filed against Ahmed before the commercial court concerning a dealing he believes is not commercial. Ahmed raised a plea of lack of subject-matter jurisdiction, and the court decided to decide it separately, so it must then issue its decision within 20 days from the date the plea was submitted.

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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