Article 25 of the Saudi Finance Lease Law

This article regulates how the lessor takes back the asset if it is not delivered to it, and distinguishes two kinds of assets:

First: fixed assets. If the leased fixed assets are not delivered in the cases provided in the Law, the lessor may submit an application to the competent court for a judgment to deliver the asset. The application must be decided within a maximum of 30 days of its submission, a short period that reflects the legislator's wish for speedy determination.

Second: movable assets. The lessor may, under the Law's provisions, recover movable assets from the lessee, but on condition that the contract between the parties includes the lessor's right to recover them. Supervision of carrying out the recovery is by specialized companies licensed by the Ministry of Justice under the Enforcement Law.

The difference between the two routes is clear: for a fixed asset the lessor submits an application to the court for a judgment to deliver it, and a movable asset is recovered, if the contract so provides, under the supervision of those licensed companies.

This article is linked to Article 24, which makes the competent court the body deciding disputes arising from applying the Law and its Regulations. It is also linked to Article 26, which punishes anyone who obliterates the data marked on the leased asset or alters its features or descriptions recorded in the relevant register, or sells or mortgages it without the lessor's written consent.

If you are a lessee facing a recovery application, or a lessor wanting to take back your asset, it is advisable to consult a lawyer specializing in enforcement or finance cases.