Article 12 of the Saudi Investment Law

المادة 12 من نظام الاستثمار

The article allows anyone against whom the Ministry of Investment has issued a penalty decision to challenge it before the competent court within 30 days of being notified of the decision.

Official text (Arabic)

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

يجوز لمن صدر بحقه قرار من الوزارة بعقوبة التظلمُ منه أمام المحكمة المختصة خلال (ثلاثين) يومًا من تاريخ إبلاغه بالقرار.

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 12 explained in plain English

This article grants a right of judicial challenge against penalty decisions. Anyone against whom the Ministry has issued a penalty decision may challenge it before the competent court.

The key points of the article:

Scope: Ministry decisions that impose a penalty, which under Article 11 are a warning, a fine of up to SAR 300,000 (which may be doubled for repetition) and cancellation of registration, imposed by the committee formed by decision of the Minister.
The time limit: 30 days, starting from the date the person is notified of the decision, not from the date it was issued.
The forum: the competent court; the article does not name a particular court.

It is therefore important for the investor to keep proof of the date it was notified of the decision, and to act before the time limit expires. The article does not state the effect of missing the deadline or whether the challenge suspends enforcement of the penalty; for those, refer to the relevant laws.

Article 13 follows, which provides that the provisions of the law do not prejudice the Kingdom's obligations under the international agreements in force to which it is a party. Anyone against whom a penalty decision has been issued would do well to consult, early and within the time limit, a lawyer who specializes in administrative matters and foreign investment.

Practical example

A foreign company in Khobar is notified of a decision by the Ministry of Investment imposing a fine for breaching the registration provisions. If it considers the decision incorrect, it may challenge it before the competent court, provided it does so within 30 days of being notified of the decision.

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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