Article 5 of the Saudi Judicial Costs Law
المادة 5 من نظام التكاليف القضائية
The Article imposes costs on a person seeking annulment of an arbitral award of 1% of the amount awarded if their request is rejected, with a maximum of SAR 1 million.
Official text (Arabic)
This article has not been amended since the law was issued.
تُفرض على دعوى بطلان حكم التحكيم تكاليف قضائية بما نسبته (?1) من قيمة المبلغ المحكوم به على مدعي البطلان، إذا حكم برفض طلبه، وبحد أعلى مليون ريال.
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 5 explained in plain English
This Article concerns a case to annul an arbitral award, which is a case filed by a party asking to void an award issued by an arbitral tribunal. The Article sets a special rule on judicial costs for it:
- The percentage: 1% of the amount awarded in the arbitral award.
- Who bears it: the party seeking annulment.
- The condition: that their request is rejected.
- The maximum: SAR 1 million.
The Article ties the imposition of these costs to the annulment case being rejected, and does not address by its text the situation where it is accepted. The apparent aim of the rule is that someone who challenges an arbitral award without success bears a reasonable cost linked to the value of the award.
Note that the basis here is the amount awarded in the arbitral award, not the value of the claim in the annulment case. It is preceded by Article 4 on additional costs of 25% when a case is heard again after being struck out, treated as if not filed, or ruled inadmissible for not being properly drafted, and followed by Article 6, which regulates the case of an intervening party and the distribution of costs when there are multiple parties.
Before filing a case to annul an arbitral award, you are advised to consult a lawyer specialized in arbitration and commercial cases to assess the position and cost.
Practical example
An arbitral award was issued requiring a contracting company in Dammam to pay SAR 5 million, and it filed a case to annul it. If its case is rejected, judicial costs of 1% of the amount awarded are imposed on it, that is SAR 50,000. If the amount awarded were SAR 150 million, the costs would not exceed SAR 1 million.
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 5 of the Saudi Judicial Costs Law
What are the fees for a case to annul an arbitral award?
Costs of 1% of the amount awarded are imposed on the party seeking annulment if their request is rejected, with a maximum of SAR 1 million.
When are costs for an arbitration annulment case imposed?
They are imposed if judgment is given rejecting the request of the party seeking annulment, according to the text of the Article.
What is the maximum for the costs of an arbitration annulment case?
The maximum is SAR 1 million.
More articles on Fees for Filing a Claim
- Article 3
The Article imposes judicial costs on a case of no more than 5% of the value of the claim with a maximum of SAR 1 million, and refers the criteria for assessing them to the Implementing Regulations.
تفرض تكاليف قضائية على الدعوى بمبلغ لا يزيد على ما نسبته (?5) من قيمة المطالبة، وبحد أعلى مبلغ مليون ريال. وتحدد اللائحة معايير تقدير التكاليف القضائية والضوابط
- Article 4
If a case is struck out, treated as if not filed, or ruled inadmissible for not being properly drafted and is then heard again, additional costs of 25% are imposed, borne by the plaintiff.
إذا قررت المحكمة شطب الدعوى، أو حكمت باعتبارها كأن لم تكن، أو بعدم قبولها لعدم تحريرها؛ فتفرض تكاليف قضائية إضافية في حال نظرها مجدداً بما يعادل نسبة (?25) من ت
- Article 6
The Article imposes separate costs on the case of an intervening party seeking judgment for themselves, and spreads costs among multiple plaintiffs or defendants according to each one's share of the claim.
دون إخلال بما ورد في المادتين (السابعة) و(الثامنة) من النظام: 1- تفرض تكاليف قضائية مستقلة على دعوى الخصم المتدخل طالباً الحكم لنفسه. 2- في حال تعدد المدعين أو
- Article 9
If a request changes the value of the case, up or down, its costs are calculated on the new value, while the costs set for the request itself remain.
إذا ترتب على الطلب تغير في تقدير قيمة الدعوى سواء بالزيادة أو النقص، فتُحسب التكاليف القضائية للدعوى بناء على تقدير القيمة الجديدة لها، وذلك مع عدم الإخلال بالت
- Article 10
No new costs are imposed on a case if a ruling of lack of jurisdiction is made and the case is brought before the competent court, or if the judgment is quashed and the case sent back.
لا تفرض تكاليف جديدة على الدعوى في أي من الحالتين الآتيتين: 1- إذا حكم بعدم الاختصاص وأقيمت الدعوى أمام المحكمة المختصة. 2- إذا قضت المحكمة المختصة بنقض الحكم و
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.