Saudi upholds foreign rulings on $34 mln payments to Malaysian, Chinese firms
A Saudi Enforcement Court in the capital Riyadh has enforced an award by the International Court of Arbitration at the International Chamber of Commerce in Paris, ordering a private Saudi university to pay more than $24 million to a Malaysian company.
The enforcement is based on Article 11 of the Enforcement Law, and on the provisions of the New York Convention.
The Malaysian company had applied to the Riyadh Enforcement Court to enforce the arbitral award that affirmed its right to the amount. Subsequently, the Saudi court issued a decision requiring the private Saudi university to pay the amount within five days as of the notification date.
This comes as Saudi courts across the Kingdom are obligated to the Kingdom’s agreements with a number of global legal entities to enforce foreign rulings.
The Saudi Ministry of Justice has announced a number of rulings in the past few weeks and restored payments in billions of dollars after applying the foreign enforcement law.
A Saudi court in Jeddah has also ruled against a local company and ordered it to pay 38 million Saudi riyals ($10 million) to a Chinese company after the two sides ran into a trade dispute.
Jeddah court ruling
The Saudi Ministry of Justice said that the Jeddah Court of Execution issued its ruling against a Saudi gold mining company and committed it to pay the amount in favor of the Chinese gold mining company.
According to information published by the ministry on its website, the court based its decision on the view of the Chinese international arbitration committee in the dispute between the two parties, and ordered its implementation on the basis of Article 12 of the Saudi implementation system, which states that the provisions of arbitration committees issued by a foreign country have to be abided in the Kingdom.