Sources reviewed
The Saudi legal rule
The default is payment before receipt unless the parties agree otherwise. If the purchase order grants thirty days from receipt, identify precisely what the order treats as receipt before calculating the due date. [1]
What the records establish
Match each invoice to its order, delivery note and bank entry. If a parent placed the order and an affiliate received the goods, identify who bought them and on whose behalf the warehouse signed. Where the commercial court has jurisdiction, a written, due debt for a fixed sum may qualify for a payment order. Give the debtor a written demand at least five days before applying and specify the intended filing date. [4]
Likely defence and next step
A return or an unallocated payment can explain the difference between ledgers. Send a running balance, invite line-specific objections and deduct credit notes before demanding payment.
Applicability on 2026-10-30
Published on 19 June 2023, the law took effect on 17 December 2023. [2][3] It applies to commercial transactions where compatible with their nature and no special commercial provision governs. For earlier events, check whether a party invokes a conflicting applicable provision or judicial principle, or a time bar had already begun to run before commencement. [2]
Sources
- نظام المعاملات المدنية | Saudi Civil Transactions Law 345
- مرسوم الإصدار ونفاذ النظام | Promulgation and commencement Royal Decree M/191, clauses V–VI; Civil Transactions Law, art. 721
- أم القرى | Official Gazette Cabinet Resolution 820, publication on 1444-12-01 AH
- نظام المحاكم التجارية | Commercial Courts Law 16, 67–68
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