Law of Commercial Courts

Purpose and scope

• Sets the jurisdiction of the commercial courts and their procedures, so that disputes between traders and companies are decided faster and by specialised judges.
• Commercial courts generally hear disputes between traders arising from their commercial business, disputes between partners in companies, and claims under commercial laws such as companies, bankruptcy and commercial intellectual property, within the limits set by the law and its regulation.
• The Law of Procedure before Sharia Courts applies where there is no special text.

Key rules, rights and obligations

• Procedures are mostly electronic: filing, exchange of memoranda, notification and remote hearings.
• The parties may agree on particular procedures for litigation or evidence that do not breach public order, and their written agreements are respected.
• The case is managed on a timetable; the court may require documents and defences by set dates, and late submissions may be refused in some cases.
• For some claims the regulation requires the defendant to be notified in writing before filing; skipping this may make the claim inadmissible.
• The court hears urgent requests such as precautionary attachment and freezing orders where a right may be lost.

Violations, penalties and common problems

• Filing a commercial dispute in the wrong court, or without the prior notice, is a common waste of time.
• Neglecting the dispute clause in commercial contracts, such as the chosen court or arbitration and the governing law, invites disputes over jurisdiction.
• Not keeping correspondence, invoices and statements of account weakens a trader's evidence.
• Vexatious claims or procedural delay may lead to fines and compensation.

Procedures and key deadlines

• Commercial claims are not heard five years after the right arose, unless the defendant acknowledges it or the court accepts an excuse (Article 24).
• Judgments are appealed within the statutory period from receipt, then challenged in cassation where the law allows.
• A final judgment is enforced through the enforcement court, and provisional enforcement may be sought where the law allows.

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.