Court orders Saudi company to pay SR 38m to Chinese firm for rights violation
The Enforcement Court in Jeddah has ordered a Saudi gold exploration company to pay more than SR 38 million in contractual rights to a Chinese metals company. The company was quick to pay the rights of the Chinese firm upon receipt of the enforcement notification.
The enforcement order was based on an arbitral award handed down by a Chinese international arbitration committee.
The Chinese company filed an electronic application to the Enforcement Court in Jeddah to enforce the arbitrators' award, which confirmed the Chinese company’s right to a sum of SR 38,368,509.
The enforcement judge ordered the Saudi company to make payment within five working days from the date it received notification or else the court would take further measures and apply penalties provided for in the enforcement rules and regulations.
The Enforcement Court carries out decisions and awards issued by a foreign country on the basis of reciprocity and in compliance with the provisions of international treaties and conventions.
The enforcement of such awards improves the business environment, strengthens the legal and judicial basis of the economy in the Kingdom, encourages foreign investment and provides a secure business and economic environment.