Overdue business rents waived by Saudi court

If a contract obliges one of the parties to carry out a task, which cannot be completed on time due to the pandemic, the court can temporarily suspend the implementation of the obligation. (SPA)
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Updated 19 January 2021
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Overdue business rents waived by Saudi court

  • The new regulations cover construction contracts, supply contracts, and the like, which have been affected by the pandemic

RIYADH: The General Assembly of the Saudi Supreme Court has ordered the waiving of overdue rents on businesses hit by the coronavirus disease (COVID-19) pandemic, and called for a review of such contracts between tenants and owners.

The steps have been taken in view of the circumstances caused by the pandemic, wherein an obligation or contract cannot be implemented without unusual losses.

The president of the Supreme Court, Khalid bin Abdullah bin Muhammad Al-Luhaidan, approved the decisions backed by 32 members of the assembly, Okaz newspaper reported.

Authorities have set conditions that have to be met before a case can be considered for review under the new regulations.

If a contract was concluded before the commencement of the preventive measures announced in the wake of the pandemic, then the impact was direct and unavoidable. If in such a case, an affected party was not compensated or did not reach a deal to mitigate the impact of the health crisis, then it qualifies for a review and the new regulations will then take effect, said legal sources.

The Supreme Court said a competent court will issue its verdict based on facts and circumstantial evidence, and may order amendments to a contract.

It also said the new provisions will be applicable to tenancy contracts and movable properties affected by the pandemic.

It clarified that if, due to the pandemic, a tenant was unable to use the leased property, in whole or in part, the court would reduce the rent as much as the usually intended benefit was reduced.

A lessor, meanwhile, does not have the right to terminate the contract if a tenant is late in paying rent for the period during which it was impossible to fully or partly use the property due to the pandemic.

HIGHLIGHT

The Supreme Court said a competent court will issue its verdict based on facts and circumstantial evidence, and may order amendments to a contract.

The new regulations also cover construction contracts, supply contracts, and the like, which have been affected by the pandemic.

If the pandemic causes an increase to the cost of materials and labor wages, etc., the court shall increase the value of the contract while ensuring the obligor can afford to bear the expense. The obligee, upon increasing the obligation, has the right to request the termination of the contract. If the increase in the cost of materials is temporary, the court reserves the right to temporarily suspend the contract.

If the pandemic causes a shortage of material in the market, the court can reduce the quantity to the extent it deems sufficient to protect the obligor from harm.

Moreover, if the shortage of materials is temporary, the court can temporarily suspend the contract if the person obligated to it is not severely affected by this suspension. If he is harmed, he may request termination of the contract. If the materials were not available at all, leading to the impossibility of implementing the contractual obligations or some of them, the court will terminate the clauses that are impossible to implement upon the request of one of the parties to the contract.

If a contract obliges one of the parties to carry out a task, which cannot be completed on time due to the pandemic, the court can temporarily suspend the implementation of the obligation. If the other party fears unusual damage due to the suspension, he may request termination of the contract.

In addition, the court also stressed the need to carefully assess the damages on a case-to-case basis, and that one or more experts should do the assessment. While assessing damages, it should be made clear what losses were incurred directly due to the pandemic and had nothing do to with seasonal upswing in certain activities.

The Supreme Court explained that a court is bound, when considering cases arising from contracts and obligations affected by the pandemic, not to apply penalty clause or fines in whole or in part — depending on the case.

In the event that a contract includes a clause of exemption from liability for one of the contracting parties when an emergency or force majeure occurs, the condition has no effect, and the party that breaches the obligation must provide evidence that the pandemic was the reason for the breach.

The affected contracts that are not covered by the provisions of this principle shall be subject to the legal and statutory litigation principles, said the court.

Commenting on the decision, Talal Albotty, the regional director of the Central Region, Salama Insurance Co., said there is a type of insurance called “suspension of operations” because of continuous epidemics, and falls under property insurance.

“This type of insurance can be found in European countries and some Asian countries but it is not applicable in Saudi Arabia,” he told Arab News. “The insurance against projects does not exist because when the project stops, insurance stops.”

Regarding the rise in prices of commodities, or the increase in prices because of pandemics and suspension of imports, a condition must be added stating that the value of property or project must increase by 10-25 percent, he added.

“Now most reinsurance companies around the world stopped offering insurance related to pandemics and contagious diseases in most countries, including COVID-19, because their impact was huge and the companies sustained huge losses,” he said.

Saudi lawyer Reem Alajmi said the resolution aims to treat and remedy the losses incurred by parties to the contract in terms of obligations.

“The parties could not fulfil their obligations because of a lack of sufficient resources or suspension of working hours during the pandemic. Fulfilling the obligation fully or partially was difficult because COVID-19 pandemic was a force majeure,” she told Arab News.

According to Alajmi, the effects or damage caused by the pandemic must not be covered by other laws. “Proving the occurrence of damage is the responsibility of the plaintiff and the defendant based on evidence submitted to the court,” she added. “The contracts and obligations are amended accordingly.”

 


Built by hand, rooted in history: National Historical Palace in Taif is one man’s tribute to Saudi heritage and Islamic history

Updated 11 May 2025
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Built by hand, rooted in history: National Historical Palace in Taif is one man’s tribute to Saudi heritage and Islamic history

  • Built by Majid Al-Thabiti, the site blends Islamic history with contemporary design, rooted in the symbolism of the number seven
  • Spanning 70,000 sq. meters, the palace features seven museums, seven facades, seven gates and almost 7 million stones cut and laid by the man himself

MAKKAH: In the heart of Wadi Qarn in Taif governorate, one man’s vision has resulted in one of Saudi Arabia’s most striking heritage landmarks: the National Historical Palace for Islamic Civilization.

Built by Majid Al-Thabiti, the site blends Islamic history with contemporary design, rooted in the symbolism of the number seven.

In an interview with Arab News, Al-Thabiti said: “The number symbolizes perfection and completeness in several Qur’anic verses, including the seven heavens, the seven earths and the seven shaded by God in his shadow, among others.”

The palace includes flooring adorned with colored stones and inspired by the historical art of Sadu, an intangible cultural heritage recognized by UNESCO.  (SPA)

The project was born out of Al-Thabiti’s strong will. He believed in his dream and devoted his effort, time and energy to bring it to life.

Spanning 70,000 sq. meters, the palace features seven museums, seven facades, seven gates and almost 7 million stones cut and laid by the man himself.

The museums offer distinct cultural and education experiences. Exhibits cover Islamic architecture, local heritage, plastic arts and sculpture, rare collections, astronomy, military history documenting the unification of the Kingdom and an agricultural museum featuring seeds mentioned in the Holy Qur’an.

The palace includes 600 square meters of flooring adorned with colored stones and inspired by the historical art of Sadu, an intangible cultural heritage recognized by UNESCO.

Al-Thabiti said that he personally cuts, shapes and stacks the stones himself. “The manual labor is what gives the project its true spirit, as every corner bears (my) imprint, effort and dedication,” he added.

He used seven types of stone sourced from across Saudi Arabia, including basalt, quartz and shale. His attention to detail is reflected in features such as hand-shaped facades, floor mosaics inspired by Sadu art and stonework colored in seven hues that mirror the Kingdom’s geological diversity.

Majid Al-Thabiti used seven types of stone sourced from across Saudi Arabia, including basalt, quartz and shale. (SPA)

Highlights at the palace include an Abbasid-style minaret with a water fountain in honor of Zubaida, the wife of Harun Al-Rashid; an observatory used to track the crescent moon; and stone engravings of Saudi megaprojects like NEOM and The Line.

The site also includes engravings on stone of the Kingdom’s military vehicles, such as a fighter jet and ship.

Al-Thabiti also built a 700-meter sports track along the banks of Qarn valley, a stable for purebred Arabian horses, as well as replicas of symbolic gates like Makkah Gate, Taif Gate and King Abdulaziz Islamic Gate, with stones from Mounts Al-Nur, Thawr and Uhud. Other exhibits, like Diriyah and Yawm Badina (The Day We Began), commemorate key moments in Saudi history.

According to Al-Thabiti, his goal is to transform the palace into a cultural and educational destination that celebrates the Kingdom’s history and heritage.

“We possess a great civilizational legacy and a deep-rooted history. It is our duty to present it to the world in the finest way. This palace is the beginning,” he said.
 


Ancient terrace farming technique shapes Asir’s agricultural heritage

Updated 4 min 7 sec ago
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Ancient terrace farming technique shapes Asir’s agricultural heritage

  • Together, the thumalah and mughayyid systems stand as a testament to early innovation sustaining life in one of Saudi Arabia’s most challenging landscapes

 

RIYADH: For centuries, the people of Saudi Arabia’s Asir region have cultivated food on steep mountain slopes using stone terracing systems.

They began with the construction of stone retaining walls known locally as “thamayil,” the Saudi Press Agency reported.

Each individual wall, called “thumalah,” is anchored into bedrock and can rise two to six meters in height.

They serve as critical infrastructure for mountain agriculture by creating level growing surfaces on otherwise impossible terrain.

Each individual wall, called “thumalah,” is anchored into bedrock and can rise two to six meters in height. (SPA)

“The thumalah represents a stone containment system designed to capture sloping mountain terrain,” Ahmed Al-Bariqi, an architectural heritage researcher, said in an interview with the SPA. “After building the stone barrier, the enclosed space is filled with a mixture of clay, soil and rocks to create a flat, arable surface suitable for both farming and habitation.”

Local builders adapted to their surroundings, often reinforcing these structures with juniper and sidr tree trunks, as well as massive stones to withstand the pressure of heavy seasonal rains.

Water management is equally sophisticated. The “mughayyid” regulates irrigation and controls flooding by channeling water flow between terraced fields.

The “mughayyid” regulates irrigation and controls flooding by channeling water flow between terraced fields. (SPA)

“Ancient builders displayed remarkable engineering precision in the mughayyid’s construction,” Al-Bariqi has said in his book “Antiquities and Heritage in Bariq Governorate.”

He added: “Square or elongated stones formed the base structure, while carefully polished flat stones were placed at the top, precisely leveled to allow water to flow at calculated rates between terraces.”

Positioned at strategic elevations, the mughayyid retains optimal water volumes while preventing destructive flooding that could compromise the entire terrace system.

Terraces were reinforced by stone retaining walls known locally as “thamayil.” (SPA)

These terraces do more than support agriculture. According to Dr. Ghaithan bin Jurais of King Khalid University, they reflect a deep-rooted civilization in Asir dating back thousands of years.

“These structures preserve soil resources, establish clear property boundaries between neighboring farms, and historically served as recognized markers of family and tribal land ownership,” he said.

Together, the thumalah and mughayyid systems stand as a testament to early innovation sustaining life in one of Saudi Arabia’s most challenging landscapes.
 


Saudi, British foreign ministers discuss regional and international developments

Updated 10 May 2025
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Saudi, British foreign ministers discuss regional and international developments

  • Two ministers also discussed Saudi-UK relations

RIYADH: Saudi Foreign Minister Prince Faisal bin Farhan on Saturday spoke with his British counterpart David Lammy, the Saudi Press Agency reported.

The two ministers discussed Saudi-UK relations, as well as regional and international developments and the efforts being made in this regard, SPA added.

The call came on the same day as Prince Faisal's meeting with Iranian foreign minister Abbas Araghchi in Jeddah.


Saudi minister meets with UNIDO director-general

Updated 15 min 44 sec ago
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Saudi minister meets with UNIDO director-general

During his official visit to Denmark this weekend, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef met with Gerd Muller, the director-general of the United Nations Industrial Development Organization.

The Saudi Press Agency reported that the two men “discussed ways to deepen the strategic partnership between the Kingdom and the organization in a way that supports the goals of sustainable industrial development.”

Alkhorayef also held bilateral meetings with leaders of several leading Danish companies in the industry and mining sectors, according to the SPA, to discuss “joint investment opportunities, as well as the incentives offered by the Kingdom to investors.”


Crown prince holds phone calls with King of Bahrain, Emir of Kuwait

Updated 10 May 2025
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Crown prince holds phone calls with King of Bahrain, Emir of Kuwait

RIYADH: Saudi Crown Prince Mohammed bin Salman spoke on the phone with King Hamad bin Isa Al-Khalifa of Bahrain and Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah on Saturday, the Saudi Press Agency reported.

During the calls, the crown prince reviewed relations between the Kingdom and Bahrain and Kuwait, SPA added. 

They also discussed a number of issues of common interest.