Administrative Judiciary: New regulations for enforcement services and prevention of conflicts of interest

The Administrative Judiciary Council in the Kingdom of Saudi Arabia has approved a new set of regulations governing the use of enforcement service providers, in a move aimed at strengthening governance in the administrative enforcement sector and enhancing the efficiency of the judicial system. This step complements the comprehensive development underway at the Administrative Judiciary (Board of Grievances), in line with the objectives of the Kingdom's Vision 2030 to achieve swift justice and ensure absolute transparency.

The context of judicial development and the importance of the decision

These controls are of paramount importance in light of the digital and procedural transformation underway at the Board of Grievances, as the system seeks to involve licensed private sector entities in enforcement processes to expedite the restoration of rights and reduce litigation time. Regulating the relationship between judicial departments and enforcement service providers is the cornerstone of protecting the rights of all parties and ensuring that interests do not conflict, thereby strengthening the investment environment and increasing confidence in administrative judicial procedures.

Limiting services to licensed entities

The new regulations explicitly stipulate that enforcement services are restricted to entities and individuals holding the required licenses approved under the Enforcement Law. Article Three emphasizes that no enforcement service may be referred to unlicensed entities, with two specific exceptions to ensure operational flexibility

• Agreement of the Parties: If the implementing parties agree on a specific service provider, the judicial department may authorize this choice, provided that it complies with the regulations.
• Unavailability of a licensed provider: In the event that a licensed service provider is not available, the department may refer to an unlicensed provider, provided that he/she is granted a temporary license by the competent authority.

Integrity standards and conflict of interest prevention

To ensure the highest degree of impartiality, the regulations established strict restrictions to prevent conflicts of interest. Service providers and their staff are prohibited from fulfilling any request related to themselves, their spouses, relatives, or in-laws up to the fourth degree . The prohibition also extends to participating in auctions they are tasked with managing, or undertaking any action that could conflict with their current or potential interests, thus eliminating any suspicion that might compromise the integrity of the implementation process.

Professional commitments and financial guarantees

The regulations require service providers to have official offices within the Kingdom and to maintain strict confidentiality regarding data and information, prohibiting its disclosure. Regarding asset protection, the regulations grant the judicial department the authority to request an financial guarantee from the custodian or court-appointed treasurer, not exceeding 5% of the value of the assets under custody, or the submission of a valid insurance policy covering professional errors, to safeguard the rights of beneficiaries in the event of any negligence.

Wage assessment and license termination

Regarding the regulation of financial rights, the rules stipulate that the judicial department shall determine the "fair market rate" for service providers, except in cases where an agreement is reached between the parties involved or in cases referred to the Support and Liquidation Center. The regulations also address cases of license suspension or cancellation, obligating the service provider to liquidate its operations within a period not exceeding 60 days, to ensure that the interests of litigants are not disrupted.