Disputes & ResolutionLegal Fees
Synonyms: Attorney's Fees، Lawyer's Fees، Counsel Fees
Last updated: 2026-09-25
Short Definition
Legal fees are the payment a licensed lawyer receives from the client for advice, advocacy or managing a dispute.
Overview
Legal fees are the payment a licensed lawyer receives from the client for advice, advocacy or managing a dispute. In Saudi Arabia they are set primarily by a written agreement between lawyer and client; if there is no agreement, or it is void or rescinded, the court that heard the case assesses them according to the effort made and the benefit to the client.
They are governed by the Law of Practising Law issued by Royal Decree (M/38) dated 28/7/1422H, as amended by Royal Decree (M/21) dated 26/1/1447H. Article 26 makes agreement the rule and applies court assessment also to subsidiary claims arising from the main case, and Article 27 requires a client who dismisses his lawyer without legitimate cause to pay the full agreed fee unless the court decides otherwise. As amended, Article 18 restricts the right to plead on behalf of others to lawyers registered in the roll of practitioners, with limited exceptions such as a spouse, a relative up to the fourth degree and the statutory representative of a legal entity. Fees charged by a VAT-registered lawyer carry VAT at the standard rate of 15%.
The key practical question: does the loser pay the other side's lawyer? Saudi law has no automatic loser-pays rule for legal fees as in England. The Judicial Costs Law makes the losing party bear the judicial costs owed to the state, without prejudice to the right to claim compensation. A party may claim legal fees as compensation for harm caused by the other side's procrastination in paying what was due; such a claim is heard by the court that issued the judgment, and the assessment is at the court's discretion. The party should therefore request it expressly and prove both payment of the fees and the opponent's procrastination.
⚖️ Legal Basis
Legal fees are governed by Articles 26–28 of the Law of Practising Law issued by Royal Decree No. (M/38) dated 28/7/1422H; Royal Decree No. (M/21) dated 26/1/1447H amended Article 18 on the right to plead and Article 26 on fee setting. Article 13 of the Judicial Costs Law (M/16 dated 30/1/1443H) makes the losing party bear judicial costs without prejudice to compensation claims; Article 73 of the Law of Civil Procedure provides that the court that issued the judgment hears claims for compensation for harm caused by procrastination in paying the rights at issue; and Article 3 allows the court to impose a discretionary penalty on a party who brings a malicious or sham claim.
💡 Practical Example
A flat owner in Riyadh hired a lawyer to claim SAR 70,000 from a former tenant for damage to the unit. The written fee agreement set a fixed SAR 8,000 plus 10% of whatever was actually collected, with 15% VAT added because the lawyer was VAT-registered. The court awarded the owner SAR 60,000, so the lawyer earned 8,000 + 6,000 = SAR 14,000, plus SAR 2,100 VAT, for a total of SAR 16,100. The owner had expressly asked that the tenant be ordered to pay his legal fees as compensation for procrastination, submitting earlier warnings and payment receipts, and the court awarded part of them at its discretion rather than the full amount. Had there been no written agreement and a disagreement arisen, the court would have assessed the fee according to effort and benefit.
⚠️ Common Mistakes
- ✗Agreeing fees verbally — this invites disputes and leaves the court to assess the fee based on effort and benefit.
- ✗Not specifying what the fee covers — such as VAT, judicial costs, expert fees, and the appeal and enforcement stages.
- ✗Assuming the losing opponent will automatically pay your lawyer — there is no automatic rule; you must expressly claim it as compensation and prove procrastination, and the court decides.
- ✗Appointing an unlicensed person to plead — pleading on behalf of others is restricted to registered lawyers, with limited exceptions.
- ✗Dismissing the lawyer mid-case without legitimate cause — the client may owe the full agreed fee unless the court decides otherwise.
🌍 International Differences
Systems differ on shifting legal fees to the loser. In England the general rule is that "costs follow the event", so the loser bears a large part of the winner's legal costs. In the United States the "American rule" prevails: each side pays its own lawyer unless a statute or contract provides otherwise. In Turkey the court orders the losing party to pay the winner a "vekâlet ücreti" based on the minimum attorney fee tariff. The Saudi system is closer to the American rule in principle, with the possibility of claiming fees as compensation for procrastination at the court's discretion.
FAQs
How are legal fees determined in Saudi Arabia?▾
A lawyer's fee and how it is paid are set by a written agreement with the client. If there is no agreement, or it is void or rescinded, the court that heard the case assesses the fee in proportion to the lawyer's effort and the benefit to the client.
Can I claim my lawyer's fees from the other party in Saudi Arabia?▾
The losing party does not automatically pay the other side's lawyer, but you may claim the fees as compensation for harm from procrastination in paying what was due, before the court that issued the judgment, proving payment and procrastination; the court decides the amount.
Who may plead for me in court if not a lawyer?▾
Pleading for others is restricted to registered lawyers, except a spouse, in-law or relative up to the fourth degree, the statutory representative of a legal entity, guardians and waqf administrators in their own cases, and the public treasury officer within his remit.
What happens to the fee if I dismiss my lawyer?▾
A client may dismiss his lawyer, but if the dismissal is shown to be without legitimate cause he must pay the full agreed fee, unless the competent court decides otherwise, under Article 27 of the Law of Practising Law.
Are legal fees the same as judicial costs?▾
No. Legal fees are paid to the lawyer under a private agreement, while judicial costs are levied for the state on claims and requests at up to 5% of the claim value, capped at SAR 1 million, and borne by the losing party.
