Public Order
Synonyms: public policy، mandatory rules، peremptory norms، overriding mandatory provisions، fundamental legal principles
Last updated: 2026-05-09
Short Definition
Legal principle making certain matters non-derogable, contract clauses violating public order are nullified.
Overview
Legal Basis
The concept of public order in the Saudi real estate framework is based on the provisions of the Basic Law of Governance derived from Islamic Sharia, and the Civil Transactions Law that specifies cases of absolute nullity for violations of public order.
Practical Example
A foreign company signed a commercial building lease in Jeddah containing a clause permitting the use of part of the building for entertainment activity serving alcoholic beverages to a limited audience of foreign employees. When registering the contract on Ejar, the platform refused to approve it because the clause violated public order derived from Islamic Sharia provisions applied in the Kingdom. The company was asked to delete the clause and redraft the contract. The company refused, arguing that the clause applied only to foreigners, but it was determined that Saudi public order applies to all real estate on its territory without exception.
Common Mistakes
- ✗Believing that explicit agreement between the parties permits violation of public order in real estate contracts
- ✗Including clauses susceptible to interpretation as violating public order without prior legal review
- ✗Overlooking the impact of public order on international arbitration clauses when choosing the Kingdom as a seat or governing law
- ✗Confusing fixed public order rules with administrative requirements that may be subject to exceptions
- ✗Failing to recognize that the court can raise a public order violation on its own motion without the parties' request
International Differences
In the UAE, public order is relied upon to refuse enforcement of some foreign judgments particularly those related to usurious interest. In Turkey, the Turkish Code of Obligations and the Private International Law Procedures Code define the concept of public order with detailed provisions. In Egypt, public order plays a pivotal role in refusing enforcement of foreign judgments contrary to Sharia provisions. In the UK, the concept of Public Policy is narrower in scope and less influential on commercial contracts. In the US, Public Policy standards vary from state to state with a trend toward narrowing its scope in international commercial contracts.