Statute of Limitations

The statute of limitations (in Saudi terminology, the period after which a claim is ‘not heard’ because of the passage of time) is the legal period after which a court will no longer hear a claim for a right if the defendant denies it and invokes the lapse of time. Under Saudi law the right itself is not extinguished; only the court action against a denying debtor is barred, so a debtor who acknowledges the debt remains bound to pay it. The Civil Transactions Law (Royal Decree M/191 dated 29/11/1444H, in force since 16 December 2023) sets these periods in Articles 295–306: a general period of ten years (Art. 295); five years for renewable periodic rights such as the rent of real property (Art. 296(b)); and, for compensation claims arising from a harmful act, three years from the date the injured party learns of the harm and of the person liable, with an absolute cap of ten years from the harm (Art. 143). The period starts when the right falls due (Art. 299) and is counted in Hijri years (Art. 2), so five Hijri years are roughly 54 days shorter than five Gregorian years. In practice, every rent instalment has its own limitation clock starting from its due date. The period is suspended while a genuine obstacle prevents the claim, such as good-faith negotiations (Art. 300), and it is interrupted by the debtor’s acknowledgment or by a court claim, even one filed before a court lacking jurisdiction (Art. 302), after which a new period of equal length begins (Art. 304). Parties cannot agree to shorten or lengthen the period (Art. 305), and the court does not apply it on its own motion — the debtor or an interested party must raise it (Art. 306). Landlords and property managers should therefore pursue arrears well before five Hijri years pass from each due date.