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.”

 


Czech president begins official visit to Saudi Arabia

Updated 03 January 2025
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Czech president begins official visit to Saudi Arabia

JEDDAH: Czech President Petr Pavel arrived in Jeddah on Thursday as part of his official visit to the Kingdom. The leader was welcomed at King Abdulaziz International Airport by Prince Saud bin Mishaal bin Abdulaziz, deputy governor of Makkah province. The welcoming committee also included Ali bin Mohammed Al-Qarni, deputy secretary of Jeddah governorate; Maj. Gen. Suleiman bin Omar Al-Tuwaireb, director of Jeddah Police, and Ahmed Abdullah bin Dhafer, director-general of the Royal Protocol Office in Makkah.


Traditional Al-Sadu pattern forms integral part of the Saudi Arabia’s cultural fabric

Updated 03 January 2025
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Traditional Al-Sadu pattern forms integral part of the Saudi Arabia’s cultural fabric

  • Council of Ministers designate 2025 as Year of Handicrafts 

RIYADH: The craft of Al-Sadu is alive across the Kingdom — not only in the depths of the Badia, where the art originated, but also in cities, houses, festivals, exhibitions, events, and art and creative galleries.

Al-Sadu is a popular cultural and civilizational symbol that embodies the distinction of the people of the Kingdom and the Arabian Peninsula.

The “traditional weaving of Al-Sadu” was included in 2020 on UNESCO’s Representative List of the Intangible Cultural Heritage of Humanity. A new logo inspired by Al-Sadu has been launched for the Riyadh Expo 2030.

The Saudi Council of Ministers designated 2025 as the Year of Handicrafts, in order to highlight traditional Saudi crafts and craftsmen.

The raw materials used in Al-Sadu are abundantly found in the Kingdom’s desert. They include goat hair, wool from sheep, and camel fuzz. 

Bedouin women mastered the craft, and it was utilized in building Bedouin tents and meeting the needs of families with furnishings such as bedspreads and covers.

The Al-Sadu process goes through several phases. It starts with cutting the wool, sorting it, and then washing it using certain substances, such as soap or ash, to rid it of any plant matter or thorns.

The material is then dried, spun into yarn, and then dyed in natural colors extracted from plants and trees’ peels and roots, such as saffron and henna. Traditional Al-Sadu colors are black, white, red, and brown.

The pieces are then decorated with embroidery, ornaments, and creative art paintings of geometric patterns such as rectangles, circles, triangles and other distinctive forms, many of which symbolize details and connotations associated with the Bedouin.

To knit the threads and weave these unique pieces, craftswomen use the spindle, the loom, and wooden equipment such as the menfash, which is a nail-padded wooden weaving tool used to tease the wool after collecting, washing and drying it. This step is followed by the spinning process, which turns the wool into the spun yarn used in the remaining weaving stages.

The Al-Sadu weaving craft enjoys great significance in various regions of the Kingdom, including Jouf, where many artisans and productive families make unique Al-Sadu products.

Al-Sadu artisans are supported by the Jouf Municipality and governmental and non-governmental sectors, including the Maghazil Al-Sadu Association, which organizes many training programs for craftswomen, as well as exhibitions and programs aimed at marketing and familiarizing people with the art.

Dr. Hiam bint Mubarak Al-Buhairan, the association’s chairperson on the board of directors, said: “Al-Sadu is a symbol of Jouf and the Kingdom, and a national and international resource.

“The association works on protecting, developing, documenting and achieving the sustainability of Al-Sadu, for present and future generations.”

Al-Buhairan said that the association’s goals included providing professional opportunities for talent; raising awareness in the fashion industry; advising those interested in fashion; providing educational and training opportunities; supporting researchers; and contributing to the development of the sector.

The King Abdulaziz Women’s Society for Social Development in Jouf provides Al-Sadu craftswomen with support and training as part of the Made in Saudi project.


Saudi Arabia, Pakistan to enhance maritime partnership at AMAN-25

Updated 02 January 2025
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Saudi Arabia, Pakistan to enhance maritime partnership at AMAN-25

  • Pakistan Navy chief Adm. Naveed Ashraf highlights the strong bond between Royal Saudi Naval Forces and the Pakistan Navy

JEDDAH: Saudi Arabia and Pakistan are united in their commitment to safeguard regional and global waters, using decades of naval collaboration to confront threats and foster stability.

This enduring partnership will take center stage at AMAN-2025, a multinational exercise in Karachi aimed at promoting peace and enhancing cooperation among regional and global navies.

With the participation of Saudi Arabia, the event is scheduled to take place from Feb. 7 to 11 in the capital of Sindh province on the Arabian Sea coast with the aim to also present a united front against terrorism and maritime crimes.

Speaking to Arab News, Pakistan’s Chief of the Naval Staff Adm. Naveed Ashraf highlighted the strong bond between the Royal Saudi Naval Forces and the Pakistan Navy, describing it as an “enduring maritime brotherhood.”

“The two navies have several forums for mutual interaction on issues ranging from training to information sharing and logistics. We regularly conduct exercises at sea — foremost being the Naseem Al-Bahr — seminars and training of personnel to enhance the RSNF’s potential to remain a formidable force in the Arabian Gulf and beyond,” Ashraf said.

The admiral underscored the evolution of the AMAN series since its inception in 2007, noting the exponential growth in the level and number of participants, which makes the upcoming edition distinct.

“In the last edition of 2023, Pakistan hosted 50 nations, and this time we expect even more participation from navies across the globe,” he said, adding that the former International Maritime Conference, previously an adjunct to AMAN, has now evolved into the AMAN Dialogue to allow more pragmatic, practitioner-focused discussions between naval leaders from regional and extra-regional navies on maritime security issues.

Ashraf explained how the Pakistan Navy aligns naval strategies and operational practices during such exercises, especially with increasing international participation.

“One of AMAN’s key objectives is to improve interoperability with regional and global navies. For that, we use an operational language that all participants can understand,” he said. “Collective understanding of naval strategies and operational practices is developed during planning phases and conferences held prior to the exercise.”

Emphasizing the role of AMAN-25 in fostering maritime security and stability in the Indian Ocean, he said: “Key objectives of AMAN are to foster regional and extra-regional cooperation to maintain good order at sea, enhance interoperability, act as a bridge between regions, share experiences, understand each other, and exhibit united resolve against terrorism and maritime crimes.”

Ashraf said that the understanding developed during these exercises helps organize collaborative efforts to ensure maritime security.

“In my plain view, AMAN offers a platform to showcase one’s concerns, capabilities, and willingness to cooperate,” he said.

Commenting on the effectiveness of AMAN in addressing piracy, terrorism, and other maritime crimes, Ashraf said that the AMAN Dialogue provides a forum for sharing awareness, experiences, and strategies to counter such threats.

“A significant number of harbor and sea exercises provide opportunities to improve the capacity of participating nations’ teams to combat maritime crimes effectively,” he said.

Discussing the inaugural AMAN Dialogue and its anticipated outcomes, Ashraf noted that the event has evolved from the International Maritime Conference into a practitioner-focused exchange of views.

“The dialogue seeks to promote shared understanding of maritime security issues, challenges confronting the region, and their linkages to the blue economy. It also deliberates on the efficacy of existing mechanisms for maritime cooperation and the need for innovative solutions to address evolving challenges at sea,” he said.

With maritime threats continuing to evolve, the Pakistan Navy employs technological advances to enhance interoperability with regional and extra-regional navies. Ashraf highlighted the transformative effect of technological innovation on naval warfare.

“We are paying focused attention to leveraging technology to achieve better combat readiness. That is the only way to remain effective against evolving threats. Regarding interoperability, we maintain operational linkages and information-sharing mechanisms with many countries through bilateral and multilateral arrangements, such as the Joint Maritime Information Coordination Center,” he said.

Addressing concerns about maritime pollution and climate change, the admiral said that AMAN-25 would prioritize sustainable practices at sea.

“Climate change and maritime pollution are areas of critical concern. These two issues will receive focused attention during AMAN Dialogue discussions,” he said.

On Pakistan Navy’s bilateral and multilateral agreements beyond the exercise, Ashraf said the force has a long history of cooperation with countries worldwide, even before AMAN’s inception in 2007.

“We have bilateral engagements with many navies through expert-level staff talks, training from basic to advanced levels, and exchange visits of key leadership. We became part of the Combined Maritime Forces in 2004 and have significantly contributed to collaborative security at sea,” he said.

Speaking of his vision for future maritime security amid emerging challenges such as cyber threats and artificial intelligence in warfare, Ashraf warned of the risks posed by disruptive technologies falling into the hands of non-state actors.

“I assess that threats at sea will range from ‘low-cost, high-impact’ technology to conventional weapons coupled with significant cyberattacks. That is why I say that future maritime security will greatly depend on collaborative efforts, where early warning will become a decisive factor,” he said.

Ashraf reiterated the Pakistan Navy’s commitment to maintaining deterrent capabilities against traditional and non-traditional threats. “Pakistan Navy, envisioned as a technologically adaptive military, will maintain its deterrent capability while also participating in regional and international efforts to maintain stability at sea.”

Highlighting AMAN-25’s focus on securing sea lines of communication, Ashraf emphasized the critical role of the Pakistan Navy in safeguarding these economic lifelines. Recognizing the Indian Ocean as a vital artery for global trade, including energy shipments, he said AMAN provides a platform for practical exercises, professional exchanges, and intellectual discourse on maritime security challenges in the region.

“The significance of sea lines of communication is part of the discussions during AMAN, as we alone depend 95 percent on the sea for our commerce. Regional maritime security patrols and participation in CMF’s task forces signify our role in safeguarding these economic lifelines,” he concluded.

Under the theme “Secure Seas — Prosperous Future,” this year’s AMAN Dialogue will address security challenges in the Indian Ocean, including strategic competition, regional conflicts, and piracy, as well as narco-trafficking, and the use of force by non-state actors.

The exploitation of ocean resources, climate change, and emerging technologies such as AI and unmanned systems are transforming the security landscape, posing risks to global trade and economic development.

The dialogue will focus on key themes such as maritime security in the Indian Ocean, perspectives on maritime security and cooperation, the blue economy, as well as the challenges and opportunities presented by emerging technologies.

These discussions will emphasize the need for collaboration to ensure a stable and prosperous maritime future.


How AI is driving innovation in event management and urban development in Saudi Arabia

Updated 02 January 2025
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How AI is driving innovation in event management and urban development in Saudi Arabia

  • AI technologies are central to the Kingdom’s mega-projects, enhancing personalized services, transport, and entertainment
  • From autonomous transport to real-time event coordination, AI communication tools are enhancing efficiency and user engagement

RIYADH: Artificial intelligence is poised to play a transformative role in Saudi Arabia’s urban development, event management and visitor experiences, particularly as the Kingdom prepares to host major global events like the FIFA World Cup 2034.

AI technologies are already central to the Kingdom’s megaprojects, including NEOM and Qiddiya, and are positioning Saudi Arabia as a global leader in innovation and smart city development.

From autonomous transport systems to real-time event coordination platforms, AI-driven communication tools are enhancing efficiency and user engagement in many sectors, particularly sports and entertainment.

“The Saudi Pro League has implemented AI-powered tools like OptaVision to enhance on-field analysis and deepen fan and sponsor engagement,” Amsal Kapetanovic, country manager at Infobip KSA, a communication platform specializing in AI solutions, told Arab News.

“The Saudi Company for Artificial Intelligence has also launched SportNative, an AI-driven sports product suite that optimizes operations and harnesses the full potential of the current sports ecosystem.”

The impact of AI was evident in Riyadh on Dec. 21 when the boxing rematch between Oleksandr Usyk and Tyson Fury featured an experimental fourth judge powered by AI, designed to eliminate bias and human error in scoring.

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Beyond enhancing sports, AI is being used to manage large crowds at events, reduce queuing times, and improve navigation, enhancing experiences for visitors.

“AI-powered systems can provide personalized recommendations, real-time translations, and seamless navigation for international visitors,” Kapetanovic said.

In Saudi Arabia's northwest, the NEOM smart city project is incorporating AI to redefine urban living. (Supplied)

“The Saudi Tourism Authority’s virtual travel companion, SARA, demonstrates how AI delivers real-time insights and information about attractions and events.”

NEOM, Saudi Arabia’s $500 billion smart city project on the Kingdom’s northwest coast, is incorporating AI to redefine urban living. The technology is expected to play a pivotal role in personalizing services, optimizing transport, and enhancing hospitality.

“AI will revolutionize communication technologies in projects like NEOM by facilitating intelligent, scalable, and seamless interactions,” Kapetanovic said. “In NEOM’s envisioned smart city ecosystem, AI-powered platforms could enable real-time collaboration, multilingual translation, and predictive analytics.”

DID YOUKNOW?

• AI technologies are central to Saudi Arabia’s megaprojects, enhancing personalized services, transport, and entertainment experiences.

• AI-powered tools, such as SportNative and OptaVision, optimize sports operations, on-field analysis, and fan engagement in the Kingdom.

• AI systems like SARA provide personalized recommendations, real-time translations, and seamless navigation.

AI is also expected to enhance travel and logistics in NEOM, enabling real-time route planning, efficient cargo management, and predictive maintenance of transport networks. 

“These tools have the potential to empower residents, visitors and businesses through dynamic, efficient communication and logistical systems,” Kapetanovic said. “By leveraging AI, NEOM aspires to become a global benchmark for interconnected and sustainable living.”

The influence of AI extends beyond infrastructure to retail and entertainment, where conversational AI is reshaping customer interactions. Data from Infobip revealed a 26 percent increase in customer interactions during Black Friday, reflecting the growing adoption of AI in consumer communications.

AI is now being used to manage large crowds at events, reduce queuing times, and improve navigation, enhancing experiences for visitors. (Supplied)

“This surge in digital communication aligns perfectly with the smart city vision of projects like NEOM,” Kapetanovic said.

Qiddiya, meanwhile, another megaproject taking shape near Riyadh, is expected to redefine leisure, entertainment and events through advanced AI applications.

In November, software development company Globant and the Qiddiya Investment Company‎ signed an agreement to develop Qiddiya’s “PLAY LIFE Connected Experience,” an AI-powered platform offering personalized itineraries, event bookings, and community engagement.

AN AI rendering of the Qiddiya project in Riyadh. (Supplied)

“The platform will allow visitors to book events, manage their itineraries, discover new adventures, and engage with the community through a real-time interface,” Kapetanovic said.

AI is also critical to Saudi Arabia’s Vision 2030 goals, which prioritize sustainable development and quality of life. From predictive maintenance to efficient resource allocation, AI-driven infrastructure advancements are minimizing costs while accelerating progress.

“When it comes to infrastructure, AI could drive predictive maintenance and efficient resource allocation,” Kapetanovic said. “These advancements align with Vision 2030 by fostering innovation, enabling sustainable development, and elevating the quality of life.”
 

 


Saudi Broadcasting Corporation partners with director Timothy Baker for reality show ‘Ozoom’

Updated 02 January 2025
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Saudi Broadcasting Corporation partners with director Timothy Baker for reality show ‘Ozoom’

  • Baker, known for work with The Rock, praises Saudi crew
  • ‘I am directing this show like I would in the United States’

RIYADH: The Saudi Broadcasting Corporation has announced its collaboration with acclaimed director Timothy Baker, best known for his work with Dwayne “The Rock” Johnson.

Baker will apply his expertise to the Saudi version of “Ozoom,” a reality show that helps people to overcome their fears, which is currently being broadcast by the SBC.

The director has worked on high-level projects including the American adaptation of the reality show “Wake Up Call” featuring Johnson.

In an interview with Arab News, Baker said: “‘Ozoom’ focuses on changing a person’s life for the better, and we are trying to capture genuine emotion and lifestyle changes with our camera coverage.  I am directing this show like I would in the United States.”

He was full of praise for the local team, saying: “The local crew is a talented group of people. Many make movies, scripted TV shows, and commercials. The crew has excellent professional knowledge of cinematography and audio. 

“What is different with ‘Ozoom’ is we are making a reality show. Reality TV is unstructured, and the story can change on the fly. I am helping people be more flexible in camera coverage and adapting to a changing environment when working with cases.

“I see the Saudi production world growing immensely in the future, so working in different genres of showbusiness is essential in a growing market.”

“Ozoom” is a pioneering series hosted by Saudi artist Ahmed Al-Bayed, featuring individuals who, with determination and the program’s support, work to overcome challenges and achieve their dreams. 

The show aims to inspire viewers by highlighting the power of resilience, determination, and community support. The SBC is committed to collaborating with international talent to advance the production sector and develop local expertise.

Mohammed Al-Hamid, supervisor of “Ozoom,” noted that the partnership aligns with the vision of CEO Mohammed Al-Harthi and Ibrahim Al-Farhan, supervisor of programs and content. 

He said that the initiative seeks to merge international expertise with local production, creating relatable content that empowers and develops the skills of Saudi professionals.

“Ozoom” is broadcast weekly every Wednesday on SBC.