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.”

 


Orchestra celebrates soundtracks of popular video games at Saudi Arabia’s Ithra

The event at Ithra featured music from Guild Wars 2, World of Warcraft, The Witcher 3 and Assassin’s Creed 2, among many others.
Updated 04 April 2025
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Orchestra celebrates soundtracks of popular video games at Saudi Arabia’s Ithra

  • Concert features symphonic arrangements, in-game HD visuals

DHAHRAN: It is “game on” at the King Abdulaziz Center for World Culture after it opened its doors to an event on Thursday.

The orchestral performance, which is being held nightly at the Ithra Theater — with two shows scheduled for Friday — celebrates the soundtracks of popular video games and attempts to breathe new life into them.

The concert features symphonic arrangements paired with in-game HD visuals and exclusive concept art from popular titles such as League of Legends, Overwatch, Assassin’s Creed, and The Witcher 3.

The event featured music from Guild Wars 2, World of Warcraft, The Witcher 3 and Assassin’s Creed 2, among many others. (Supplied)

Sergey Smbatyan, founder of the Armenian State Symphony Orchestra and the artistic director and principal conductor since 2005, was on hand to lend context and commentary between the scores on opening night.

He told the crowd before the show: “If you’re not a gamer, what I want you to do is to imagine that you’re in a museum — an art museum — but instead of a curator telling you about the images that you’re going to see on this huge screen, let these musicians tell you that exact story.

“Tonight there is no right time to clap; there is no wrong time to clap. If you hear something you like from these guys (gesturing to the orchestra behind him on stage), let us know.

“We're going to start off tonight with role-play games, or what are known as RPGs, where players assume the roles of characters in a fictional setting. The game is focused on interactive storytelling, decision-making and strategy.”

Dhahran resident Paul Blay took his two daughters Sylvia, 11, and Celeste, 10, to the show.

Blay, who is a father of six, told Arab News: “I get emails about Ithra events and saw this one and I thought it would be fun for me and the girls to go to. Like with anyone that you love, I shared the things I love with them.”

The Blay family moved to the Kingdom last year and were keen to attend an event that merged gaming with music.

Celeste told Arab News: “I really like video game music; the music is really pretty and I like listening to that. It is kind of what motivated me to come here. And, also, my dad likes video games.”

The older Blay sisters have both taken music lessons and play multiple instruments, including the piano, the harp and the clarinet.

Their father said: “Some of the best music that’s being composed nowadays is for movies and video games. I expected it to be really high quality and good (at Ithra).”

The event featured music from Guild Wars 2, World of Warcraft, The Witcher 3 and Assassin’s Creed 2, among many others.

The last show takes place on April 5, with tickets starting at SR200 ($53), available at the venue or via the Ithra website.

 


Exhibition honoring Prince Khaled Al-Faisal inaugurated in Jeddah

Updated 04 April 2025
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Exhibition honoring Prince Khaled Al-Faisal inaugurated in Jeddah

  • The exhibition chronicles Prince Khaled’s life and contributions as a statesman, individual and poet through visual installations

MAKKAH: Makkah Deputy Gov. Prince Saud bin Mishal bin Abdulaziz launched the “Love of Khaled Al-Faisal” exhibition as part of Jeddah Season festivities.

The ceremony was attended by Prince Turki bin Faisal, alongside several relatives of Makkah Gov. Prince Khaled Al-Faisal.

The delegation toured the exhibition, housed at the Abadi Al-Johar area in Jeddah, which runs from April 3-8 and welcomes visitors daily from 4 p.m. to 11 p.m.

The exhibition chronicles Prince Khaled’s life and contributions as a statesman, individual and poet through visual installations.

 


Saudi Arabia’s Hail poppy reserve attracts thousands of tourists

As the sun sets, the golden rays cast a warm glow over the landscape and create a natural wonder. (SPA)
Updated 04 April 2025
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Saudi Arabia’s Hail poppy reserve attracts thousands of tourists

  • Since opening in 2022, the reserve, which covers 10,000 sq. meters, has drawn thousands of domestic and foreign visitors

HAIL: With its vibrant array of wildflowers framed by golden sand dunes and majestic mountains, the Poppy Reserve in Al-Khattah is one of the Hail region’s most captivating attractions.

Since opening in 2022, the reserve, which covers 10,000 sq. meters, has drawn thousands of domestic and foreign visitors, particularly during holidays, Eid and the spring season.

The attraction enchants guests with its sweeping fields of poppies, perfectly balanced in form and color. As the sun sets, the golden rays cast a warm glow over the landscape and create a natural wonder.

This striking beauty enhances the region’s reputation for breathtaking scenery and offers a unique experience.

 


Saudi Arabia concludes participation in Bologna Book Fair

The event introduced visitors to Saudi heritage through a comprehensive cultural experience. (SPA)
Updated 04 April 2025
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Saudi Arabia concludes participation in Bologna Book Fair

  • The Saudi pavilion experienced significant engagement from publishers and international literary agencies, Al-Bassam added

BOLOGNA: Saudi Arabia concluded its participation in the Bologna International Book Fair 2025, held in Bologna, Italy, from March 31 to April 3.

The event introduced visitors to Saudi heritage through a comprehensive cultural experience.

Bassam Al-Bassam, general manager of publishing at the Saudi Literature, Publishing, and Translation Commission, said the commission organized various initiatives to enhance the publishing and translation industry in the Kingdom and showcase the Saudi cultural landscape.

The Saudi pavilion experienced significant engagement from publishers and international literary agencies, Al-Bassam added.

By participating in international book fairs, the Kingdom aims to enhance its cultural presence on a global scale and create new opportunities to promote Saudi culture both regionally and internationally.

 


Attempt to smuggle qat foiled in Saudi Arabia’s Jazan

Patrols of the Border Guard in Al-Daer, Jazan, foiled an attempt to smuggle 45 kg of hashish. (SPA)
Updated 04 April 2025
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Attempt to smuggle qat foiled in Saudi Arabia’s Jazan

  • Preliminary procedures have been completed, and the seized narcotics were handed to the competent authority

JAZAN: Saudi Border Guard land patrols in Farasan, Jazan, arrested three Yemenis for violating border security system regulations and attempting to smuggle 171 kg of qat.

Meanwhile, Border Guard land patrols in Al-Daer, Jazan, foiled an attempt to smuggle 45 kg of hashish. Preliminary procedures have been completed, and the seized narcotics were handed to the competent authority.