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.”

 


How organic beekeeping is transforming a traditional Saudi industry into a model of sustainable growth

Updated 12 July 2025
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How organic beekeeping is transforming a traditional Saudi industry into a model of sustainable growth

  • Over 15,000 beekeepers in the Kingdom now use modern hives, transforming honey into a major economic and export sector
  • Government support, organic certification, and participation in exhibitions have helped scale production for international markets

JEDDAH: Saudi Arabia’s honey sector is experiencing a quiet revolution, one that blends centuries-old beekeeping traditions with the precision of modern sustainable agriculture.

Once an overlooked element of rural life, honey production in the Kingdom is now gaining global recognition, fueled by organic certification, government support and the determination of pioneering beekeepers.

Among the leading figures shaping this transformation is Jassim Almughrabi, Saudi Arabia’s first certified organic honey producer and owner of Mughrabi Apiaries.

With decades of experience, including his tenure as a honeybee specialist at the Ministry of Agriculture, Almughrabi discussed with Arab News the profound shift that has taken place in recent years.

“After the government showed strong interest in organic agriculture, things became much more comfortable for us,” he said. 

“I had already registered as an organic honey producer, but when the Ministry of Agriculture started giving support and donations to beekeepers who wanted to convert from conventional to organic, our production improved significantly.”

This institutional backing has allowed local beekeepers to grow their operations and expand into new markets.

Almughrabi highlighted how the ministry not only facilitated certifications but also opened doors for beekeepers to participate in national exhibitions like BIOFACH Saudi Arabia, a major event now held annually in Riyadh.

Saudi beekeepers are now a regular participant in BIOFACH, the annual international exhibition for organic products sponsored by Saudi Arabia's Ministry of Environment, Water, and Agriculture. (SPA)

“Through the Organic Cooperative Society, we are even allowed to participate free of charge,” he said. “The government really helped us spread our presence in the field, and we thank them for that.”

At the heart of Saudi Arabia’s beekeeping heritage lies a deep knowledge of traditional methods, especially in the mountainous regions of Makkah, Madinah, Abha, Al-Baha and Taif.

For centuries, beekeepers in these areas used hollowed logs to house bees, drawing from nature to sustain their practices. While this form of beekeeping still holds cultural value, a shift began around 45 years ago when the ministry encouraged farmers to adopt modern beehive systems.

Mangrove trees along the Kingdom's Arabian Gulf coast pllay an important role in beekeeping. (Supplied)

“I was working in the Ministry of Agriculture back then,” said Almughrabi. “We conducted training courses to help traditional beekeepers transition to modern methods, like the Langstroth hive used in Europe and America. Now, more than 15,000 beekeepers across the Kingdom have adopted these techniques.”

This has transformed the industry, making Saudi honey a highly sought-after commodity.

Mansour Al-Mgaslah, beekeeper and supervisor of the Mangrove Honey Production Initiative said: “The honey sector in the Kingdom has witnessed a remarkable transformation in recent years, driven by a growing awareness of the importance of sustainable beekeeping practices. 

Mangrove flowers help sustain bee populations. (Supplied)

“Beekeepers are now committing to environmental and health standards and adopting modern technologies to preserve the health of both bees and plants.”

This transition is not without its challenges. Desertification, pesticide use, and climate change are pressing environmental issues that threaten both bee populations and floral diversity.

However, both Almughrabi and Al-Mgaslah believe sustainable beekeeping offers practical solutions. By encouraging vegetation restoration and reducing chemical dependencies, beekeepers can help preserve ecosystems that bees and honey production rely on.

Beekeeping boxes set up for harvesting. (Supplied)

“Some of the major challenges include the shrinking of natural pastures and increasing desertification,” said Al-Mgaslah. “Sustainable beekeeping helps restore ecological balance by preserving bees as sensitive and effective environmental indicators.”

Al-Mgaslah shared the sentiment.

“Biodiversity is not just an environmental value. It is essential for ensuring the continuity of high-quality honey production,” he said. “Native plants such as sidr, samar, talh and mangrove provide bees with rich and pure nectar sources. Supporting this biodiversity contributes to building a more resilient and stable ecosystem.”

Almughrabi says government schemes have already begun to yield results. “When Saudi Crown Prince Mohammed bin Salman launched the Saudi Green Initiative, valleys were protected from overgrazing and greenery started returning,” he said.

“This led to a noticeable increase in honey production. Ten years ago, we produced less than 1 kilogram of honey per hive. Now, we sometimes get 1.5 to 2 kilograms.”

The role of native bees and local flora in this equation cannot be overstated. Indigenous bee species, such as the Arabian honeybee, have shown better resilience and adaptability to the Kingdom’s varied climate.

Saudi Arabia’s honey industry is proving that sustainability, tradition, and innovation can work in harmony. (Supplied)

In contrast, imported bees often struggle to survive beyond one or two harvest cycles.

“In the middle of Saudi Arabia, beekeepers often use imported bees,” said Almughrabi. “But they aren’t as strong. Local bees are very good, very strong, and after the harvest we can even transport them to other regions like Jazan or Al-Lith, where the climate is warmer in winter. We don’t have to buy new bees every year.”

The cornerstone of Saudi Arabia’s sustainable honey movement is its organic certification system, monitored by the Ministry of Environment, Water and Agriculture. The process is rigorous and includes criteria such as pesticide-free pastures, natural nutrition without antibiotics or sugar, and complete traceability from hive to shelf.

With an organic certification system in place, Saudi Arabia's honey industry is poised to export to the world market. (Supplied)

“To be certified organic in the Kingdom means that your honey is free from any chemical or industrial interventions at every stage,” said Al-Mgaslah. “Beekeepers must meet strict environmental and documentation standards, and the certification is granted only through authorized, ministry-recognized bodies.”

With international demand for clean, traceable, and eco-conscious products on the rise, both experts believe Saudi Arabia is poised for a golden era in honey exports.

“The Kingdom holds an exceptional opportunity to become a global leader in organic honey production,” said Al-Mgaslah.

Locally produced honey. (Supplied)

“Thanks to its unique botanical diversity, rich heritage, and government support, Saudi honey can meet the growing global demand for authentic, natural products.”

Almughrabi added: “We believe the future of Saudi honey lies in expanding exports and entering niche markets that value quality and authenticity. With continued support, we can make Saudi honey a global name.”

In a land long associated with arid deserts, Saudi Arabia’s honey industry is proving that sustainability, tradition, and innovation can work in harmony. The result is more than just honey — it is a model for agricultural resilience and cultural pride.
 

 


Saudi Arabia praised at UN for global leadership on dust storm early warnings

Updated 12 July 2025
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Saudi Arabia praised at UN for global leadership on dust storm early warnings

  • The meeting highlighted the Kingdom’s $10 million commitment over five years to strengthen early warning systems

NEW YORK: Saudi Arabia’s international efforts to combat sand and dust storms were commended this week during a high-level meeting at the UN Headquarters in New York, the Saudi Press Agency reported on Friday.

The meeting highlighted the Kingdom’s $10 million commitment over five years to strengthen early warning systems and support countries vulnerable to dust storm impacts.

The initiative, led by Saudi Arabia in cooperation with regional centers affiliated with the World Meteorological Organization, was praised for enhancing forecasting and response capabilities.

Jumaan bin Saad Al-Qahtani, deputy CEO of the National Center of Meteorology, emphasized the Kingdom’s work through Vision 2030 programs such as the Saudi and Middle East Green Initiatives.

He also noted the establishment of the Regional Center for Dust and Sand Storms in Jeddah as a strategic hub for regional coordination, data exchange, and capacity building.

Saudi Arabia has hosted major research events, including the First International Conference on Dust and Sand Storms in Riyadh, and plans to hold a second edition in 2026.

Its environmental efforts have resulted in planting over 142 million trees and reclaiming more than 436,000 hectares of degraded land.

Al-Qahtani reaffirmed the Kingdom’s readiness to expand international partnerships to reduce dust sources, protect the environment, and improve resilience against climate change, SPA added.


New dates set for UN Palestinian statehood conference co-chaired by France, Saudi Arabia

Updated 12 July 2025
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New dates set for UN Palestinian statehood conference co-chaired by France, Saudi Arabia

  • Originally scheduled for June 17-20, the event was postponed after Israel launched its 12-day war against Iran on June 13
  • The aim of the conference, rescheduled for July 28-29, is the urgent adoption of concrete measures leading to implementation of a 2-state solution

NEW YORK: An international conference organized and co-chaired by Saudi Arabia and France to discuss Palestinian statehood that was postponed last month has been rescheduled for later this month.

“The two-state solution ministerial conference will resume on July 28 and 29; details will be shared shortly,” diplomats confirmed to Arab News on Friday.

Originally scheduled for June 17-20, the event, officially titled the High-Level International Conference for the Peaceful Settlement of the Question of Palestine and the Implementation of the Two-State Solution, was postponed after Israel launched its 12-day military operation against Iran on June 13.

The event, convened by the UN General Assembly, will take place at the UN headquarters in New York. The aim is the urgent adoption of concrete measures that will lead to the implementation of a two-state solution and end decades of conflict between Israelis and Palestinians.

At the time of the postponement last month, French President Emmanuel Macron said the conference was being put back for logistical and security reasons but insisted it would be held “as soon as possible.”

The delay did not “call into question our determination to move forward with the implementation of the two-state solution,” he added

Macron is expected to officially announce French recognition of a Palestinian state during the event. This week, he urged UK authorities to do the same.

Palestine is officially recognized by 147 of the UN’s 193 member states. It holds observer status within the organization but is denied full membership.

Speaking during a preparatory UN meeting in May, Manal Radwan, a counselor at the Saudi Foreign Ministry, said the conference comes at a moment of “historic urgency” in which Gaza was “enduring unimaginable suffering.”

She said Saudi Arabia was honored to stand with the other nations committed to diplomatic efforts to bring “real, irreversible and transformative change, to ensure, once and for all, the peaceful settlement of the question of Palestine.”


Saudi Arabia observes World Population Day

Updated 11 July 2025
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Saudi Arabia observes World Population Day

JEDDAH: Saudi Arabia marked World Population Day, observed annually on July 11, with a focus on raising awareness of population issues and their impact on sustainable development and the environment.

World Population Day was established in 1989 by the UN Development Program amid rapid population growth, which required accurate and reliable data to support development strategies.

In this context, the Saudi General Authority for Statistics has enabled the Kingdom to stay abreast of global statistical advancements by adopting the latest international technologies and methodologies in conducting its census.

These efforts ensure the quality and accuracy of data, enhancing the reliability of statistical indicators that form the foundation of national plans and policies.

An integrated team at the authority is tasked with reviewing and verifying census data in accordance with the highest international standards, using advanced techniques for analysis and statistics. This work is carried out in cooperation with other government entities, ultimately contributing to the development of an accurate database that serves as a key reference for shaping economic and social policies.


Saudi Arabia aims to foster entrepreneurial ecosystem

Saudi Deputy Minister of Environment, Water and Agriculture Mansour bin Hilal Al-Mushaiti. (SPA)
Updated 11 July 2025
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Saudi Arabia aims to foster entrepreneurial ecosystem

  • The Sidra Accelerator is a 12-week intensive program targeting startup companies in the environmental technology field, the ministry said

RIYADH: Saudi Deputy Minister of Environment, Water and Agriculture Mansour bin Hilal Al-Mushaiti has launched the second phase of the Sidra Accelerator initiative in Riyadh, SPA reports.

The initiative is designed to foster an entrepreneurial ecosystem in Saudi Arabia’s environmental sector in line with the Saudi Vision 2030.

The Sidra Accelerator is the first initiative of its kind in the region in terms of its targeted sectors and the locations of its selected entrepreneurship systems in Riyadh and Boston, SPA reports. 

The accelerator focuses on promoting collaboration and strategic partnerships. It also supports startup companies in navigating complex regulatory frameworks.

The Sidra Accelerator is a 12-week intensive program targeting startup companies in the environmental technology field, the ministry said.

It supports their development and scaling by connecting them to a wide network of local and international experts, providing access to global systems and markets, and facilitating cooperation with leading venture capital firms. Ultimately, the program will help them expand globally, the ministry said.