Bankruptcy law aims for balance, not favoring debtors, says legal expert

Saudi bankruptcy law aims to balance the interests of both debtors and creditors, according to specialist lawyer Abdullah Al-Dosari. The law does not prioritize one side over the other, stating that it seeks to achieve equilibrium between the parties involved. Speaking on Al-Ikhbariya, Al-Dosari clarified that the law's primary goal is to enable debtors to reorganize and resume their business operations when possible.

However, the law also emphasizes ensuring fair treatment for all parties, maximizing the value of assets, and guaranteeing the equitable distribution of proceeds obtained from liquidating assets. Al-Dosari highlighted that the Saudi government has established a dedicated authority to bolster the implementation of bankruptcy procedures.

This authority, formed by a Cabinet decision, operates as an independent legal entity and reports to the Minister of Commerce. It is responsible for carrying out the tasks outlined in the bankruptcy law and its accompanying regulations.