In brief
Governs finance lease contracts for assets between lessor and lessee: essential terms, the parties' duties, the register of contracts, recovery of the leased asset on default, and violations.
Summary of the law
Key points
- If a leased fixed asset is not handed back in the cases set by the law, the lessor may apply to the competent authority for its recovery under Article 25.
- The law took effect 90 days after publication (Article 28); details of the register are in the implementing regulation.
Penalties
- Depending on seriousness, a fine of up to a quarter of the leased asset's value, up to three months' imprisonment, or both (Article 26).
A plain-language summary prepared by Al-Bayan Al-Wadih Law Firm, focused on the violations and problems that come up most in daily life. It is not a substitute for the official text or for legal advice.
What it covers
- The finance lease contract
- Duties of lessor and lessee
- Register of contracts
- Asset recovery and disputes
Timeline
- Issued: Royal Decree M/48 · 13/8/1433H
Full record of amendments and regulations at the official source
Official text at the Bureau of Experts
The authoritative text is in Arabic; the Bureau of Experts publishes English translations for some laws.
Full official text
The full official text is in Arabic and is reproduced on the Arabic version of this page, as published by the Bureau of Experts at the Council of Ministers. Read the full Arabic text
Library content is simplified general information for awareness only. It is not legal advice and does not replace the official text. Laws change: always check the official source and consult a lawyer before acting. Library data last reviewed: .