In brief
Governs security rights over movable property to secure obligations, their effect against third parties through registration, their priority and enforcement.
Summary of the law
Key points
- A security right effective against third parties extends automatically to proceeds for 15 days after the grantor receives them, unless otherwise agreed (Article 10).
- If the security right ends before the registration period, the secured creditor must end the registration within 15 days (Article 17).
Practical tip
- Read it with the Commercial Pledge Law, amended when this law was issued, and with its implementing regulation on the register.
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
- Creating a security right
- Registration and third-party effect
- Priority among creditors
- Enforcement
Timeline
- Issued: Royal Decree M/94 · 15/4/1441H
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: .