No Jail or Iqama cancelation to loan defaulters

Some provisions have been proposed in the Saudi Judicial Implementation Law that prevent the jail term, canceling the Iqama or electronic services to the loan defaulters.

What are the proposed amendments?

To be concise, the following amendments have been proposed;

  • Abolishing the provision of imprisonment of defaulters of payment.
  • Canceling the suspension of government services for loan defaulters.
  • Addressing the discrepancy on the travel ban.
  • Addressing the discrepancy on the decision to terminate Iqama.

It is also not permissible to implement a verdict on wages and salaries except by one-third of the total wage or salary for other debts.

It should be noted that these are the proposed regulations that are yet to be implemented. Those in the judicial sector are awaiting the issuance of the new law that contains many radical amendments in debt cases.

The law also allows the insolvent to practice his profession or his craft and carry out his personal obligations, and the court shall assess his solvency, and decide on the amount of the government subsidies that can be extended to him.

Source: Saudi Gazette

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