What if a friend is not returning money in Saudi Arabia?

If a friend borrows money and does not return it on time, do you have any recourse as per Saudi Law? We have explained how can you legally ask your friend to return the loan in Saudi Arabia.

A signed receipt of the transaction

If you are entering into a business agreement with a friend in which he is taking a loan, you must have an authentic contract signed mentioning all the points, rights, and obligations of both parties.

If it is not a business transaction, you should always take his signatures on a letter confirming the amount of money received. This letter is enough to prove that he owes you funds.

How to claim borrowed money from a friend?

Now the person can follow three steps to ask for his payment in Saudi Arabia.

  1. Firstly, send a personal official letter to the defaulting friend demanding his money back.
  2. In case of no answer or refusal, he is free to appoint a lawyer and send him a legal notice. The notice could either be sent to settle the matter or return the money immediately.
  3. Thirdly, if the other side still doesn’t respond then the first party can bring a civil lawsuit against the second asking him to return the investment or borrowed amount immediately. Hopefully, the matter will be resolved in court.

No Agreement Signed

In case there is no evidence to support the fact that he has taken funds, goodbye to your money. You cannot do anything except requesting him to pay you back the money for the sake of Allah.

  • A Whatsapp chat accepting the receipt of funds is acceptable.
  • A witness confirming the receipt of funds is acceptable.

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Steve has been living in Saudi Arabia since 2013 and writing about Saudi rules, regulations, guides, and procedures since then.