Mediation in Saudi Arabia: Taradhi and Settlement Records

Two partners disagree over two years of profits, and both know the case could take a long time. One suggests: "Let's sit with a mediator." The other wonders: if we agree, is the agreement binding, or just words?

The short answer: yes, it is binding. If reconciliation at a Ministry of Justice reconciliation office (the request is filed online through the Taradhi platform) ends with a settlement record signed by the parties and approved by the office, it is an executive instrument (sanad tanfidhi, a document enforceable directly at the Enforcement Court). After it becomes binding, neither of you can cancel it except with everyone's consent or for a Sharia or legal reason (Article 21 of the Rules of Work in Reconciliation Offices). As a rule, the process ends within 30 days and three sessions.

The new Enforcement Law (published on 14/11/1447H, 1 May 2026) comes into force 180 days after publication, around 28 October 2026, and replaces the Enforcement Law of 1433H. The sections below explain the current position on enforcing a settlement record and what will change.

Why choose settlement in Saudi Arabia?

The Quran says: "And settlement is best" (An-Nisa 4:128). The Civil Transactions Law makes settlement a contract that ends the dispute, and it cannot be withdrawn once made (Articles 391 and 401). The Reconciliation Centre was set up in the Ministry of Justice to settle disputes amicably through offices located in courts or notary offices (Articles 3 and 4 of the Organisation of the Reconciliation Centre).

Which disputes can go to Taradhi reconciliation?

Reconciliation offices handle disputes referred by the courts, and disputes submitted by the parties, or one of them, either before any case or at any stage after a case has started, with notice to the judge hearing it. They do not accept matters that cannot be settled under Sharia, matters the parties have no right to settle, or anything that violates a law (Article 2 of the Rules). A session can deal with more than one dispute between the same parties, even if different courts would have jurisdiction over them (Article 16).

How does reconciliation work through Taradhi?

• The reconciliation office sets a session date within 14 days of registering the request. If a party is absent, another date is set within seven days of the first. If the party is absent again, or cannot be notified, the request is closed (Article 14).
• Sessions may be held remotely online (Article 14).
• The parties attend in person or through agents whose power of attorney allows them to settle. A company is represented by a person with authority to settle for it (Article 15).
• The mediator may meet each party alone, and may not force anyone to accept a settlement (Article 16).
• There may be more than one session, up to three, and the process should not take more than 30 days from its start, unless the office sets longer periods or its director approves an extension (Article 16).

Can what I say in a mediation session be used against me in court?

As a rule, no. Reconciliation sessions are confidential, and what was said in them may not be submitted as evidence or testified to before the courts, dispute committees or arbitration (Article 17). Exceptions include what is needed to enforce the settlement record, and a party submitting in court documents it provided itself, or documents it held lawfully before the reconciliation. So offering to settle for a certain amount in the session is not an admission that can be used against you later.

How strong is a Taradhi settlement record?

If reconciliation ends in a full settlement, a settlement record is written. If the settlement covers only part of the dispute, a record is written for the agreed part, with a report on what was not agreed (Article 19). The record is signed by the mediator and the parties, and approved by the office director, the secretary-general or a person they authorise (Articles 20 and 21).

The settlement record binds the parties once they sign it. After approval, it becomes an executive instrument subject to the Enforcement Law's rules on executive instruments. No party may cancel or annul it after it becomes binding, except with the consent of all parties or for a Sharia or legal reason (Article 21). The current Enforcement Law treats settlement records issued by authorised bodies as executive instruments (Article 9).

A supplier claims SAR 180,000 in overdue invoices from a restaurant. In a remote session through Taradhi, they agree on SAR 150,000 paid over three months, with the whole balance becoming due if any instalment is more than 15 days late.

The record is approved. The second instalment is late, so the supplier submits the record in an enforcement request for the balance directly, without filing a case or proving the invoices again.

What changes under the new Enforcement Law?

• The settlement record remains an executive instrument: the new law treats settlement agreements and settlement documents that are notarised or issued by legally authorised bodies as executive instruments (Article 7).
• If the right in the record depends on an obligation whose performance does not appear from the record itself, such as delivering goods or completing work, the creditor attaches a report from an expert body approved by the Ministry proving it was performed (Article 8). So write the record so that the right is clear on its face as far as possible.
• Five working days after the debtor is notified of the enforcement order without payment, credit information providers such as SIMAH are notified and his current and future assets are attached. The court may impose a fine of up to SAR 5,000 per day (Article 18).
• A travel ban is issued at the creditor's request, for up to three years, which can be extended up to six (Article 19).

Can commercial disputes go to mediation before court?

The Commercial Courts Law allows parties to a commercial dealing to use reconciliation and mediation before a case is registered, under the court's supervision (Article 19). Using reconciliation or mediation before registering the case counts as the required notice to the defendant, provided 15 days have passed (Article 71 of the Implementing Regulations). Mediation through a private mediator outside the reconciliation offices is allowed (Article 8 of the Organisation), but the resulting agreement needs notarisation or certification to become an executive instrument. Otherwise it remains a settlement contract that needs a court case to enforce.

This is general information based on the official Arabic texts of Saudi laws, which prevail over any translation. It is not legal advice for your specific case.

Practical solutions for both parties

If you are the party requesting reconciliation:

• Decide before the session what you will and will not give up.
• Attend the sessions; a second absence closes the request.
• Write the instalments, dates and the consequences of late payment in the record.
• Make sure the record is approved so it becomes an executive instrument.

If you are the party invited to reconciliation:

• Reconciliation does not mean admitting the claim, and confidentiality protects what you offer in the session.
• Attend yourself or through an agent with authority to settle; otherwise the agreement may stall.
• Do not sign a record you cannot honour. It is an instrument that can be enforced directly.
• Ask that the settlement cover all claims connected with the dispute.

A well-written settlement ends the dispute and is enforced without a new case. Send us a summary of the dispute or the draft agreement on WhatsApp, and we will help you prepare for the session and draft the record.