SCA 5132/2016

This case involved whether a dispute involving an investment contract to develop colleges was covered by the commercial court.

Background

A company filed a case against another company before the court. It said that it had agreed with the other company to develop and manage a few colleges owned by the other party. It said that the other company had failed to commit to its obligations in accordance with the signed contract. The company requested the court to dismiss the contract and to order the other company to paycompensation of 233128282 Riyals.

Decision

The court considered the case and concluded that the dispute is existed regarding educational activity.

The court said that the consideration of the case does not fall under the jurisdiction of the commercial court in accordance with Article 443 of Saudi Arabia Royal Decree No. M32/1350.

The company appealed the ruling before the court of appeal.

The court dismissed the appeal and upheld the appealed ruling