Introduction

Freezing bank accounts is one of the most impactful enforcement measures on individuals and businesses, as it directly restricts the ability to dispose of funds. Debtors are often surprised by the issuance of a freezing order without fully understanding the legal procedures that preceded it or the rights guaranteed to them by law during the enforcement process.

In this article, we explain the legal framework governing the freezing of bank accounts in the Kingdom of Saudi Arabia, when this measure is applied, its duration, and the debtor’s rights while it is in effect.

First: What Is Freezing a Bank Account?

Freezing a bank account is an enforcement measure issued by the Enforcement Court, aimed at preventing the debtor from disposing of the funds in their bank accounts and allocating them—fully or partially—to satisfy the debt subject to enforcement.

This measure is considered one of the strongest legal tools to ensure speedy enforcement and prevent the concealment or transfer of funds.

Second: When Is a Bank Account Frozen?

A bank account is not frozen arbitrarily. The following conditions must be met:

  • The existence of a valid enforcement instrument

  • Issuance of an enforcement order by the Enforcement Court

  • The debtor’s failure to fulfill the obligation within the statutory grace period

Once these conditions are met, the court orders the relevant authorities—including banks—to immediately implement the freeze.

Third: Procedures for Freezing Bank Accounts

The freezing process goes through several clear steps:

  1. Issuance of the Freezing Order
    After the payment deadline expires, the Enforcement Court issues an order to freeze the debtor’s funds.

  2. Notification of Banks
    Banks are notified electronically of the freezing order through the competent authorities.

  3. Implementation of the Freeze
    Banks are required to freeze the amounts in the accounts, up to the value of the debt.

  4. Transfer of Funds
    The frozen amounts may be transferred to the Enforcement Court’s account in preparation for payment to the creditor.

Fourth: Does the Freeze Apply to All Accounts?

In principle, the freeze applies to:

  • Current accounts

  • Savings accounts

  • Deposits

However, only up to the amount of the debt, and it is not permissible to freeze amounts exceeding the value of the enforced obligation.

Fifth: Duration of the Bank Account Freeze

The law does not specify a fixed duration for the freeze. It continues until:

  • Full payment of the debt

  • Issuance of a decision to lift the freeze

  • Approval of an official settlement

In some cases, the freeze may be partially lifted depending on the debtor’s circumstances.

Sixth: The Debtor’s Rights During the Account Freeze

Saudi law guarantees several rights to the debtor, including:

  • The right to object to the freeze if it involves a legal error

  • The right to request installment payments or a grace period under specific conditions

  • The right to prove insolvency if its conditions are met

  • The right to request the exemption of certain amounts necessary for living expenses or business operations

These protections aim to prevent abuse and maintain a balance between the interests of the creditor and the debtor.

Seventh: Does the Freeze Include Employee Salaries?

As a general rule, salaries are subject to special regulations and may not be fully seized. Only a specific percentage may be subject to enforcement, ensuring that the debtor retains a minimum level of livelihood, as determined by the competent authority.

Eighth: Common Mistakes Related to Account Freezing

Common mistakes include:

  • Believing that the freeze is permanent and cannot be lifted

  • Failing to communicate with the Enforcement Court

  • Not submitting legal requests in a timely manner

  • Attempting to transfer or conceal funds after the issuance of the enforcement order (a serious violation)

Improper handling of an account freeze may lead to stricter measures rather than relief.

Conclusion

Freezing bank accounts is a legitimate legal enforcement measure, but it is not a punishment as much as it is a means to ensure the fulfillment of rights. A debtor’s understanding of their rights and obligations during the freeze, and acting in a lawful and informed manner, can mitigate its effects and lead to more flexible solutions.

For the creditor, account freezing remains one of the most important legal tools to secure their rights without undue delay.