Praise for Saudi visa after China tops visitor numbers

Praise for Saudi visa after China tops visitor numbers
Chen Weiqing, ambassador of China to Saudi Arabia.
Updated 12 October 2019

Praise for Saudi visa after China tops visitor numbers

Praise for Saudi visa after China tops visitor numbers
  • China topped the visitor numbers with 7,391 arrivals

Saudi Arabia’s new tourist visa will stimulate economic diversification and boost visitor numbers from around the world, Chen Weiqing, China’s ambassador in Riyadh, said.

Almost 24,000 foreign visitors entered Saudi Arabia in the 10 days after instant tourist visas were introduced at airports in the Kingdom, according to the Foreign Ministry.

China topped the visitor numbers with 7,391 arrivals, followed by the UK and US. Canada, Malaysia and Russia also had a significant number of visitors to the Kingdom.

Commenting on the figures, the Chinese envoy told Arab News: “We welcome the inauguration of the new Saudi tourist visa and offer congratulations on the positive feedback from tourists.

“Developing the tourism sector will help achieve Vision 2030, stimulate economic diversification and encourage the world to get to know Saudi Arabia,” he said.

History

The envoy said that Saudi Arabia, with its rich history, unique culture and variety of natural landscapes, held unique appeal for tourists from around the world.

“China and Saudi Arabia are comprehensive strategic partners. We are pleased to see that Chinese tourists topped the number of tourist visas applied so far,” Chen said.

He said that the number of Chinese outbound tourists reached 140 million in 2018.

“We believe that tourism cooperation between our two countries has great potential, and Saudi Arabia will become an attractive destination for Chinese tourists in the near future.

“The Chinese Embassy is ready to work with our Saudi partners to provide quality services to Chinese tourists.”

Religious journeys

Significantly, the new visa system also allows ease of access for Muslims to perform Umrah outside the Hajj season without the need for a sponsor, as is the case with work permit visas.

Outside of religious journeys, the new visa does not exclude any visitor on religious grounds and successful applicants can make multiple visits to the Kingdom within a 12-month period, provided each visit does not exceed 90 days.

The newly launched visa system was introduced in a bid to create 1 million jobs in the Kingdom as well as targeting 100 million tourists by 2030 as part of Saudi Vision 2030.


Overdue business rents waived by Saudi court

Overdue business rents waived by Saudi court
If a contract obliges one of the parties to carry out a task, which cannot be completed on time due to the pandemic, the court can temporarily suspend the implementation of the obligation. (SPA)
Updated 51 min 43 sec ago

Overdue business rents waived by Saudi court

Overdue business rents waived by Saudi court
  • The new regulations cover construction contracts, supply contracts, and the like, which have been affected by the pandemic

RIYADH: The General Assembly of the Saudi Supreme Court has ordered the waiving of overdue rents on businesses hit by the coronavirus disease (COVID-19) pandemic, and called for a review of such contracts between tenants and owners.

The steps have been taken in view of the circumstances caused by the pandemic, wherein an obligation or contract cannot be implemented without unusual losses.

The president of the Supreme Court, Khalid bin Abdullah bin Muhammad Al-Luhaidan, approved the decisions backed by 32 members of the assembly, Okaz newspaper reported.

Authorities have set conditions that have to be met before a case can be considered for review under the new regulations.

If a contract was concluded before the commencement of the preventive measures announced in the wake of the pandemic, then the impact was direct and unavoidable. If in such a case, an affected party was not compensated or did not reach a deal to mitigate the impact of the health crisis, then it qualifies for a review and the new regulations will then take effect, said legal sources.

The Supreme Court said a competent court will issue its verdict based on facts and circumstantial evidence, and may order amendments to a contract.

It also said the new provisions will be applicable to tenancy contracts and movable properties affected by the pandemic.

It clarified that if, due to the pandemic, a tenant was unable to use the leased property, in whole or in part, the court would reduce the rent as much as the usually intended benefit was reduced.

A lessor, meanwhile, does not have the right to terminate the contract if a tenant is late in paying rent for the period during which it was impossible to fully or partly use the property due to the pandemic.

HIGHLIGHT

The Supreme Court said a competent court will issue its verdict based on facts and circumstantial evidence, and may order amendments to a contract.

The new regulations also cover construction contracts, supply contracts, and the like, which have been affected by the pandemic.

If the pandemic causes an increase to the cost of materials and labor wages, etc., the court shall increase the value of the contract while ensuring the obligor can afford to bear the expense. The obligee, upon increasing the obligation, has the right to request the termination of the contract. If the increase in the cost of materials is temporary, the court reserves the right to temporarily suspend the contract.

If the pandemic causes a shortage of material in the market, the court can reduce the quantity to the extent it deems sufficient to protect the obligor from harm.

Moreover, if the shortage of materials is temporary, the court can temporarily suspend the contract if the person obligated to it is not severely affected by this suspension. If he is harmed, he may request termination of the contract. If the materials were not available at all, leading to the impossibility of implementing the contractual obligations or some of them, the court will terminate the clauses that are impossible to implement upon the request of one of the parties to the contract.

If a contract obliges one of the parties to carry out a task, which cannot be completed on time due to the pandemic, the court can temporarily suspend the implementation of the obligation. If the other party fears unusual damage due to the suspension, he may request termination of the contract.

In addition, the court also stressed the need to carefully assess the damages on a case-to-case basis, and that one or more experts should do the assessment. While assessing damages, it should be made clear what losses were incurred directly due to the pandemic and had nothing do to with seasonal upswing in certain activities.

The Supreme Court explained that a court is bound, when considering cases arising from contracts and obligations affected by the pandemic, not to apply penalty clause or fines in whole or in part — depending on the case.

In the event that a contract includes a clause of exemption from liability for one of the contracting parties when an emergency or force majeure occurs, the condition has no effect, and the party that breaches the obligation must provide evidence that the pandemic was the reason for the breach.

The affected contracts that are not covered by the provisions of this principle shall be subject to the legal and statutory litigation principles, said the court.

Commenting on the decision, Talal Albotty, the regional director of the Central Region, Salama Insurance Co., said there is a type of insurance called “suspension of operations” because of continuous epidemics, and falls under property insurance.

“This type of insurance can be found in European countries and some Asian countries but it is not applicable in Saudi Arabia,” he told Arab News. “The insurance against projects does not exist because when the project stops, insurance stops.”

Regarding the rise in prices of commodities, or the increase in prices because of pandemics and suspension of imports, a condition must be added stating that the value of property or project must increase by 10-25 percent, he added.

“Now most reinsurance companies around the world stopped offering insurance related to pandemics and contagious diseases in most countries, including COVID-19, because their impact was huge and the companies sustained huge losses,” he said.

Saudi lawyer Reem Alajmi said the resolution aims to treat and remedy the losses incurred by parties to the contract in terms of obligations.

“The parties could not fulfil their obligations because of a lack of sufficient resources or suspension of working hours during the pandemic. Fulfilling the obligation fully or partially was difficult because COVID-19 pandemic was a force majeure,” she told Arab News.

According to Alajmi, the effects or damage caused by the pandemic must not be covered by other laws. “Proving the occurrence of damage is the responsibility of the plaintiff and the defendant based on evidence submitted to the court,” she added. “The contracts and obligations are amended accordingly.”