Assignment of rightsIn Arabic: حوالة الحق

Definition

An assignment of rights transfers the creditor’s claim against the debtor to another person. The debtor’s consent is not required for the assignment to be concluded, unless the law, the contract or the nature of the obligation says otherwise.

How it varies across the GCC

In Saudi Arabia articles 238 and 239 of the Civil Transactions Law govern it, and it is valid only to the extent the right can be attached. Bahrain’s Civil Code states it in article 288. A clause forbidding assignment is common in supply contracts and in receivables finance.

The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.

Sources

Official texts for the points on this page. General information, not legal advice. An article number is cited only where it was verified.

1. Saudi Civil Transactions Law, art. 238, 239https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/655fdb42-8c96-422b-b8c4-b04f0095c94c/1
2. Bahrain Civil Code, Decree-Law No. 19 of 2001, art. 288https://www.lloc.gov.bh/Legislation/HTM/L1901