Administrative Revocation of Financial Licences:

A Re-evaluation of Procedural Guarantees under Saudi Law and Islamic Jurisprudence

Asam Saud Alsaiat

 

Abstract: This article addresses the legal problem of the revocation of financial licences in Saudi Arabia, which is a discretionary administrative decision. It examines whether existing procedural guarantees under Sausi law adequately protect licensees and align with principles of Islamic jurisprudence. The article argues that licence revocation, particularly when triggered by violation of its conditions, should be treated as a quasi-punitive act requiring heightened procedural protections derived from both Saudi law and Shari’ah. The article first examines the legal nature of the revocation of financial licences, then analyses procedural guarantees before, during, and after the decision, and finally evaluates these guarantees through Islamic jurisprudential principles. The analysis finds a substantial alignment of Saudi law with Shari’ah principles. However, gaps remain, particularly in relation to the guarantee of proportionality and the duty to give reasons for revocation, requiring the need for enhanced procedural safeguards. In conclusion, strengthening these guarantees is essential to ensure fairness and legitimacy in licence revocation decisions by relevant authorities.