Fire at Jeddah International Market, Saudi Arabia

We have been instructed on behalf of multiple interests in respect of the losses caused by the fire at Jeddah International Market on 29 September 2024. Our clients include the insurers of various jewellery shop owners within the Market, whose stock has been destroyed or damaged by the fire and firefighting measures.

Jeddah International Market, also known as Souq Al-Duwali, is one of the city’s oldest shopping destinations. Located on Madinah Road in the Al-Rawdah district, the market blends traditional souq architecture with modern retail offerings. The market houses around 200 shops offering jewellery, clothing, and groceries, alongside a supermarket and a food court.

Our instructions are to monitor the investigations into the cause of the fire, and to pursue recovery claims against the responsible party or parties. The investigations into the cause are being conducted by the Civil Defence Authority, which controls fire safety in the Kingdom of Saudi Arabia and is responsible for issuing codified regulations.

In relation to potential recoveries, Saudi Arabia has a dedicated forum for insurance-related disputes: the Insurance Disputes Committee (IDC). The IDC has jurisdiction over all insurance-related disputes and violations, including those arising from insurance policies, conflicts between insurers and reinsurers, disputes involving insurance service providers, breaches of regulatory and supervisory instructions issued by the Saudi Central Bank (SAMA), and subrogated claims.

Saudi law does not provide a unified commercial or civil code governing insurance or contract law. Instead, contracts, including insurance contracts, are interpreted in accordance with Sharia principles. Where a contractual provision conflicts with Sharia, the latter prevails. Accordingly, the IDC applies Sharia principles when adjudicating disputes, with a particular emphasis on fairness and equitable outcomes.

In the course of our involvement to date, our appointed Saudi Counsel has drawn  attention to previous similar cases which offer valuable insight into how the present matter may be approached. It is to be noted that the IDC typically places significant weight on the Civil Defence Authority’s findings when determining liability. In our review of previous cases in collaboration with our Saudi Counsel, it is evident that the IDC’s  decisions are often heavily influenced by the contents of the Civil Defence Authority’s report. As such, we consider it a critical factor in identifying the appropriate target(s)  for recovery, and assessing the merits of any claims.

Preliminary findings suggest that the fire likely originated from a shop where welding work was being conducted, but we are currently awaiting confirmation from the Civil Defence Authority and are closely monitoring their investigation. We believe there are likely to be viable recovery options available, and we are actively exploring these with the assistance of local experts and Saudi legal Counsel.

Should you wish to discuss this matter further or express an interest in joining our representation, please do not hesitate to reach out to Craig Bird or Kimberly Kong on an informal no-obligation basis.