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Settling Commercial Disputes Arbitration in Saudi Arabia

The Kingdom of Saudi Arabia (KSA) has seen a growing emphasis on arbitration as a preferred method for resolving commercial disputes. This shift is largely driven by the enactment of the Saudi Arbitration Law in 2012, which is based on the UNCITRAL Model Law and is designed to provide a modern and efficient framework for arbitration proceedings.

One of the key arbitration institutions in Saudi Arabia is the Saudi Center for Commercial Arbitration (SCCA). Established in 2016, the SCCA is an independent, non-profit organization that aims to promote the use of arbitration and other alternative dispute resolution (ADR) methods in the country.

The SCCA’s Arbitration Rules, which were last updated in 2020, provide a comprehensive set of procedures for the conduct of arbitration proceedings. These rules cover various aspects of the arbitration process, including the appointment of arbitrators, the conduct of hearings, the issuance of awards, and the enforcement of awards.

The SCCA’s Rules also incorporate provisions that are tailored to the specific legal and cultural context of Saudi Arabia. For example, the Rules require that all arbitrators have a university degree in Shari’a or legal sciences, and that the chairman of the tribunal must also possess such a degree. This is in line with the requirement under the Saudi Arbitration Law that the arbitrators must have the necessary qualifications to apply Shari’a law.

In addition to the SCCA, there are other arbitration institutions in Saudi Arabia that have been established to cater to specific sectors or regions. These include the Gulf Cooperation Council Commercial Arbitration Center (GCCAC) and the Jeddah Chamber of Commerce and Industry Arbitration Center (JCCIA).

The GCCAC, which was established in 1993, focuses on disputes arising from commercial transactions within the Gulf Cooperation Council (GCC) region. The JCCIA, on the other hand, was established in 2016 to handle commercial disputes in the Jeddah region.

Overall, the development of these arbitration institutions, coupled with the enactment of the Saudi Arbitration Law, has contributed to the growing popularity of arbitration as a means of resolving commercial disputes in the Kingdom. As Saudi Arabia continues to attract foreign investment and diversify its economy, the role of these institutions in providing efficient and effective dispute resolution services is likely to become increasingly important.