The Commercial Disputes Settlement via Arbitration system operates in Saudi Arabia
The Kingdom of Saudi Arabia (KSA) encounters an expanding trend toward arbitration because the country now chooses this method to settle commercial disputes. The Saudi Arbitration Law from 2012 represents the foundation that brought modern arbitration practices to Saudi Arabia via its basis on UNCITRAL Model Law.
Saudi Arabia operates the Saudi Center for Commercial Arbitration (SCCA) which functions as its main arbitration institution. Since its foundation in 2016 the independent non-profit organization Saudi Center for Commercial Arbitration (SCCA) strives to foster arbitration and substitute dispute resolution (ADR) methods within Saudi Arabia.
The SCCA implemented a complete framework regarding arbitration procedures through its 2020-modified Arbitration Rules. All essential rules for arbitration govern arbitrator choices alongside hearing procedures while controlling award production together with award execution methods.
Specific legal and cultural elements of Saudi Arabia find their place in the procedural rules established by the SCCA. Under the Rules all arbitrators need to demonstrate proof of their education at a university level in Shari’a or legal sciences while the tribunal chairman must have both this qualification and Shari’a law capabilities. The Saudi Arbitration Law sets a criterion that arbitrators should possess correct qualifications for applying Shari’a law, which this requirement follows.
Apart from the SCCA Saudi Arabia maintains multiple arbitration institutions which focus on different sectors or geographical locations. Two prominent arbitration centers function in Saudi Arabia including the Gulf Cooperation Council Commercial Arbitration Center (GCCAC) and the Jeddah Chamber of Commerce and Industry Arbitration Center (JCCIA).
The GCCAC initiated operations in 1993 to handle commercial disputes across the member countries of Gulf Cooperation Council. The JCCIA came into existence during 2016 with a mission to address all commercial disputes extending across Jeddah’s territory.
The extension of arbitration institutions across Saudi Arabia together with the Saudi Arbitration Law has led to rising popularity of arbitration as a commercial dispute resolution method in the Kingdom. The expanding foreign investment and economic diversification in Saudi Arabia will make dispute resolution services by these institutions progressively crucial for the country.
This article offers a general overview of the subject matter and is not a substitute for legal advice. For guidance tailored to your specific circumstances, professional consultation is recommended.
If you choose us to support your specific issue, please do not hesitate to contact us using Inquiries Form (link) or by sending an email to info@ahysp.com
