Contributed By K&A
Arbitration is a recognised method for resolving disputes in Saudi Arabia, though courts remain the primary venue if settlement efforts fail. Recent government initiatives are aimed at promoting arbitration among domestic and governmental entities.
Notably, on 19 January 2019 the President of the Council of Ministers issued High Order No 28004, marking a policy shift that encourages ministries, government authorities and state-owned companies to resolve disputes with foreign investors through arbitration. This directive mandates that arbitration occur within Saudi Arabia and highlights the Saudi Center for Commercial Arbitration (SCCA) as the preferred option. Additionally, it allows for arbitration under other licensed centres in Saudi Arabia.
The SCCA’s 2025 caseload demonstrates growing market confidence in arbitration. In 2025, the SCCA registered 182 new arbitration cases, a 63% increase from 2024, reinforcing arbitration’s position as an increasingly trusted and established mechanism for resolving commercial disputes in the Kingdom.
In recent years, arbitration activity has notably increased in the construction and sports industries. This surge can be attributed to several factors:
Additionally, with Saudi Arabia’s Vision 2030 (aimed at diversifying the Saudi economy and fostering growth in various sectors), there has been a corresponding rise in disputes within these evolving industries. This shift highlights the growing importance of arbitration as a preferred method of resolving conflicts in these rapidly developing fields.
The SCCA is the premier arbitration institution in Saudi Arabia. Since its establishment in 2014, it has made significant strides, including the introduction of updated arbitration rules in 2023 that align with top international standards. It has also set up an arbitration court featuring globally recognised practitioners and scholars, and opened an office in Dubai to boost regional presence and accessibility. The SCCA is now the preferred centre for resolving disputes involving state-owned entities and governmental bodies.
Additionally, the SCCA has played an active role in promoting arbitration within Saudi Arabia, notably through Riyadh International Disputes Week (RIDW), which was successfully held for the third time in February 2026 (RIDW26).
RIDW26 featured several notable institutional developments. The SCCA partnered with Jus Mundi to integrate Jus AI capabilities into its case management system, and signed an agreement with Professor Gary B Born, in collaboration with Kluwer Arbitration, to translate International Arbitration: Law and Practice into Arabic. It also launched its dedicated research centre, SADEED Research and Legal Development. Together, these initiatives underline the SCCA’s commitment not only to administering arbitration in line with international best practices but also to advancing arbitration knowledge, infrastructure and professional capacity in Saudi Arabia and across the Middle East and North Africa (MENA) region.
Alongside the SCCA, the Saudi Sports Arbitration Centre (SSAC) continues to gain traction as the Kingdom’s specialist institution for sports-related disputes, reflecting Saudi Arabia’s growing investment in the sports sector, particularly football. The SSAC has strengthened its institutional profile through a memorandum of understanding with the Gulf Sports Arbitration Authority to enhance co-operation and knowledge-sharing, as well as by expanding its roster to include leading sports arbitration specialists, including CAS-listed arbitrators. Its board has also approved a framework for classifying arbitrators and assessing their performance. These developments highlight the SSAC’s ongoing efforts to enhance the quality, credibility and efficiency of sports arbitration in the Kingdom.
There is no single court designated for all matters arising from arbitration agreements. Instead, the appeal court that would have had jurisdiction without an arbitration agreement will handle disputes related to both international and domestic arbitrations (eg, the Appeal Labour Court for labour disputes and the Appeal Commercial Court for commercial disputes).
For international commercial arbitration conducted within the Kingdom or abroad, Article 7(2) of the Saudi Arbitration Law, issued under Royal Decree No (M/34) dated 24/05/1433H (16 April 2012), specifies that the territorial jurisdiction would be for the relevant Court of Appeal in Riyadh, unless the parties agree on another Court of Appeal within the Kingdom. Typically, the Commercial Court, particularly its appeal circuits, handles most arbitration cases, as most arbitrations arise from commercial relationships.
However, there are specialised courts dedicated to enforcement actions related to arbitral awards. The Enforcement Law, introduced by Royal Decree No M/53 dated 13/8/1433H (3 July 2012) (the “Enforcement Law”), marked a substantial shift in Saudi Arabia’s arbitration landscape by transferring enforcement proceedings from the Saudi Board of Grievances (BoG) to specialised enforcement courts.
At the date of this publication, arbitration in the Kingdom of Saudi Arabia is governed by the Arbitration Law, established by Royal Decree No M/34 dated 24/05/1433H (16 April 2012), which took effect on 8 July 2012, and its Implementing Regulations dated 22 May 2017 (the “Implementing Regulations”).
The Arbitration Law is based on the UNICTRAL Model Law. The most notable difference between the Saudi Arbitration Law and the UNCITRAL Model Law is that the Saudi law includes references to Shari’ah principles, specifically in Articles 5, 14, 25, 38, 50 and 55.
There have been no enacted changes to the Saudi Arbitration Law itself in the past year. However, two recent developments are expected to impact the arbitration landscape in the Kingdom.
First, Saudi Arabia has issued a new Enforcement Law under Royal Decree No M/237 dated 3/11/1447H (20 April 2026) (the “New Enforcement Law”). The law has not yet taken effect and will enter into force on or around 29 October 2026. Once in force, it will replace the current Enforcement Law and introduce a more comprehensive enforcement framework, including clearer rules on enforcement instruments, foreign judgments and arbitral awards, streamlined asset disclosure procedures, and enhanced enforcement mechanisms. This is expected to further strengthen the enforcement of arbitral awards in the Kingdom.
Second, the National Competitiveness Centre has recently published a Draft Arbitration Law for public consultation. If enacted, the Draft Arbitration Law would replace the current Arbitration Law and its Implementing Regulations. It proposes several important reforms, including:
These proposed reforms reflect the Kingdom’s ongoing efforts to modernise its arbitration framework and further align it with international best practice.
The Civil Transactions Law, which came into force on 16 December 2023, also remains relevant to arbitration practice. By codifying key principles of contract and civil liability, it continues to enhance predictability for courts, arbitral tribunals and parties involved in disputes governed by Saudi law.
Under Article 9 of the Saudi Arbitration Law, an arbitration agreement must be in writing to be valid and enforceable. While this is the primary requirement, other rules may impact its validity, as outlined below.
Furthermore, under Article 10 of the Saudi Arbitration Law, the individual entering into the agreement must have the legal capacity to bind the party they represent to arbitration.
Article 10(2) of the Saudi Arbitration Law stipulates that government bodies can enter into arbitration agreements only with the approval of the Prime Minister, unless a specific legal provision allows otherwise. Subsequently, the Government Tenders and Procurement Law (the “GTP Law”), enacted by Royal Decree No M/128 on 13/11/1440H (corresponding to 16 July 2019), and its Implementing Regulations issued by Minister of Finance Resolution No 1242 on 21/031441H (corresponding to 19 November 2019), which took effect on 1 December 2019, updated this requirement. Under Article 92(2) of the GTP Law, government entities can now enter into arbitration agreements with prior approval from the Saudi Minister of Finance.
Article 154 of the Implementing Regulations of the GTP Law outlines additional requirements for government entities agreeing to arbitration:
Under the Saudi Arabian law, certain subject matters are excluded from arbitration. Specifically, Article 2 of the Saudi Arbitration Law states that the provisions of the law do not apply to personal status disputes or matters not subject to reconciliation:
The general approach to determining whether a dispute is “arbitrable” in Saudi Arabia involves assessing whether the dispute falls within these excluded categories. If the dispute pertains to personal status or involves issues that cannot be reconciled, it is deemed non-arbitrable and cannot be resolved through arbitration.
In Saudi Arabia, national courts generally do not have the authority to decide on the applicable law in an arbitration agreement as this is left to the parties. According to the law and practice, parties to an arbitration agreement typically have the autonomy to determine the applicable law themselves. This choice is usually specified within the arbitration agreement itself or agreed upon during the arbitration proceedings. The role of the national courts is primarily to support arbitration proceedings, enforce arbitration agreements, and assist in the recognition and enforcement of arbitral awards, rather than deciding on the substantive law applicable to the dispute.
In Saudi Arabia, national courts generally support the enforcement of arbitration agreements. They honour the parties’ choice to use arbitration instead of litigation for resolving disputes. When a dispute is covered by a valid arbitration clause, courts usually enforce the agreement by directing the parties to arbitration. In fact, Article 11 of the Arbitration Law specifies that courts cannot hear a dispute subject to an arbitration clause if the respondent raises a non-jurisdictional defence based on the arbitration clause before presenting any other claims or defences.
Furthermore, Saudi courts adhere to the principle of competence-competence, which means they recognise arbitrators’ authority to determine their own jurisdiction. Courts usually intervene minimally in arbitration proceedings, focusing on upholding the parties’ agreement and ensuring compliance with the Saudi Arbitration Law. They also support arbitration when necessary, such as by, for instance, issuing interim orders in support of arbitration (see Article 22 of the Saudi Arbitration Law).
However, courts may refuse to enforce arbitration agreements or awards if they conflict with public policy or involve issues considered non-arbitrable under Saudi law.
Article 21 of the Saudi Arbitration Law embraces the global principle of separability, which treats the arbitration agreement as distinct from the main contract. This principle ensures that the arbitration clause is autonomous and independent from the main contract, thereby protecting it from challenges directed at the main contract itself.
In Saudi Arabia, parties have complete autonomy in selecting arbitrators, subject to specific conditions outlined in Article 14 of the Saudi Arbitration Law. In short, the chosen arbitrator:
Under Article 15 of the Saudi Arbitration Law, if the parties cannot agree on the selection of arbitrators, a default procedure is applied.
For a tribunal with one arbitrator, the competent court (refer to 1.4 National Courts) appoints the arbitrator within 30 days of receiving a request from one of the parties.
In a tribunal with three arbitrators, each party selects one arbitrator, and these two then appoint the chairperson (or president). If a party fails to appoint their arbitrator within 15 days or if the two appointed arbitrators cannot agree on the chairperson within 15 days, the competent court will appoint the chairperson within 15 days upon receiving a petition from a party requesting to expedite the arbitration. This procedure also applies to tribunals with more than three arbitrators.
Additionally, if the parties fail to agree on appointment procedures or if procedural failures occur, the competent court will intervene to take necessary measures unless the arbitration agreement specifies alternative methods. When appointing an arbitrator, the competent court must adhere to the conditions specified in the arbitration agreement and meet the requirements outlined in Article 14 of the Saudi Arbitration Law. The decision of the competent court appointing the arbitrator is not subject to appeal.
Please refer to 4.2 Default Procedures.
Under Article 16 of the Saudi Arbitration Law, the grounds for challenging an arbitrator include several key factors. An arbitrator must have no vested interest in the dispute and must disclose any circumstances that might raise justifiable doubts about their impartiality or independence, both at the time of appointment and throughout the arbitration proceedings. Additionally, an arbitrator is barred from considering or hearing a case for reasons like those that bar a judge, even if neither party requests it. Under Article 94 of the Saudi Law of Civil Procedure, these grounds include where the arbitrator:
The Arbitration Law also specifies additional grounds for challenging an arbitrator, including:
Furthermore, a party cannot challenge an arbitrator they appointed or participated in appointing, except for reasons that became known after the arbitrator’s appointment.
The parties to the arbitration can agree on the procedures for challenging arbitrators. However, if no procedure is agreed, the procedure highlighted in Article 17 of the Saudi Arbitration Law will apply.
Article 17 of the Saudi Arbitration Law states that a party seeking to disqualify an arbitrator must submit a written challenge within five days of becoming aware of the arbitrator’s appointment or discovering grounds that permit challenging such arbitrator, such as doubts about the arbitrator’s impartiality or independence, or the lack of qualifications agreed upon by the parties.
If the arbitrator does not recuse themselves or if the other party did not accept the petition within five days, the tribunal must decide on the disqualification within 15 days. Should the tribunal reject the challenge, the party may appeal to the competent court (see 4.1 Limits on Selection) within 30 days, with the court’s decision being final and not subject to further appeal.
Filing a disqualification petition with the arbitral tribunal suspends the arbitration proceedings. However, an appeal to the competent national court against the tribunal’s decision on the challenge does not suspend the proceedings.
If the disqualification is granted, either by the tribunal or the court on appeal, all prior arbitration procedures, including any awards, are rendered null and void.
Under Article 16 of the Saudi Arbitration Law, an arbitrator must disclose in writing any circumstances likely to give rise to justifiable doubts about their independence and impartiality from the time of their appointment and throughout the arbitration process. Please refer to 4.2 Default Procedures for more details.
The Saudi Arbitration Law recognises the principle of competence-competence. Article 20 stipulates that the arbitral tribunal decides on all jurisdictional issues, including challenges to the validity of the arbitration agreement or claims that the dispute is not covered by the agreement.
The Saudi Arbitration Law supports minimal court intervention, highlighting the arbitral tribunal’s independence and the parties’ autonomy. However, it permits court intervention under specific conditions. Notably, the court can review jurisdictional issues only if the arbitral tribunal rejects a plea of lack of jurisdiction. This review occurs exclusively at the annulment stage (see Article 20(3) of the Saudi Arbitration Law).
Parties can challenge the arbitral tribunal’s jurisdiction in court only after the tribunal has rendered a final award. Article 20(3) of the Saudi Arbitration Law states that a decision by the arbitral tribunal to reject a defence based on the tribunal’s lack of jurisdiction can only be challenged during the annulment stage, which occurs after the final award has been issued.
If a tribunal rejects a jurisdictional challenge and the affected party files a request for annulment under Article 50(4) of the Saudi Arbitration Law, the competent court will evaluate the appeal based solely on procedural aspects of the jurisdictional issue, without delving into the facts or merits of the underlying dispute. The court will review the relevant documents, particularly the arbitration agreement or clause, and render its decision accordingly. If the court upholds the award as valid, this decision is final and cannot be appealed, as outlined in Article 51(2) of the Saudi Arbitration Law. If the court decides to annul the award, the losing party may appeal the decision within 30 days of receiving the court’s notification.
In general, courts rarely annul arbitration awards in the absence of a clear violation of the law. In fact, based on a recent statistic published by the SCCA, only 8% of all annulment requests have been accepted by Saudi courts.
Under the competence-competence principle, the Saudi Arbitration Law outlines specific procedures when a dispute is brought before a court despite being covered by an arbitration agreement. According to Article 11, the court must dismiss the case if the defendant raises a jurisdictional defence based on the arbitration agreement before addressing any other issues.
Additionally, Article 12 requires the court to refer the parties to arbitration if an agreement to resort to arbitration is reached while the dispute is being considered before the competent court.
There have been few instances where courts have denied requests to compel arbitration due to violations of the arbitration agreement, such as failing to follow agreed-upon pre-arbitration steps. Recently, however, courts have generally deferred these matters to the arbitral tribunal, in accordance with Article 20 of the Arbitration Law.
Although the Arbitration Law does not address multiparty arbitration directly, Article 13 of the Implementing Regulations allows the arbitral tribunal to approve the intervention or joinder of a third party, provided that all parties, including the third party, give their explicit consent. In the absence of such consent, the tribunal cannot assume jurisdiction over third parties.
Under Article 23 of the Saudi Arbitration Law, an arbitral tribunal is permitted to award preliminary or interim relief if granted the authority to do so by the parties. Therefore, the tribunal may, at the request of either party, issue provisional or precautionary measures as deemed necessary based on the nature of the dispute. The tribunal may also require the requesting party to provide a financial guarantee to cover the enforcement of these measures. If the party against whom the order is issued fails to comply, the tribunal can authorise the other party to take necessary steps to enforce the order or request enforcement from the competent authority. The tribunal’s interim measures are binding and enforceable.
The competent Saudi court can order provisional or precautionary measures. Parties can file such requests prior to commencing arbitration proceedings, or upon request by the arbitral tribunal during arbitration proceedings (see Article 22(1) of the Saudi Arbitration Law).
Although the Saudi Arbitration Law does not specifically address whether interim relief can be granted in support of foreign-seated arbitration, there is no indication that it would be excluded if the Saudi court has jurisdiction to hear the interim relief request.
The Arbitration Law does not mention emergency arbitrators. However, under the 2023 SCCA Arbitration Rules (ie, the leading arbitration rules in the Kingdom) an emergency arbitrator can issue interim orders (see 2023 SCCA Rules, Appendix III, Article 7(2)). These orders have the same effect as those issued in regular arbitration. The interim award or order is binding from the date it is issued, and the parties agree to comply immediately, waiving any rights to appeal or judicial review.
The 2023 SCCA Rules, Appendix III, Article 7(3) grants the emergency arbitrator the power to award provisional or precautionary measures deemed necessary, including maintaining or restoring the status quo, preventing imminent harm, providing injunctive relief or preserving evidence relevant to the dispute.
If a party fails to comply with precautionary measures issued by the arbitral tribunal, the other party may seek assistance from the competent authority to enforce these measures, as outlined in Article 22 of the Arbitration Law.
Saudi law does not cover security for costs when filing claims. Additionally, it is uncommon for Saudi courts to require claimants to provide security for costs in disputes before Saudi courts.
However, Article 54 of the Saudi Arbitration Law allows a court to require a guarantee or financial security when it orders the suspension of enforcement of an award. The Saudi Enforcement Law further permits enforcement courts to mandate security for claims through the precautionary sequestration of movable and immovable assets (see Articles 32 and 42 of the Saudi Enforcement Law). The applicant might need to provide cross-indemnity secured by a bank guarantee to cover any costs or losses incurred by the debtor due to these measures.
Under the 2023 SCCA Arbitration Rules, the Arbitral Tribunal can order any party to provide security for costs upon request (see Article 35(2) of the 2023 SCCA Arbitration Rules).
Article 4 of the Saudi Arbitration Law provides that the parties to arbitration may determine the procedure to be followed, including the option to delegate this choice to a third party, such as an individual, tribunal, organisation or arbitration centre, either within the Kingdom or internationally.
Article 25 of the Arbitration Law further allows the parties to agree on the procedural rules for the arbitration tribunal, including adopting the rules of any arbitration institution, whether in Saudi Arabia or abroad, as long as these rules comply with Shari’ah. In the absence of such an agreement, the arbitral tribunal may establish the procedures it deems appropriate, in accordance with Shari’ah and the law.
The Saudi Arbitration Law does not provide for any particular mandatory procedural steps as long as public policy is preserved. The law ensures that all parties are treated equally and given a full and equal opportunity to present their case (see Article 27 of the Saudi Arbitration Law).
The Saudi Arbitration Law provides for default procedural steps/matters which generally pertain to the following.
Arbitrators must exercise their mission in compliance with the duties of impartiality and independence (see Article 16 of the Saudi Arbitration Law).
The powers attributed to the arbitral tribunal include the following, inter alia:
However, the tribunal cannot hear challenges related to document forgery as such matters fall within the jurisdiction of national courts, which handle criminal proceedings. If issues such as forgery or other criminal acts arise, the tribunal may continue with the dispute if deciding on these issues is not essential. Otherwise, it shall suspend the proceedings until a final judgment on such criminal proceedings is reached, which will also suspend the deadline for issuing the arbitration award (Article 37 of the Saudi Arbitration Law).
For more information on this point, please see 10.2 Types of Remedies.
In a recent study conducted by the SCCA in co-ordination with the Saudi Ministry of Justice (MoJ) (discussed on the SCCA website on 16 August 2022), it was confirmed that Saudi legislation allows parties to select any representative of their choosing, including foreign legal counsel, for arbitral tribunals. In addition, there are no requirements for representatives to be lawyers or Saudi nationals.
Separately, Article 14 of the Arbitration Law reflects the same principle, allowing for the selection of arbitrators without restrictions based on gender, nationality or profession. However, it mandates that a sole arbitrator or the chair of an arbitral tribunal must hold a university degree in law or Shari’ah.
The Saudi Arbitration Law does not specifically outline the procedures for collecting and submitting evidence. Typically, parties present evidence to support their written submissions, and the relevant rules are those set out in the Saudi Evidence Law issued by Royal Decree No (M/43) dated 26/5/1443H (30 December 2021 AG) (the “Saudi Evidence Law”).
Arbitral tribunals have the authority to admit, assess and weigh evidence. They may conduct any evidentiary procedures they find appropriate, reverse previously ordered procedures, and grant or deny requests related to evidentiary matters without affecting the parties’ rights of defence. The types of evidence that can be admitted include:
Fact witnesses and technical experts may be examined and cross-examined during hearings, but witness testimony is not taken under oath.
It is common for tribunals to use the IBA Rules on the Taking of Evidence in International Commercial Arbitration, provided the parties agree to it and to the extent agreed upon.
However, concepts such as “discovery” and “legal privilege” are not recognised under Saudi Law. Some protection is acknowledged regarding clients’ documents and information, with certain exceptions.
Under the Saudi Evidence Law, document disclosure is regulated by specific provisions. In sum, Articles 34 to 37 outline the framework for requesting and producing documents as follows.
Article 34
Under this article, a litigant may request the court to order an opposing party to produce documents in any of the following instances:
The request must include:
Article 35
If the opposing party acknowledges possession or remains silent, or if the applicant adequately substantiates their request, the court will order production of the document.
If the opposing party abstains from producing the document after being granted one grace period, the document copy provided by the applicant will be considered a true copy. However, if the applicant did not have a copy, the court will accept the applicant’s words on the description and content of such document.
If the defending party denies that the document exists and the applicant fails to provide sufficient evidence to support their claim, the applicant may request the court to order the opposing party to take an oath regarding the document.
Article 36
In commercial lawsuits, a litigant may request document production if:
Article 37
The court can:
Unless the parties agree otherwise, the rules of evidence used in litigation will also apply to arbitration conducted in the Kingdom of Saudi Arabia.
Under Saudi law, arbitral tribunals lack the coercive and executive powers of courts. However, they can request the assistance of the courts. Article 22 of the Saudi Arbitration Law empowers courts to assist arbitrators with:
Arbitral tribunals can seek court assistance to compel the production of documents or the attendance of witnesses.
Arbitral proceedings are generally confidential in Saudi Arabia. Article 43(2) of the Saudi Arbitration Law specifies that arbitration awards cannot be published, in whole or in part, without the written consent of both parties.
In the Kingdom, there is an implied duty of confidentiality regarding pleadings and documents related to the arbitration. However, initiating arbitration-related court proceedings, such as requests for enforcement or nullity actions, may result in this information becoming part of the public domain.
In SCCA-administered arbitrations, Article 36(3) of the SCCA Rules permits the SCCA to publish awards in anonymised or redacted form unless a party objects before the conclusion of the arbitration. Parties requiring a higher degree of confidentiality should therefore expressly address this issue at the outset of the proceedings or incorporate appropriate confidentiality provisions into the arbitration agreement.
Article 39 of the Saudi Arbitration Law outlines the requirements for an arbitral award.
Article 42 of the Saudi Arbitration Law provides further requirements.
Article 40 addresses the time limits for delivering an arbitral award.
Articles 43 and 44 of the Saudi Arbitration Law outline the procedural requirements for handling and submitting the arbitration award.
These provisions ensure that arbitral awards in Saudi Arabia adhere to clear guidelines and are delivered within a specified timeframe, providing a structured process for dispute resolution.
Arbitral tribunals in Saudi Arabia have broad authority to grant various types of remedies, including declaratory relief, specific performance, and monetary compensation for actual damages proven and suffered. However, there are no specific limits on these remedies except those related to Shari’ah and public policy.
Arbitral tribunals cannot issue punitive damages, nor can they award interest, as these are strictly prohibited under Shari’ah.
Interest is strictly prohibited under Shari’ah law, so parties cannot recover interest through arbitration proceedings. If an arbitral tribunal awards interest, the Saudi courts may annul the award, either wholly or partially (depending on how the award is drafted).
Typically, costs are allocated based on the outcome of the case (ie, they follow the event), unless the parties agree otherwise. The arbitral tribunal may also order the losing party to compensate the winning party for incurred attorneys’ fees.
Under the SCCA framework, the arbitral tribunal can determine and allocate arbitration costs in its award. This includes the arbitrator’s fees and costs, the parties’ legal representation costs and fees as well as other related expenses. The arbitral tribunal can distribute these costs among the parties at its discretion based on what it considers reasonable, taking into account factors such as each party’s conduct and efforts to manage costs efficiently (Article 40(1) of the 2023 SCCA Rules).
Arbitral awards cannot be appealed before Saudi courts. Instead, they can only be contested by filing an action to nullify the award within 60 days from the date of its notification to the parties (Article 51(1) of the Saudi Arbitration Law). If a Saudi court issues a judgment annulling an arbitral award, this decision can be appealed to the Saudi Supreme Court within 30 days of notification, as per Article 51 of the Saudi Arbitration Law and Article 17 of its Implementing Regulations. Conversely, a judgment rejecting an annulment action is final and not subject to appeal.
The Saudi Arbitration Law provides an exhaustive list of grounds for annulling an arbitral award. Under Article 50 of the Saudi Arbitration Law, an award will only be annulled if:
Additionally, the competent court in the Kingdom hearing a case for annulment shall annul the award on its own initiative if it concludes either that:
The parties cannot alter the scope of challenge to an arbitral award, as Article 50 of the Saudi Arbitration Law provides an exhaustive list of grounds for annulment. However, they may waive their right to seek annulment after (but not before) the award has been issued (see Article 51(1) of the Saudi Arbitration Law and Article 18(1) of its Implementing Regulations).
Article 7 of the Saudi Arbitration Law states that if a party continues with the arbitration after becoming aware of a violation of the arbitration agreement or the Arbitration Law (in matters that can be agreed otherwise by the parties), and does not raise an objection before the tribunal within 30 days of discovering the violation (or within the agreed-upon period), that party is then deemed to have waived the right to make this objection later. Therefore, to use such violations as grounds for annulment before the Saudi courts, the party must have addressed them promptly during the arbitration process.
Under Saudi law, a Saudi court’s review of an award focuses solely on the legality of the arbitral award, not on its merits. An annulment action is not an appeal. Consequently, Saudi courts cannot re-evaluate the case de novo. This is clear from the text of Article 50(4) of the Saudi Arbitration Law, which expressly states that the competent court shall consider the action for nullification based on the grounds outlined in Article 50, “without inspecting the facts or subject matter of the dispute”.
The Kingdom of Saudi Arabia is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. However, it has reserved the right to limit the Convention’s application to the recognition and enforcement of awards made in the territory of other contracting states, based on reciprocity. Additionally, Royal Decree No M/11 specifies that the Convention does not apply retroactively to disputes initiated before Saudi Arabia’s ratification.
The Saudi government is also a party to several bilateral investment treaties and international conventions, including, inter alia:
The Saudi Arbitration Law and the Enforcement Law outline the procedure for enforcing an arbitral award in the Kingdom. The following is a short summary of the process.
Enforcing a Domestic Arbitral Award
To enforce a domestic arbitral award, the party must first obtain an order declaring the award enforceable from the competent appeal court with original jurisdiction over the dispute. This involves applying to the court for this enforceability order.
To request a declaration order, as mandated by Article 53 of the Saudi Arbitration Law, the party must provide:
Enforcing a Foreign Arbitral Award
To enforce a foreign arbitral award in Saudi Arabia, the following conditions must be met.
Enforcement Procedure
Under the existing enforcement framework governed by the Enforcement Law, the enforcement procedure typically includes the following.
Once the New Enforcement Law enters into force, the enforcement process will generally proceed as follows.
Enforcement When Annulment Proceedings are Commenced
Article 54 of the Saudi Arbitration Law specifies that filing a request for annulment does not automatically suspend the execution of the arbitral award. However, the court can grant a stay of execution if requested by a party, provided the request is based on “sound grounds”. The court must make a decision on the stay within 15 days of receiving the petition and may require a bail or financial guarantee. If a stay is granted, the court will decide on the annulment action within 180 days from the date of the stay order.
Under Article 55 of the Saudi Arbitration Law, the following applies.
Foreign Awards and Annulment Proceedings Pending at the Seat
A foreign arbitral award that has been set aside in the jurisdiction where it was issued will usually not be enforced in Saudi Arabia as long as such award is not considered a final award as per the applicable law in the jurisdiction.
If annulment proceedings are ongoing at the seat (and the award is not deemed final in accordance with applicable law in the jurisdiction where it was issued), the Saudi Enforcement Court will reject enforcement as such award does not satisfy a condition for enforcement of foreign awards as per Article 11 of the Enforcement Law (and Article 9 of the New Enforcement Law).
Special Cases Against the Saudi State or a Saudi Governmental Entity
If the award pertains to a commercial transaction with the Saudi State or a Saudi governmental entity, enforcement proceedings must be commenced before the specific Administrative Courts (BoG) (see the Law of Enforcement before BoG issued pursuant to Royal Decree No M/15 dated 27/01/1443H (4 September 2021G)). The enforcement judge may not issue enforcement against publicly owned assets.
Saudi Arabian courts are generally pro-enforcement regarding arbitral awards. They strictly adhere to the specified grounds for annulment and typically interpret the public policy ground narrowly.
According to data released by the SCCA in 2022, in collaboration with the Saudi Ministry of Justice, for the period from January to September 2022 (the “Study Period”), Saudi enforcement courts enforced 522 domestic and foreign arbitral awards totalling SAR871 million (equivalent to USD232 million). Among these awards, 12 were foreign awards (representing 2% of the total awards and nearly 15% of their total value) issued in Lebanon, Morocco, South Korea, Switzerland, the UAE and the UK. Additionally, Saudi Arabia’s Deputy Minister for Enforcement confirmed that no court decisions during this period refused to enforce a foreign arbitral award on grounds of public policy violations, including breaches of Shari’ah principles.
More recently, according to the SCCA Country Report published in July 2026, 194 applications seeking the annulment of arbitral awards were filed between January 2023 and June 2025. Of these, 89.7% were dismissed, while only 1.55% resulted in annulment on the grounds of violations of Shari’ah principles or Saudi public policy.
These statistics underscore a growing trend since the enactment of the 2012 Arbitration Law, showcasing Saudi Arabia’s progression towards becoming an arbitration-friendly jurisdiction.
For the enforcement of foreign arbitral awards in Saudi Arabia, one condition is that the award must not contradict Saudi Arabia’s public policy. According to Article 11/3 of the Enforcement Law Implementing Regulations issued by Ministerial Decision No 526 dated 20/09/1439H (corresponding to 5 June 2018 AG), public policy refers to Islamic Shari’ah principles as applicable in the Kingdom.
In practice, enforcement judges usually refuse to enforce foreign arbitral awards only if a significant Shari’ah violation is found (eg, awards involving interest payments), which is generally rare as shown in the statistics mentioned above.
The Saudi Arbitration Law does not address class action arbitration or group arbitration.
The Saudi Arbitration Law does not specify mandatory ethical codes or professional standards for counsel and arbitrators.
However, Saudi lawyers must adhere to the ethical rules set out in the Saudi Bar Association’s regulations, including the Rules of Professional Conduct for Lawyers, issued by the Minister of Justice Order No 3453 dated 24/02/1442 H (corresponding to 11 October 2020 AG). The Rules govern the ethical conduct and professional standards that all Saudi lawyers must adhere to. Arbitrators and counsel generally follow widely accepted professional standards unless specific standards from their own jurisdiction apply.
Additionally, the SCCA has established its own Code of Ethics, which governs the conduct of both counsel and arbitrators involved in SCCA proceedings.
The Saudi Arbitration Law does not explicitly address third-party funders. However, certain provisions indirectly impact them. For example, Article 16 of the Arbitration Law requires disclosure of any circumstances that might reasonably affect an arbitrator’s impartiality or independence. This is relevant because a relationship between an arbitrator and a third-party funder could raise concerns about impartiality or independence.
Moreover, the 2023 SCCA Arbitration Rules explicitly address third-party funding, indicating its recognition within the Saudi legal framework. Article 17(6) of the 2023 SCCA Rules states:
“Each party must promptly disclose to the Administrator, all the other parties, and the arbitrators the identity of any non-party who has an economic interest in the arbitration’s outcome, including any third-party funder.”
The Saudi Arbitration Law does not explicitly address the consolidation of separate arbitral proceedings. However, parties are free to agree on consolidation, either directly or by adopting institutional arbitration rules that permit it.
For example, the 2023 SCCA Arbitration Rules provide a framework for consolidation in Article 13, which essentially allows the SCCA Court to consolidate multiple arbitrations into a single proceeding if the parties agree, the claims arise from the same legal relationship, or the claims are under compatible agreements. Consolidation cannot occur if any tribunal is fully constituted unless all parties agree or all tribunal members are identical and request consolidation. The SCCA Court will consider factors such as applicable law and progress of the arbitrations, and will manage the appointment of arbitrators as necessary.
Under Saudi law, a third party can only join an arbitration if all existing parties and the third party agree to the third party’s participation (see Article 13 of the Implementing Regulations). For further details, please refer to 5.6 Jurisdiction Over Third Parties.
In multiparty arbitrations under the SCCA Rules, the provisions for handling joinder as specified in the 2023 SCCA Rules will apply.
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