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.

In recent years, arbitration activity has notably increased in the construction and sports industries. This surge can be attributed to several factors:

• Time Sensitivity: Both industries are highly time-sensitive, prompting parties to seek expedited dispute resolution compared to traditional methods.
• Industry Expertise: Specialised knowledge is highly valued, and arbitration allows parties to select arbitrators with specific expertise relevant to their disputes.
• Confidentiality: Sensitive projects benefit from arbitration's higher confidentiality, as proceedings and awards are generally private, unlike court judgments, which are publicly published.

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, the SCCA 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 actively promoted arbitration within Saudi Arabia, notably through the successful inaugural Riyadh International Disputes Week (RIDW) held in March 2024. It has strengthened its role by signing several Memoranda of Understanding (MoUs) with major institutions and international bodies to advance alternative dispute resolution (ADR) in Saudi Arabia and the MENA region. 

For example, in May 2023 the SCCA partnered with Saudi Arabia's Economic Cities and Special Zones Authority (ECZA) to enhance ADR services in economic cities and special economic zones, increasing their appeal to both local and international investors.

While less established than the SCCA, the Saudi Sports Arbitration Center is gaining traction. Created to handle disputes within the sports sector, it is becoming increasingly relevant due to Saudi Arabia’s substantial investments in sports, including football. Though it is still developing its presence and capabilities, the Sports Arbitration Center is aligned with the Kingdom's growing focus on sports.

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 AG), 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 disputes 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/78 dated 19/09/1428H (1 October 2007) (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.

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 Regulation”). 

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 significant changes to the Arbitration Law in the past year. However, the introduction of the Civil Transactions Law (CTL), enacted by Royal Decree No. M/1441 dated 15 December 2023, is expected to have a notable impact on the arbitration landscape in the Kingdom of Saudi Arabia. The CTL, which came into force on 1 January 2024, introduces a comprehensive and codified framework for contract law and liabilities, which previously relied on Shari’ah principles that were not consolidated into a single code. By integrating these principles into one clear and comprehensive enactment, the CTL enhances legal predictability and consistency for both courts and arbitral tribunals.

This new framework provides clearer guidelines and reduces ambiguity in contractual relationships, which is crucial for arbitration. International parties often seek predictable and transparent legal environments, and the CTL’s alignment with global commercial standards has likely made Saudi Arabia's arbitration system more attractive. As a result, the CTL is likely to increase confidence among foreign investors and businesses, encouraging them to use arbitration more frequently in the Kingdom.

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:

• The arbitration agreement can be made either before or after the dispute arises, including when the dispute is already before a court; however, if the dispute is already before a court, the arbitration agreement must clearly specify the matters/issues it covers, or it would be deemed void.
• A written arbitration agreement can be in the form of a document issued by both parties, an exchange of documented correspondence, telegrams, or other electronic or written means of communication.
• A reference to an arbitration clause in a contract or any document, or to the provisions of a model contract, international convention, or similar document, will also be considered a valid arbitration agreement if the reference clearly incorporates the clause into the contract. 

Furthermore, under Article 10 of the Saudi Arbitration Law, the individual entering into the agreement must have the legal capacity to bind the party he represents 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 M/128 on 13 November 1440H (corresponding to 16 July 2019), and its Implementing Regulations issued by Minister of Finance Resolution No. 1242 on 21 March 1441H (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:

• Arbitration applies only to contracts valued over SAR100 million, subject to adjustment by the Minister of Finance.
• Arbitration must occur in Saudi Arabia, administered by the SCCA or another licensed centre, and governed by Saudi Arabian law.
• The arbitration agreement must be included in the contract documents.
• Contracts performed outside Saudi Arabia are exempt from the value requirement, allowing arbitration regardless of contract value, but approval from the Saudi Minister of Finance is needed.

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. 

• Personal status disputes typically involve issues related to family law such as marriage, divorce, child custody, alimony, visitation, endowments, wills, paternity, absence, death, determination of heirs, and inheritance, including real estate disputes involving endowments or wills, or matters concerning minors or absentees (see Article 33 of the Saudi Law of Civil Procedures). 
• Matters not subject to reconciliation refer to issues where settlement is legally prohibited, such as criminal cases against the state, crimes with a prescribed punishment under Shari’ah and matters of public policy.

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:

• must have full legal capacity;
• demonstrate good conduct, and have a reputable standing; and
• hold at least a university degree in Shari’ah or law. However, if the arbitral tribunal consists of more than one arbitrator, this educational requirement applies only to the chairperson of the tribunal.

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 above.

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 his 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 disqualify a judge, even if neither party requests it. Those reasons are:

• If the arbitrator or his/her spouse have a similar dispute to the dispute at hand.
• If the arbitrator or his/her spouse developed an animosity with one of the parties or the party’s spouse after the initiation of the proceedings; provided that such animosity was not developed with the intent of challenging the arbitrator.
• If the arbitrator’s divorced spouse (with which the arbitrator has a child) or if one of the arbitrator’s relatives (or his/her spouse’s relatives) up to the fourth degree (parents, grandparents, children, grandchildren, siblings, uncles, aunts, and first cousins) have an ongoing dispute in court with one of the parties of the dispute or his/her spouse; provided that such dispute was not raised for the purpose of challenging the arbitrator.
• If one of the parties is the arbitrator’s servant, or if the arbitrator is used to eat or live with one of the parties, or if he/she had received a gift from one of the parties shortly before or after initiating the arbitration.
• If the arbitrator has an animosity or amity with one of the parties to the point that it is likely that he/she cannot rule without bias (see Article 96 of the Saudi Law of Civil Procedures).

The Arbitration Law also specifies additional grounds for challenging an arbitrator, including:

• The presence of circumstances that create justifiable doubts about his impartiality or independence.
• If the arbitrator lacks the qualifications agreed upon by the parties.
• If the arbitrator lacks the legal requirements to be appointed as arbitrator (see 4.1Limits on Selection above).

Furthermore, a party cannot challenge an arbitrator he 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, then 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 permitting 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 his independence and impartiality from the time of his appointment and throughout the arbitration process. Please refer to Section 4.2Default Procedures above for more details.

For matters which may not be referred to arbitration under the governing law of the jurisdiction, please refer to 3.2Arbitrability above.

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 absent a clear violation of the law.

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 multi-party arbitration directly, Article 13 of the Implementing Regulation allows the arbitral tribunal to approve the intervention or joinder of a third party, provided all parties, including the third party, give their explicit consent. Absent 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. The tribunal, therefore, at the request of either party, may 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. 

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:

• Arbitration proceedings begin on the day the request for arbitration is received by the respondent, unless otherwise agreed by the parties (Article 26).
• The parties can agree on the arbitration venue, whether within the Kingdom or abroad. If no agreement is reached, the tribunal will determine the venue based on the case's circumstances and may convene at any location it deems suitable for deliberation, hearings, or inspections (Article 28).
• Arbitration is conducted in Arabic unless the parties or tribunal agree on a different language. The tribunal may also require translations of documents submitted (Article 29).
• The plaintiff must submit a written statement of claim, including all relevant details and evidence, within the agreed or tribunal-determined timeframe. The defendant must respond with a written statement of defence within the same timeframe (Article 30).
• All briefs, documents, and evidence must be shared with both parties (Article 31).
• Parties may amend or supplement their claims or defences during the proceedings, provided this does not delay the arbitration (Article 32).
• The tribunal will hold hearings to allow parties to present their cases, unless otherwise agreed. Hearings must be properly notified, and minutes of hearings are recorded and shared with the parties (Article 33).
• If the plaintiff fails to submit a claim statement without justification, the tribunal must terminate the proceedings, unless the parties agree otherwise. If the defendant fails to respond, the tribunal must continue the proceedings, unless the parties agree otherwise (Article 34).
• The tribunal may proceed and issue an award based on available evidence if a party fails to attend a hearing or submit documents requested by the tribunal (Article 35).
• Unless agreed otherwise, the arbitral tribunal may appoint one or more experts to provide reports on specific issues, with the appointment and findings communicated to both parties. Each party must provide the expert with relevant information and allow access to necessary documents. The tribunal will resolve any disputes with the expert and ensure both parties can review and comment on the expert's final report (Article 36).
• The tribunal is required to render the final award within 12 months from the start of the arbitration unless otherwise agreed by the parties. The tribunal may extend this period by up to six months. If the tribunal does not issue the award within this extended time, a party can ask the competent national court to either set a new deadline for the award or terminate the arbitration. If an arbitrator is replaced, the deadline for issuing the award is extended by an additional thirty days. (Article 40).
• The arbitration award must be written, reasoned, and signed by the arbitrators (Article 42(1)).

Arbitrators shall exercise their mission in compliance with the duties of impartiality and independence (see Article 16 of the Saudi Arbitration Law).

As to the powers attributed to the arbitral tribunal, these include inter alia the following:

• ordering interim relief and conservatory measures if granted by the parties;
• issuing interim and partial awards;
• deciding on its own jurisdiction;
• determining procedural rules if the parties do not agree;
• appointing experts;
• assessing, admitting, and weighing evidence; and
• deciding the place of arbitration if not agreed upon by the parties and holding meetings/hearings where it deems appropriate.

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 also see our answer to question 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 choose 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. 

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 newly enacted Saudi Evidence Law issued by Royal Decree No. (M/43) dated 26/5/1443H (corresponding to 30/12/2021 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:

• documentary evidence;
• witness statements;
• expert reports;
• site inspections ordered by the tribunal.

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 law allows such a request.
• The document is a joint document that serves mutual interests or establishes reciprocal obligations and rights.
• The opposing party relies on the document at any stage of the case.

The request must include:

• a detailed description and content of the document;
• evidence indicating the document is in the opposing party's possession;
• the facts which the document will be used to evidence, and the grounds for the production of the document.

Article 35

If the opposing party acknowledges possession or remains silent, or if the applicant adequately substantiates his request, then 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, then the court will accept 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 his claim, then 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:

• the document is specified or identifiable;
• it is relevant to the lawsuit or reveals facts pertinent to it;
• it is not confidential or protected by trade secrets under the law or pursuant to the parties’ agreement;
• refusal to comply with the court’s order may be deemed presumptive evidence of the document’s relevance.

Article 37

The court can:

• order a third party to produce a document in their possession;
• request a public entity to provide a certified copy of a document if the litigant cannot produce it. The court may also seek verbal or written information from the public entity if permitted by law.

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:

• ordering provisional or precautionary measures before or during arbitration proceedings, upon request by either party or the arbitration tribunal;
• issuing orders of judicial delegation upon request by the arbitration tribunal;
• assisting with arbitration proceedings, such as summoning witnesses or experts, ordering the submission or review of documents, or other necessary actions.

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.

Article 39 of the Saudi Arbitration Law outlines the requirements for an arbitral award:

• The award must be made by majority vote if the tribunal consists of multiple arbitrators. Deliberations must be held in privately.
• If a majority decision is unattainable, the tribunal has 15 days to appoint a casting arbitrator. Failing that, the competent court will appoint one.
• Procedural decisions can be issued by the presiding arbitrator if both parties or all tribunal members authorise this in writing, unless agreed otherwise.
• If the tribunal is authorised to settle the dispute amicably, the settlement award must be unanimous.
• The tribunal may issue provisional or partial awards before the final award, unless the parties agree otherwise.

Article 42 of the Saudi Arbitration Law provides further requirements:

• The award must be in writing and signed by the majority of arbitrators. If any arbitrator refuses to sign, their reasons must be indicated.
• The award must include the reasoning leading to the decision.
• The award must include the names and addresses of the parties, the names, addresses, nationalities, fees, and titles of the arbitrators, a copy of the arbitration agreement, a summary of the parties’ requests, submissions, and documents, the dispositive part of the award, the date and place of issuance.

Article 40 addresses the time limits for delivering an arbitral award:

• The tribunal must render the final award within the period agreed upon by both parties. In the absence of such an agreement, the award must be issued within 12 months from the commencement of arbitration proceedings.
• The tribunal may extend this period by up to six months unless the parties agree to a longer extension.
• If the award is not issued within the stipulated period, either party can request the competent court to specify an additional period or terminate the arbitration proceedings. In such cases, either party may then file a case with the competent court.
• If a new arbitrator is appointed, the period for the award extends by an additional thirty days.

Article 43 and Article 44 of the Saudi Arbitration Law outline the procedural requirements for handling and submitting the arbitration award:

• Article 43(1) specifies that the arbitration tribunal must provide each party with a true copy of the arbitration award within fifteen days from its issuance.
• Article 44 requires the tribunal to deposit the original award, or a signed copy of it, in its original language with the competent court within the same timeframe set in Article 43. If the award is in a foreign language, it must be accompanied by an Arabic translation certified by an accredited translator.

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 like 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.

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:

• there is no arbitration agreement, or if it was void or voidable, or if its duration had lapsed;
• either party to the arbitration agreement was, at the time of the conclusion of the arbitration agreement, fully or partially incapacitated, according to the law governing said person’s legal capacity;
• either party to the arbitration was unable to present its case due to not receiving proper notice of the arbitrator's appointment or the arbitral proceedings, or for any other reason beyond the party’s control;
• the arbitral award excluded the application of any rules agreed upon by the parties that ought to govern the subject matter of the dispute;
• the composition of the arbitral tribunal or the appointment of arbitrators was carried out in a manner that conflicts with the Saudi Arbitration Law or the parties’ agreement;
• the arbitral award ruled on matters not included in the arbitration agreement or exceeded the limits of that agreement.  However, if the issues within the scope of the arbitration can be separated from those not included, the annulment will only affect the latter parts; or
• the arbitral tribunal fails to meet the necessary conditions for the award, thereby affecting its substance, or if the award is based on void arbitration proceedings.

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 (i) the award violates provisions of Shari’ah law and public policy in the Kingdom; (ii) the award violates the arbitration agreement; or (iii) the subject matter of the dispute cannot be referred to arbitration as clarified in Article 2 of the Saudi Arbitration Law.

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 either (i) the agreed timeframe, or (ii) thirty days of discovering the violation, then that party is 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 courts’ 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 1952 Arab League Convention on the Enforcement of Judgments and Arbitral Awards; the 1985 Riyadh Convention on Judicial Cooperation between Arab League States; and the 1997 GCC Convention for the Execution of Judgments, Delegations and Judicial Notifications.

The Saudi Arbitration Law and the Enforcement Law outline the procedure for enforcing an arbitral award in the Kingdom.  We provide below 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:

• the original award or a certified copy;
• an authentic copy of the arbitration agreement;
• an Arabic translation of the award, certified by an accredited entity, if the award is not in Arabic; and
• proof of the award's deposit with the competent court, as required by Article 44 of the Saudi Arbitration Law (see 10.1 Legal Requirements).

Enforcing a Foreign Arbitral Award

To enforce a foreign arbitral award in Saudi Arabia, the following conditions must be met:

• Reciprocity between Saudi Arabia and the jurisdiction where the award was issued must be established. The burden of proving reciprocity lies with the party requesting enforcement.
• The award must be issued by a tribunal with jurisdiction according to the applicable law, and its subject matter must not fall under the exclusive jurisdiction of Saudi Arabian courts.
• The parties must have been notified of the arbitration proceedings, properly represented, and given a reasonable opportunity to present their case. If the party against whom enforcement is sought did not participate in the arbitration, then the party requesting enforcement must prove that the respondent was notified of the proceedings.
• The award must be final.
• The award must not contradict another judgment or court order issued on the same subject in Saudi Arabia.
• The award must not violate Saudi Arabia’s public policy (see Article 11 & Article 12, Enforcement Law).

Enforcement Procedure

The enforcement procedure typically includes:

• Submitting the enforcement request to the Enforcement Court through the Saudi Ministry of Justice’s Najiz portal.
• The court reviews the request within one to three days to assess procedural aspects and refer it to an enforcement judge.
• The enforcement judge issues an order within three to five days, requiring compliance within five days (see Enforcement Law, Article 34 and Article 46).
• If the debtor cannot be notified of the enforcement order within 20 days of its issuance, the enforcement judge will immediately order publication of the order in the most widely circulated newspaper in the area of the court. The debtor will eventually incur the cost of such publication (approximately USD100) in addition to the debt (see Enforcement Law, Article 34).
• If the debtor does not voluntarily comply with the enforcement order, the enforcement court shall then order measures such as bank account attachment, travel bans, or suspension of the commercial register. These actions can be taken five days after the debtor is notified of the order or, if notification is not possible, five days after the order is published in a newspaper (see Enforcement Law, Article 46).

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 ‘sounds 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:

• A petition for enforcement will not be accepted before the deadline for filing a request for annulment has passed. The court will issue an order for enforcement only after verifying that:
• The award does not conflict with any existing court judgments in Saudi Arabia.
• The award does not violate Shari’ah or the public policy of the Kingdom of Saudi Arabia. If the award contains both violating and non-violating parts, only the parts that do not violate these principles may be enforced.
• The award was properly notified to the party against whom it was rendered.
• An order granting enforcement cannot be appealed, but an order denying enforcement can be appealed within 30 days.
• In practice, a competent court would not issue an order declaring the award enforceable until the request for annulment is resolved (usually one decision is issued where the court (i) rejects the annulment request, and (ii) declares the award enforceable).

Foreign Awards & 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 said 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.

Special Cases Against Saudi State or Saudi Governmental Entity

If the award pertains to a commercial transaction with the Saudi State or a Saudi government entity, enforcement proceedings must be commenced before the specific Administrative Courts (the BoG) (see Law of Enforcement before the Board of Grievances issued pursuant to Royal Decree No. (M/15) dated 27/01/1443H (04 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.

During the Study Period, out of 131 applications to annul awards, 92% were dismissed, while only 3.8% were fully annulled due to Shari’ah violations or breaches of public policy. 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 (see here).

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 5/06/2018 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 11/10/2020 AG). The Rules governs 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 counsels 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 like 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 Regulation). For further details, please refer to the answer to question 5.7 Jurisdiction Over Third Parties above.

In multi-party arbitrations under the SCCA Rules, the provisions for handling joinder as specified in the 2023 SCCA Rules will apply.