Significant developments have been made to Saudi Arabia’s arbitration law in recent years in order to provide comfort to international parties who are party to Saudi-seated arbitrations. The Saudi Arbitration Law has provided a detailed legislative framework for arbitrations within the jurisdiction which is much more closely aligned to international standards.

1. LEGISLATIVE FRAMEWORK

1.1 Overview and historical background

1.1.1 On 16 April 2012, the Kingdom of Saudi Arabia (KSA) brought in new arbitration legislation, the Arbitration Law, by Royal Decree No. M/34 (Arbitration Law) which replaced the Arbitration Law 1983. It came into force on 9 July 2012, 30 days after its publication in the Saudi Gazette.

1.1.2 The Arbitration Law is largely based on the UNCITRAL Model Law and eliminates some of the previously controversial provisions, (eg arbitrators are no longer required to be Muslim and there is no discrimination between genders). The new provisions, such as the reduced role of the court and increased party autonomy has brought the KSA arbitration procedure more in line with other jurisdictions, which should help to make it a more desirable seat for arbitration.

1.1.3 Supplemental pieces of legislation to the Arbitration Law include:

  • the Executive Regulations which were implemented on 22 May 2017 following the issuing of Cabinet decision No. 541/1438 (Regulations). The Regulations provide clarifications to a number of the articles of the Arbitration Law;
  • the Execution Law (Royal Decree No. M/53 of 1433 (2012)) (Execution Law) which applies to the enforcement of arbitral awards in KSA. On 28 February 2013, the Execution Law was also published with a set of Executive Regulations (Cabinet Decision No. 9892 dated 17/04/1434 AH) which provide further clarifications and guidance in respect of the Execution Law (Execution Law Regulations); and
  • The Saudi Centre for Commercial Arbitration (SCCA) has published updated SCCA Arbitration Rules (SSCA Rules), which came into effect on 1 May 2023. One of the key changes in the Rules is the establishment of the SCCA Court, which is responsible for making key administrative decisions related to SCCA-related arbitrators. The SCCA Court comprises experts from different countries with many years of arbitration experience, including international arbitrators, academics, former leaders of arbitral institutions, retired appeal court judges, and high profile practitioners. Professor Jan Paulsson, who is both a practitioner and academic is the current President of the SCCA Court.

2. SCOPE OF APPLICATION AND GENERAL PRINCIPLES

2.1 General principles

2.1.1 The Arbitration Law applies to arbitrations seated in the KSA, as well as to arbitration proceedings from other jurisdictions (where the Parties have agreed that the Arbitration law shall apply).

2.1.2 The Arbitration Law provides the parties with the freedom to choose:

  • the rules that will apply;
  • the arbitrator(s); and
  • the governing law of the dispute.

2.2 Arbitration and Shari’a Law

2.2.1 The KSA legal system is based on Shari’a law which has supremacy over all laws and regulations in the KSA.  As such, any arbitration conducted in the KSA must also comply with Shari’a law.  Consequently, the arbitral procedure, and ultimately the award, cannot contravene the principles of Shari’a as failure to comply could render the award unenforceable in the KSA.

2.3 Arbitration and KSA Public Policy

2.3.1 The KSA as a rule does not recognise and therefore does not enforce awards that violate KSA public policy which is itself mainly based on Shari’a. Therefore, to arbitrate on matters of public policy is akin to arbitrating on the Shari’a itself. This also applies to the enforcement of foreign arbitration awards in the KSA.

2.4 Limitation periods

2.4.1 The Saudi Civil Transactions Law (CTL) and the Commercial Courts Law (CCL) set out distinct limitation periods for legal claims.

2.4.2 Article 295 of the CTL, which governs contractual relationships under Saudi law, provides that claims for breach of contract expire three years from the date the innocent party becomes aware of the breach and the identity of the party in breach and that in all cases all claims for breach will expire ten years from the date of the breach. Further, the CTL emphasises that a right is not extinguished by the statute of limitations.

2.4.3 Article 24 of the CCL prescribes a five-year limitation period for claims falling under the jurisdiction of the commercial court, starting from the date the cause of action accrues. This period can be extended if the defendant acknowledges the claim or the claimant provides an acceptable justification to the court.

2.4.4 This indicates that while the CTL sets a general maximum ten-year limitation for claims for breach of contract, the CCL specifies a shorter five-year period for commercial claims (e.g. claims in negligence). Parties will therefore need to be conscious of the basis of their cause of action, and ensure that arbitration proceedings are commenced based on the applicable limitation periods.

2.5 Representation in Arbitration Proceedings

2.5.1 Under the SCCA Rules, it is explicitly stated that in SCCA arbitrations, parties may be represented or assisted by representatives of their choice, “including foreign legal practitioners regardless of the jurisdiction in which they are based or licensed to practice.”   Whilst there was previously some uncertainty as to whether foreign legal practitioners acting in Saudi arbitrations would be a contravention of the regulations on foreign counsel in Saudi Arabia, the SCCA Rules have since clarified the position in order to confirm party autonomy with respect to the choice of representation.

2.5.2 Article 14 of the Saudi Arbitration Law stipulates the qualifications required for an individual to serve as an arbitrator. These include having full legal capacity, maintaining good conduct and reputation, and possessing at least a university degree in Shari’a law or law. Notably, the article does not prescribe any nationality-based restrictions, thereby permitting foreign legal experts to assume the role of arbitrator, provided they fulfil the aforementioned criteria.

2.6 Third Party Funding

2.6.1 In SCCA administered arbitrations, if there is any third-party funding, the funded party is required to disclose any party who has an economic interest in the arbitration’s outcome in order to ensure transparency.

2.6.2 The Kingdom of Saudi Arabia acknowledges the presence of third-party funding in arbitration proceedings. The SCCA Rules, particularly Article 17(6), obligate parties to disclose the identity of any non-party with an economic interest in the arbitration’s outcome, including third-party funders. This provision reflects a commitment to uphold the principles of impartiality and independence that are the foundation of the arbitration process.

3. THE ARBITRATION AGREEMENT

3.1 Formal requirements

3.1.1 An arbitration agreement is defined under Article 1 of the Arbitration Law as:

“an agreement between two or more parties to refer to arbitration all or certain disputes which have arisen, or which may arise between them in respect of a defined legal relationship, whether contractual or non-contractual. An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate arbitration agreement.”

3.1.2 Arbitration agreements may be made either before or after the dispute occurs. Further, arbitration agreements must be in writing. This includes agreements recorded in electronic or other written means of communication.  Moreover, the Arbitration Law permits the incorporation of an arbitration agreement by reference, provided that the reference clearly specifies that the arbitration agreement itself forms part of the contract.

3.1.3 The parties to an arbitration agreement may be natural persons or juristic entities, provided that the signatory in respect of the latter is authorised to agree to arbitration.  Importantly, it is not permissible for governmental authorities (the scope of which entities are defined by the Saudi Ministry of Finance) to agree to arbitration unless they have obtained approval from the Prime Minister of the KSA, or the law otherwise permits them to do so. However, the Government Procurement Law 2019 (Royal Decree No. M/128 of 1440) provides an exception to this requirement, providing that in the case of government procurement contracts, the approval of the Minister of Finance to the arbitration agreement will be sufficient.

3.2  Separability

3.2.1 The Arbitration Law provides that an arbitration agreement in a contract is considered to be a separate agreement from the other contractual conditions. As such, the invalidity, revocation or termination of the contract in which the arbitration agreement is contained will not result in the invalidity of the arbitration agreement.

4. COMPOSITION OF THE ARBITRAL TRIBUNAL

4.1 Constitution of the arbitral tribunal

4.1.1 Parties are free to select the arbitrator(s). If they fail to come to an agreement, the court can make the appointments. In the case of a sole arbitrator, the Saudi Court of Appeal shall make the appointment at the request of the party seeking to accelerate the arbitration, within 15 days of an application being made.

4.1.2 Where more than one arbitrator is required, each party shall appoint an arbitrator and the two appointed arbitrators shall select a third. Any failures in this regard will result in the court making the necessary appointments within 15 days of receipt of the application.  The application for the court to appoint an arbitrator must include a copy of the request for arbitration and the arbitration agreement.  If the arbitration is being administered by the SCCA Rules, the appointment of an arbitrator will be made by the SCCA Court instead of the Court of Appeal.

4.1.3 The arbitral tribunal must be odd in number  and arbitrators must:

  • be of full legal capacity;
  • be of good conduct and reputation;
  • have a degree in Shari’a law or a degree in law (although in a Tribunal of multiple arbitrators it is sufficient that only the Chairperson holds this qualification); and
  • not have a vested interest in the dispute.

4.1.4 There is no restriction on women serving as arbitrators  in Saudi-seated arbitrations and in April 2021, the SCCA signed the Equal Representation in Arbitration Pledge as a testament to its commitment to gender diversity in international arbitration.

4.2 Procedure for challenging and substituting arbitrators

4.2.1 An arbitrator cannot be disqualified unless they do not satisfy the minimum experience requirements detailed in Article 14 of the Arbitration law (as detailed above) or there are justifiable doubts about his impartiality.

4.2.2 Where there is no agreement between the parties on the procedure for challenging an arbitrator, the party seeking disqualification shall submit a written request to the tribunal setting out the reasons for the challenge. The request must be submitted within five days from the date of learning of the relevant circumstances.

4.2.3 Where an arbitrator is challenged, they can choose to resign without giving reasons and this resignation will not be considered an admission of the reasons for the challenge.

4.2.4 If the challenged arbitrator does not withdraw, or the other party does not agree to the request within five days of it being submitted, the arbitral tribunal shall determine the request within 15 days from the date of receipt. In the event the request is rejected, the request may be referred to the Court of Appeal within 30 days, for a non-appealable decision. If the arbitration is being administered by the SCCA Rules, the challenge of an arbitrator will be determined by the SCCA Court instead of the Court of Appeal.

4.2.5 Further, where an arbitrator is unable or fails to perform their duties, resulting in an unjustified delay to the proceedings and there has been a failure by the arbitrator to withdraw and the parties agree to their withdrawal, then either party may refer the issue to the Court of Appeal for a final decision.

4.2.6 Where an arbitrator needs to be replaced, an alternative arbitrator will be appointed using the procedures followed in the original selection process.  This will result in the suspension of the proceedings until a replacement has been appointed, unless the need for a replacement has arisen due to the disqualification of an arbitrator.

4.3 Arbitrators’ fees

4.3.1 When an arbitrator is appointed, an independent contract is entered into between the arbitrator and the parties regarding the applicable fees. Where no agreement on fees is reached, or where the Court of Appeal itself has made the appointment, the court shall determine these (on a non-appealable basis)  and may request a copy of any contracts concluded with the arbitrators.  Copies of any contracts entered into with the arbitrators shall be deposited at the relevant arbitration institution (being the competent authority administering the case).

4.3.2 The agreed fees will also be documented within the final arbitral award alongside the other costs of the arbitration.

4.3.3 If the arbitration is being administered by the SCCA, the arbitrators’ fees will be determined by reference to the schedule of fees detailed in Appendix I to the SCCA Rules.

5. JURISDICTION OF THE ARBITRAL TRIBUNAL

5.1 Competence to rule on jurisdiction

5.1.1 The Arbitration Law provides for the tribunal to determine its own competence, including challenges relating to the absence of an arbitration agreement, the invalidity of an arbitration agreement and whether the subject matter of the dispute falls within the scope of the arbitration agreement.

5.1.2 The Arbitration Law and the SCCA Rules both require a party objecting to the jurisdiction of the arbitral tribunal to raise such objection at the time of submitting its first defensive pleading (e.g. the Answer to the Request for Arbitration). However, the arbitral tribunal may permit a later application on jurisdiction to be made, if the basis for the delayed application is considered reasonable.

5.1.3 The arbitral tribunal may determine its competence in this regard, either prior to or in conjunction with its decision on the merits of the dispute.  If the decision as to jurisdiction is reserved until the final award, the challenging party may only appeal by applying for the nullification of the award.

5.2  Power to order interim measures

5.2.1 The parties are at liberty to agree to the arbitral tribunal (at one party’s request) ordering interim measures. Further, the arbitral tribunal may ask the party seeking the measures to provide a financial guarantee for the execution of interim relief.

5.2.2 If the party against whom the measures are sought fails to comply, then the arbitral  tribunal may authorise the requesting party to take the necessary measures to execute the tribunal’s order.

5.2.3 Prior to an arbitral tribunal being established, a party may apply to the Competent Court for interim or conservatory measures.

5.2.4 If the arbitration is being administered by the SCCA, the parties may also be permitted to request interim or conservatory measures through the emergency arbitration procedure set out in Appendix III of the SCCA Rules.

6. CONDUCT OF PROCEEDINGS

6.1 General procedural principles

6.1.1 The parties are free to choose the procedure and therefore the institutional rules that apply. However, in the absence of such an agreement, the arbitral tribunal may decide on the procedure it thinks fit.  If the arbitral tribunal determines the procedure, the parties must be informed by the arbitral tribunal of the procedure to be adopted ten days prior to the adoption of that procedure.

6.1.2 The SCCA Rules also grant arbitral tribunals (in proceedings subject to the SCCA Rules) greater powers to supervise and manage the arbitration procedure, including an increased priority to data protection, privacy, and cybersecurity.  The new rules also promotes the use of technology such as in the transmission of electronic documents and signature of the award.

6.1.3 The Online Dispute Resolution Procedure Rules automatically apply to small claims disputes that do not exceed a specific threshold. The rules also govern arbitrators with several contracts and parties, affirming openness and strong arbitral tribunal governance.

6.2 Commencement of arbitration

6.2.1 The claimant must submit a request for arbitration to the respondent to start the proceedings.  The Regulations prescribe that the request must include various details, including: the names of the parties, details of their contractual relationship and the arbitration agreement, details of the dispute, a summary of the request for relief and details regarding the arbitrator proposed (where a sole arbitrator is required) or to be appointed on its behalf.

6.2.2 The proceedings will start the day the request for arbitration is received by the other party, unless agreed otherwise.

6.2.3 If the arbitration is subject to the SCCA Rules, the Request For Arbitration will be deemed to have been delivered to the party or its authorised representative if it is delivered by (i) personal service; (ii) at the place of business; (iii) at the habitual residence; (iv) at the email address which the addressee represents as its authorised email address at the time of such a communication, or (v) if, after reasonable efforts, none of these can be found or delivery fails, at the addressees’ last known place of business or habitual residence.

6.3 Joinder of third parties

6.3.1 The Regulations permit the joining of third parties, provided that both the parties and the third party agree.

6.3.2 If the arbitration is subject to the SCCA Rules, the arbitral tribunal will consider all relevant circumstances in deciding if it is appropriate to join any other party to the proceedings, including whether the arbitral tribunal has prima facie jurisdiction over the additional party, the timing of the request for joinder, possible conflicts of interests, and the impact of the joinder on the arbitration.

6.4 Seat, place of hearings and language of arbitration

6.4.1 The parties are free to agree on the seat of the arbitration, as being in either KSA or abroad.  The Arbitration Law will apply to any arbitration seated in the KSA and to any arbitration seated internationally provided that the parties have agreed to this.  Where there is no agreement, the arbitral tribunal will decide, having regard to the circumstances of the claim and convenience of the parties.

6.4.2 The choice of seat shall not prejudice the arbitral tribunal’s right to hold hearings or deliberations at any place it deems appropriate.

6.4.3 The arbitration shall be conducted in Arabic, unless the parties agree, or the arbitral tribunal determines otherwise.

6.5 Oral hearings and written proceedings

6.5.1 The written proceedings shall be conducted in accordance with the timetable agreed by the parties or directed by the arbitral tribunal.  The Arbitration Law does not prescribe time limits for commencing an arbitration or any time limit for submission of pleadings. Under Shari’a law, there are no prescribed limitation periods, as one of the applicable maxims of Saudi Arabian law is a just right never dies.

6.5.2 In the first instance, the claimant shall send the statement of claim setting out the facts of the claim and the relief requested.  Thereafter, the respondent shall issue its defence and any counterclaim, although a counterclaim may be submitted later if the arbitral tribunal considers there is justification for the delay. Either party can amend or expand upon their claims during the proceedings, unless the tribunal decides otherwise to avoid delay.

6.5.3 Unless otherwise agreed, the arbitral tribunal may decide that written evidence is sufficient to make a decision and dispense with the requirement for a hearing.  Where any hearing is held, the parties must receive sufficient advance notification of the dates.  Once the hearing has taken place, the minutes thereof must be signed by the witnesses, experts and the parties, along with the tribunal. Unless otherwise agreed, the minutes must be distributed to the parties.

6.6 Default by one of the parties

6.6.1 If the claimant fails to submit a written statement of their claim, without reasonable justification, then unless the parties agree otherwise, the arbitration will be terminated.  However, if the respondent fails to submit a defence, without reasonable justification, then unless the parties agree otherwise, the arbitration will continue.

6.6.2 If either party fails to attend the hearing, the arbitral tribunal can make a decision based on the evidence before them.

6.7 Evidence generally

6.7.1 A copy of the evidence relied on by the parties shall be sent to the arbitral tribunal and the other party, including any expert reports or other evidence relied upon. This will take place within the time period agreed upon by the parties or as determined by the arbitral tribunal.

6.7.2 If the arbitration is being administered by the SCCA, there is a preference for witness testimony to be presented in the form of witness statements signed by the witness, unless the arbitral tribunal directs otherwise.

6.8 Experts

6.8.1 The arbitral tribunal may appoint experts to provide reports on the issues in dispute,  and each party shall provide information to the expert and access to documents as required.  Following the issuance of the expert report, the parties shall be given an opportunity to comment upon its contents and the arbitral tribunal may decide (on its own or at the request of one of the parties) to hold a hearing for the examination of the expert.

6.9 Disclosure

6.9.1 The Arbitration Law contains no express provisions governing disclosure. However, the arbitral tribunal may request assistance from the concerned authority  to order the production or inspection of documents.

6.9.2 Under the SCCA Rules, the arbitral tribunal is required to manage the exchange of documents between the parties with a view to maintaining efficiency and economy, and should therefore put in place a process for the exchange of documents that is suited for the nature of the dispute. This typically will be for the exchange of limited categories of documents.

6.10 Confidentiality

6.10.1 The Arbitration Law does not specify that the arbitral proceedings are confidential, but mandates that the arbitral award shall not be published (in whole or in part) without the parties' agreement. There is no rule prohibiting the parties from agreeing on confidentiality provisions withing the arbitration agreement.

6.10.2 Further, in SCCA arbitrations there is a presumption of confidentiality unless the parties agree otherwise.

7. MAKING OF THE AWARD AND TERMINATION OF PROCEEDINGS

7.1 Applicable law

7.1.1 The parties are permitted to agree on the substantive law pertaining to the dispute.  Where there is no agreement, the arbitral tribunal shall apply the substantive law that it considers most relevant to the subject matter of the dispute, taking into account the contract, norms, customs and the usual course of dealing between the parties.

7.2 Timing, form, content and notification of the award

7.2.1 The award shall be issued within the period agreed by the parties but, in the absence of an agreement, the final award will be issued within twelve months from the date of commencement of the arbitration.  However, in all cases, the arbitral tribunal may decide to extend the deadline for issuing the award by a further six months (unless otherwise agreed by the parties). If the arbitration award is not issued by the revised deadline, then either party can ask the court to specify a further deadline or to terminate the proceedings.

7.2.2 If the arbitration is being administered by the SCCA, the SCCA Rules impose a 75-day time limit for the arbitral tribunal to render its award after the proceedings have been closed (ie after the last hearing and any final post-hearing submissions). However, this deadline can be extended at the request of the arbitral tribunal.

7.2.3 In terms of the award itself:

  • it must be written and signed by the arbitrators;
  • where there is more than one arbitrator, the award must be issued by the majority and include reasons for any arbitrators who have not signed it;
  • it must specify the date and place of issue, the names of the parties, the names of the arbitrators, a summary of the arbitration agreement, a summary of the parties’ positions and the expert evidence, as well as details of the award;  and
  • it must also include a determination of the arbitral tribunal’s fees, the expenses of the arbitration and set out how these are to be apportioned between the parties.

7.2.4  A copy of the award must be delivered to the parties within 15 days of issuance.  The arbitral tribunal shall then deposit the original award, and an Arabic translation of the award (if issued in a different language) with the court, also within 15 days of issuance.

7.3  Settlement

7.3.1 If the parties agree on settlement during the proceedings, they can request that the terms of the settlement be recorded before the arbitral tribunal. If this happens, the arbitral tribunal will issue an award on the basis of the settlement, which shall be enforceable on the same basis as a final award.

7.4 Power to award interest and costs

7.4.1 Arbitral tribunals do not have the power to award interest, which is contrary to Shari’a law and is unenforceable.

7.4.2 The Arbitration Law does not contain an express reference to the arbitral tribunal being empowered to award legal costs and as such a specific agreement in this regard will be required. If the parties fail to agree on costs, no costs will be awarded.

7.4.3 However, in respect of arbitrations administered by the SCCA, the SCCA Rules grant the arbitral tribunal discretion to allocate the costs of the arbitration between the parties (taking into account the circumstances of the case), with such costs of the arbitration including the costs of legal representation, the SCCA administrative fees, and the arbitral tribunal’s fees and expenses.

7.5 Effect of the award

7.5.1 Provided the award was issued in accordance with the Arbitration Law, it shall be binding and enforceable against all parties.

7.6 Correction, clarification and issue of a supplemental award

7.6.1 Within 30 days of receiving the award, the parties may request the arbitral tribunal to clarify any ambiguities in the award and the interpretation shall be issued within 30 days of the request being submitted. Any interpretation issued will be viewed as an integral part of the award.

7.6.2 In terms of material errors contained in the award, the arbitral tribunal shall make the required corrections of its own volition or at the request of one of the parties. The correction must be made within 15 days of the date of the award, or within 15 days of receipt of a request to correct.  The correction shall be issued in writing by the arbitral tribunal and notified to the parties within 15 days.  Furthermore, if the arbitral tribunal exceeds its powers as regards the correcting of the award, this could lead to the award’s nullification under the Arbitration Law.

8. ROLE OF THE COURTS

8.1 Involvement and role of the courts

8.1.1 Where a claim is filed in court and the defendant asserts its reliance on an arbitration agreement (prior to the submission of any defence), the court shall decline to hear the case.

8.1.2 Notwithstanding this, the court has jurisdiction over a number of matters relating to the arbitration, including the appointment of arbitrators  and determining the arbitral tribunal’s fees where the parties fail to agree.

8.1.3  Further, either party can request that the court orders interim protective or precautionary measures, such as injunctions or freezing orders, at the request of one of the parties (prior to the commencement of the arbitration proceedings) or at the request of the arbitral tribunal after the proceedings have begun.

8.1.4 In addition, the arbitral tribunal may request assistance from the court in relation to the conduct of the arbitration, such as summoning witnesses to attend or the disclosure of documents.

9. CHALLENGING AND APPEALING AN AWARD

9.1 Nullification of the award

9.1.1 An award may not be challenged except by way of filing a nullification application.  Any nullification action will need to be filed within 60 days of notice of the award.

9.1.2 In order to have the award set aside, the party must bring their case before the Court of Appeal in Riyadh, unless another Court of Appeal within KSA has been agreed.  The circumstances under which an award may be nullified include:

  • if the arbitration agreement was invalid because either party lacked legal capacity;
  • if either party was prevented from submitting a defence for reasons beyond their control;
  • if the award does not adhere to the rules the parties agreed on;
  • if the arbitral tribunal rules on matters not included in the arbitration agreement ;
  • if the award violates Shari’a law or public policy;
  • if the award was contrary to the parties’ agreement; or
  • the subject matter of the dispute is not arbitrable.

9.1.3 The party requesting to have the award set aside must attach to the request the original award, the arbitration agreement and a translation of the award in Arabic. The Court of Appeal will then only be able to adjudicate on the setting aside of the award under Article 50 of the Arbitration Law on the grounds set out above, but will not examine the facts or the subject matter of the dispute.  

9.1.4 If an award is set aside by a court, then the parties can challenge the decision by appealing to the KSA Supreme Court within 30 days of the decision to set aside the award. However, if the nullification application is rejected, this cannot be appealed again.

9.2  Suspension of enforcement

9.2.1 If a party applies to the Court of Appeal to have the award set aside, this does not automatically stay the enforcement of the award unless the applicant requests this and the application is based on serious grounds. Any application for a stay of enforcement must be determined within 15 days and the court may order the provision of a financial guarantee by the applicant party.

10. RECOGNITION AND ENFORCEMENT OF AWARDS

10.1 Recognition and enforcement

10.1.1 Arbitral awards issued in accordance with the Arbitration Law will be enforceable. Before any application for the recognition and enforcement of an award may be filed, however, the prescribed period of 60 days for making a nullification application must have elapsed.

10.1.2 The application for the recognition and enforcement of an award must include the original award (or a certified copy) in Arabic, the arbitration agreement, and proof that the award was deposited with the competent court within 15 days of it being issued. Further, before an enforcement order for the arbitral award can be issued, the court must be satisfied that the award has been properly issued to the party against whom it was issued  and that it does not:

  • conflict with any decision issued by a court, committee or authority that has jurisdiction on the subject of dispute in KSA;   or
  • violate Shari’a Law or KSA public policy.

10.1.3  No appeal against an order for the recognition and enforcement of an award is permissible.

10.2  Execution

10.2.1 Once an order for the recognition and enforcement of the award is issued, the execution thereof in KSA will be governed by procedures of the Execution Law which provides for the execution of both domestic and international judgments and arbitral awards in KSA. 

10.3 International awards

10.3.1 To enforce an international award, it must be verified that:

  • the Saudi courts do not have jurisdiction to hear the matter;
  • the proceedings were in compliance with due process;
  • the award is final in the country where it was issued;
  • the award does not contravene any judgment or order issued in the KSA; and
  • it complies with KSA public policies.

10.3.2 KSA acceded to the New York Convention in 1994 with a reservation that it would be restricted to those awards made in other contracting states.

10.3.3 Therefore, parties to arbitrations seated in jurisdictions which have acceded to the New York Convention, will generally be permitted to present their awards for recognition and enforcement in KSA under the provisions of the Arbitration Law.