Arbitration Lawyers in Saudi Arabia

Overview

Arbitration works based on party agreement to refer their dispute to an arbitration panel instead of the ordinary courts, whether through an arbitration clause in the original contract or a later agreement after the dispute arises.

Arbitration offers greater flexibility in selecting arbitrators and relative procedural speed compared to court litigation, alongside the confidentiality some commercial parties prefer.

Regulatory Basis

Arbitration falls under the Saudi Arbitration Law, which governs procedures for forming the arbitration panel, conducting hearings, and issuing the final award.

The arbitral award is enforced after certification by the competent authority, and this certification may require a separate procedure from issuing the award itself.

How Arbitration Proceeds

Arbitration proceedings begin by triggering the arbitration clause in the contract or agreeing to refer the dispute to arbitration, followed by forming the arbitration panel by selecting one or more arbitrators as the parties agree.

Arbitration hearings proceed with more flexibility than traditional judicial proceedings, ending with an arbitral award binding on the parties that requires later certification for enforcement.

Who Needs This Service

Two parties to a contract containing an arbitration clause who have a dispute that requires triggering this clause instead of going to court.

A company that prefers resolving its commercial dispute confidentially away from the relative publicity of court litigation.

Many foreign companies operating in Saudi Arabia prefer including an arbitration clause in their contracts from the outset, given their familiarity with this path from other markets, but we recommend reviewing this clause's drafting carefully when applied locally, since details like the seat of arbitration, language, and number of arbitrators need drafting that reflects Saudi practice rather than a direct copy from a foreign template.

Additional Considerations

If the original contract didn't include an arbitration clause and a dispute has already arisen, our litigation and advocacy service before the commercial court remains available.

For international contracts involving a party outside Saudi Arabia, this connects with our international and cross-border disputes service to determine the correct competent forum.