Saudi Center for Commercial Arbitration
عربي

Overview

Accelerated Proceedings for Small to Midsize Claims 

The Expedited Procedure Rules (Appendix II of the Rules) are designed for disputes of reduced size or complexity, where the complete procedural protocol provided by the Rules is not justified.

They enable parties to resolve their disputes on average in six months with a fee reduction of 20% when compared to standard arbitration. First adopted on October 15, 2018, and revised on May 1, 2023, they automatically apply where the aggregate amount in dispute does not exceed SAR 4,000,000 (exclusive of costs of arbitration).

But parties may opt into the Expedited Procedure Rules regardless of the aggregate amount in dispute. They apply alongside the Rules and prevail over the Rules in case of conflict. 

Key Features
  • The process is more streamlined and features abbreviated time limits.
  • Only one Arbitrator is appointed to hear the case on a single hearing day. 
  • The Arbitrator must issue the final award within 30 days from the date of closure of the proceedings, or within 180 days from the date of the Arbitrator’s appointment, whichever event occurs first. 
  • The Arbitrator may decide the dispute solely based on written submissions.

Model Clause

Standard Arbitration Clause

Parties who want to resolve their disputes through SCCA must agree to SCCA-administered dispute resolution in accordance with the SCCA arbitration or mediation rules. This provides a legal basis for referring the dispute to SCCA and to establish its jurisdiction to administer the proceedings.

"Any dispute, controversy, or claim arising out of or relating to this contract, or the breach, termination, or invalidity thereof, shall be settled by arbitration administered by the Saudi Center for Commercial Arbitration (the “SCCA”) in accordance with the SCCA Arbitration Rules."

Adaptations to SCCA Standard Clauses

Parties can tailor the SCCA standard clauses to their specific needs by including additional elements such as the number of arbitrators, selection method, place of arbitration, and language of arbitration.

If parties wish to utilize the Expedited Procedure Rules for disputes that exceed SAR 4,000,000, they must opt in by explicitly adding a provision to the following effect:

“Any dispute, controversy, or claim arising out of or relating to this contract, or the breach, termination, or invalidity thereof, shall be settled by arbitration administered by the Saudi Center for Commercial Arbitration (the “SCCA”) in accordance with the SCCA Expedited Procedure Rules [regardless of the amount in dispute / provided the amount in dispute does not exceed SAR [__] at the time of filing the Request for Arbitration].”

According to Article 36(3) of the Rules, the SCCA can publish any award, order, decision, or other ruling in an anonymized or redacted form unless a party objects before the arbitration concludes. If parties wish to prevent publication, they must explicitly add a provision to the following effect:

“No award, order, or decision made in the arbitration shall be published.”

If parties choose a substantive law to govern the contract or the arbitration agreement but wish to subject such law to Shari’ah (especially when the place of arbitration is not Saudi Arabia), they may add a provision to the following effect:

“The law governing the [contract and/or arbitration agreement] shall be [__] to the extent that such law does not conflict with Shari’ah as outlined in the [e.g., Shari’ah Standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)], in which case Shari’ah shall take precedence.”

According to Article 37(4) of the Rules, the default law governing the arbitration agreement shall be the law of the place of arbitration. If parties wish to choose another law, they must explicitly add a provision to the following effect:

“The law governing the arbitration agreement shall be [__].”

Standard SCCA Mediation-Arbitration Clause
“Any dispute, controversy, or claim arising out of or relating to this contract, or a breach, termination, or invalidity thereof, the parties hereto agree first to try to settle it by mediation administered by the Saudi Center for Commercial Arbitration (the “SCCA”) in accordance with the SCCA Mediation Rules. If settlement is not reached within [__] days after service of a written request for mediation, the dispute, controversy, or claim shall be settled by arbitration administered by the SCCA in accordance with the SCCA Arbitration Rules.”

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