Overview

Fast-Track Proceedings for Micro Claims 

The Online Dispute Resolution (“ODR”) Procedure Rules (Appendix IV of the Rules) are specifically tailored for the smallest of disputes where the aggregate amount in dispute does not exceed SAR 200,000 (exclusive of costs of arbitration).

They are meant to resolve disputes on average in two months using an affordable flat rate for small legal budgets. First adopted on October 15, 2018, revised once before on July 1, 2021, and again on May 1, 2023, they apply alongside the Rules and prevail over the Rules in case of conflict.

Key Features

• The SCCA Court directly appoints a sole Arbitrator immediately after the arbitration commences. 
• The Arbitrator issues the final award within 30 days from the date of his or her appointment. 
• Unless the parties agree, or applicable law requires, otherwise, the final award is signed electronically (the “e-award”) and circulated by SCCA to the parties using SCCA’s ODR platform or email. 
• The e-award is typically based on the parties’ written submissions, unless the parties agree otherwise, or the Arbitrator deems it necessary to hold a hearing via phone or video conference.

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.

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.”