1- What is arbitration?

A private, consensual, flexible decision-making process for resolving business disputes in a binding and enforceable manner. In arbitration, parties agree to submit their dispute to an independent and impartial decision-maker (Arbitrator) appointed by mutual consent or statutory provision. Arbitrators hear evidence and argument and issue final and binding decisions (the ”Award”).

2- What are the benefits of arbitration?

Time and cost efficient dispute resolution with flexible confidential procedures between the parties and the tribunal. Further, it provides the parties the freedom to choose the arbitrators.

3- What is the official arbitration rules for the SCCA?

Effective on 1437 – 2016 and Based on the internationally recognized  UNCITRAL Arbitration Rules, the SCCA Rules have been created to provide parties with a clear, concise and efficient dispute resolution procedure from filing the case until the issuance of the arbitral award. In addition to the primary features of the UNCITRAL Rules, SCCA Rules have features reflecting the key benefits of, and most recent innovations in institutional arbitration. SCCA Rules adopt the best practice standards of leading international arbitral institutions, particularly AAA-ICDR. To preview the SCCA Arbitration Rules, kindly press here.

4- What are the kinds of disputes that could be settled by arbitration?

Civil and commercial disputes provided that the parties agree to arbitrate such dispute except for the personal status disputes.

5- How do parties access arbitration?

Parties to a dispute can access arbitration procedure by mutual agreement. A detailed description of SCCA arbitration procedure can be consulted here.

6- Where do I file my case for arbitration?

You can file your case through SCCA website www.SADR.org or by visiting the SCCA location at: Council of Saudi Chambers – Saudi Center for Commercial Arbitration, 8th floor. King Fahad Branch Rd, Al Mutamarat, Riyadh, KSA.

7- When to file for an arbitration?

Once a dispute arises and there is an arbitration agreement between the parties, the party initiating the arbitration (the “Claimant”) can initiate arbitration procedures.

8- What is the cost of arbitration?

Arbitration cost differs depending on the amount in dispute. You can consult arbitration fee schedule here.

9- Who can use arbitration?

Any physical or legal persons who are parties to a dispute, whether contractual or non-contractual, can agree to settle their dispute by arbitration.

10- What is the expected duration for arbitration?

The duration also differs depending on the length and complication of the case. In any event, the Saudi Arbitration Law, issued 2012, provides on article 40 that an arbitral award shall be delivered on the time that the parties had agreed upon, and in case the parties did not agree on a time, the award shall be delivered in 12 months from the starting of the arbitration procedures.

11- What is an arbitrator or arbitral tribunal?

A private, neutral person chosen by parties to arbitrate a dispute between them in exchange of compensations. The arbitrator’s authority is limited to the dispute submitted before the arbitrator and such authority does not exceed to another disputes or parties. A single dispute can be deliberate and settled by a sole arbitrators or more.

12- What are the requirements for an arbitrator?

The requirements are that the parties agree on such arbitrator and for an arbitrator to be impartial, independent and has no conflict of interest in the outcome of the dispute.

13- Is it better to choose one or more than one arbitrator?

Arbitration cases differs as to the size and complexity of the dispute. For small and uncomplicated disputes, it is advisable that the parties go with one arbitrator to reduce the arbitration cost; however, with big size and complicated dispute, it may be better for the parties to go with more the one arbitrator which is almost all the time, 3 arbitrators.

14- How an arbitrator is appointed?

Article 12 of the SCCA Arbitration Rules addresses how an arbitrator is appointed. Please click here for the SCCA Rules.

15- Is it possible to challenge an arbitrator after he/she is appointed?

Article 14 of the SCCA Arbitration Rules explained the ground and the procedures for challenging an arbitrator.

16- How do parties find an appropriate arbitrator?

SCCA has a list of arbitrator “Panel”. The parties then may choose the arbitrator from the SCCA Panel.

17- When an arbitrator is appointed?

For the SCCA procedures, an arbitrator is usually appointed after the administrative call takes place where the parties agree on arbitration proceedings including the mechanism of appointing the arbitrators.

18- How long does it take for an arbitrator to be appointed?

The SCCA Rules provide that parties shall within 45 days to select arbitrators or agree on a procedure for their selection. However, from a practical point of view the duration of appointing an arbitrator may take more or less than 45 days depending on how cooperative the parties are. The SCCA will remain in constant contact with the parties to facilitate and expedite the appointment of the arbitrators.

19- Who appoints the arbitrator?

The parties have the full freedom to appoint the arbitrator. However, in case of disagreement between the parties, the SCCA will appoint the arbitrator as set out in the Rules.

20- What is an arbitral award?

An arbitral award is a determination on the merits of the dispute by an arbitral tribunal. The arbitral award may include partial determination on the dispute submitted to the arbitral tribunal or the whole dispute.

21- How is an arbitral award issued?

An arbitral award is issued after the hearing is closed. Award should be written and contains its reasons. the SCCA send the award to the parties.

22- How is an arbitral award enforced?

if the arbitral award is to be enforced locally, it can be enforced through the enforcement court in KSA. However, if the arbitral award is to be enforced in a foreign country, it can be enforced in accordance with the law and procedures of such country for enforcing a foreign arbitral award.

23- How to appeal against the arbitration award?

An arbitral award may not be appealed except for the situations set forth in article 50 the Saudi Arbitration Law, issued 2012. According to this law, the competent court hears the challenges of the invalidity of the arbitral awards without having the right to examine the facts and merits of the dispute.

24- How long does it take for the issuance of the arbitral award after the hearing is closed?

The SCCA Rules provide that the final award shall be made no later than 60 days from date of the closing of the hearing, and the parties may extend such period.

25- Who issues an arbitral award?

The arbitral tribunal issues the arbitral award, and the SCCA has no authority to amend the merit of the award.

26- Does the SCCA review the award?

SCCA has an internal process to review the arbitral award. Such review covers typing and computing errors. SCCA review should be adopted by the arbitral tribunal.

27- What is the SCCA administrative fee?

The SCCA administrative fee is divided to filing fee that shall be paid upon the filing of the notice of arbitration and final fee that is due before the preliminary hearing, which is the first contact between the parties and the arbitral tribunal. SCCA fee is determined according to the amount in dispute.

28- What is the arbitrator fee and how is it calculated?

The arbitrator fee is a compensation for the arbitrators’ time for studying and deliberation of the case, and it shall be paid along with the final fee. The arbitrator fee is calculated according to the amount in dispute.

29- When can a party refund the fees and costs?

In case the arbitration case is settled prior to the issuance of the arbitral award, the SCCA, based on internal procedure, will determine the fees and cost incurred during the time of the arbitration, taking in consideration the stage of the procedure. The SCCA then will refund the excess amount to the parties.

30- What is the arbitrator’s fee?

Kindly see the Arbitrator’s fee schedule here.

31- Who pays the SCCA administrative fee?

The administrative fee and costs are paid in equal share between the parties. The tribunal will decide ultimately the allocation of costs in the award. However, the party initiating the arbitration shall pay the filing fee. Such fee is also subject to the allocation of costs and fees in the final award.

32- Who bears the fees and costs of the arbitral tribunal?

The tribunal fees and costs are paid equally by the parties until the arbitral tribunal allocate such costs in its final arbitral award. The tribunal may allocate the costs on one party.