History
The need for fast effective commercial dispute resolution has been recognized for many years in Saudi Arabia. The legislative authority took action, resulting in a series of regulations related to enhancing arbitration.
In 1350H -1931G, the Saudi Commercial Court Law was adopted. That law contained a few articles relating to arbitration. In 1389H -1969G, the Saudi Labor Law similarly contained articles referencing arbitration as a dispute mechanism for labor-related disputes.
To meet the demand of a rapidly developing economy, the Kingdom issued its first modern Arbitration Law in 1403H – 1983G. More recently, the Kingdom adopted its’ latest version of the Arbitration Law in 1403H – 2012G, based on the UNCITRAL Model Law.
To further enhance both local and foreign investment in the Kingdom, Cabinet Ministerial Resolution No. 257 adopted in 1435H -2014G established the Saudi Center for Commercial Arbitration (SCCA).
Saudi Arabia is party to the core international arbitration conventions, including:
Riyadh Convention on Judicial Cooperation between States of the Arab League – Adopted 1406H – 1985G
The Riyadh Convention covers the recognition and enforcement of both the court judgments and the arbitral awards among and between the Arab states.
New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards – Adopted 1414H -1994G
Adopted in 1958, and entered into force in 1959, the Convention provides an internationally recognized system for national court review, enforcement and/or set aside of foreign arbitral awards. The convention also requires national courts to refer parties to arbitration when they have entered into a valid agreement to arbitrate that is subject to the Convention.
GCC Convention for the Execution of Judgments, Delegations and Judicial Notifications – Adopted 1418H – 1997G
All GCC states adopted this convention which covers the recognition and enforcement of both GCC court judgments and arbitral awards generally, without a review on the merits.