SCCA: Saudi Arabia has become a world class arbitration seat

Published Date: 31/05/2022

Report published on “the online home of international arbitration”

The Saudi Center for Commercial Arbitration reports that the Kingdom of Saudi Arabia has made the leap to become a world class arbitration seat, attractive to local and foreign investment, thanks to the executive, legislative, and judicial support the commercial arbitration industry has received. As a result, Saudi Arabia can now be compared with other seats on the basis of the best standards prevailing in the industry internationally.

In a lengthy report published in the Global Arbitration Review (GAR), the world’s most influential arbitration publication, SCCA noted that the empowerment of the arbitration industry in Saudi Arabia is an ongoing process that must always remain responsive to customer needs and economic conditions. To that end, a strategic initiative continues to ensure that the ADR industry is a key facilitator and pillar of the economic advancement that Saudi Arabia is witnessing in the context of Vision 2030.

The report outlines the international criteria for an arbitration friendly jurisdiction and their applicability to the reality of the arbitration environment in Saudi Arabia; the latest SCCA initiatives to support businesses in this regard, including its successful efforts to promote diversity and recruit top international experts to the SCCA Board of Directors and committees; the collection of the requisite statistics on the effective judicial enforcement of local and foreign arbitral awards in Saudi Arabia; and the growth and diversification of the SCCA caseloads both   in terms of the parties’ nationalities and the business sectors in which the disputes originate.

SCCA highlighted a key manifestation of the Saudi judicial environment’s alignment with international best standards: the low rate at which arbitral awards are nullified in Saudi Arabia. Referencing SCCA’s recent study of judicial judgements, it noted that Saudi appellate courts grant fewer than 6% of the applications to nullify award; thus strengthening confidence in the finality of arbitral awards issued in Saudi Arabia.

SCCA launched of a number of initiatives last year aimed at supporting business sectors in the resolution of commercial disputes. Most importantly, it launched an upgraded version of its Online Dispute Resolution service and adopted amendments to Appendix I of its Arbitration Rules to reduce arbitration costs and make it easier for businesses of all sizes, sectors, and nationalities to avail themselves of SCCA’s conflict resolution services.

In this international report, SCCA stated that its cumulative efforts exerted since its establishment led to the registration of 82 cases last year, totaling SAR 2.1 billion in value. This is 587 percent higher than the previous year and represents 62 percent of the total value of cases registered with SCCA since its establishment.

GAR is the world’s most influential platform and publication among commercial arbitration users and practitioners who want to keep up to date on the latest industry developments. The magazine also publishes a series of highly specialized regional magazines that delve into each region, tracking industry trends and providing uniquely sophisticated and nuanced local and regional analysis.