SCCA Showcases its Experience in Digitalizing Arbitration at the UN Headquarters in Vienna

SCCA Showcases its Experience in Digitalizing Arbitration at the UN Headquarters in Vienna

Published Date: 13/10/2024

The Saudi Center for Commercial Arbitration (SCCA) concluded its participation at the 80th session of UNCITRAL Working Group II on Dispute Settlement, recently held in Vienna and attended by 63 States members of UNCITRAL in addition to representatives of relevant international organizations.


The 80th session of Working Group II addressed a vital issue, namely, the recognition and enforcement of electronic arbitral awards. In light of the increasing use of technology in commercial dispute resolution, UNCITRAL had mandated Working Group II to identify problems associated with such technologies and explore possible solutions in that regard. 


In this context, as part of its 80th session, Working Group II held a two-day colloquium at UN Headquarters on the digitalization of arbitration in light of modern international practices, aimed at assessing issues related to electronic arbitral awards, electronic signatures, and digital communications. SCCA participated in the colloquium alongside major international arbitration centers to present its experience in adopting digital means of issuing and signing arbitral awards, and the related challenges. It was the only participating arbitration center from the Middle East and North Africa region. 


Speaking during a panel discussion on “Electronic Arbitral Awards from the Perspective of Arbitration Centers,” SCCA CEO Dr. Hamed bin Hassan Merah highlighted the digital aspects of rules and practice at SCCA. 


Dr. Merah said that forms of the word “electronic” appear 12 times in the 2023 version of the SCCA Arbitration Rules. For example, Article 25 promotes the use of technology in the management of arbitration cases, and Article 36 provides for issuing arbitral awards electronically if the parties so agree.


In terms of practice, Dr. Merah said that a digital approach is present at various stages, from the submission of the request for arbitration, which is often done electronically; through the exchange of documents and evidence and the communications between SCCA, the arbitral tribunal, and the parties to the case; to the issuance of arbitral awards.


Dr. Merah added: “Since the 2023 SCCA Arbitration Rules came into effect, the vast majority of arbitral awards circulated to the parties via email. Hard copies are provided upon request or where necessary to satisfy jurisdictional requirements.”


The CEO said that this practice takes place within an enabling environment for digitalization in Saudi Arabia, at the executive, judicial, and legislative levels that enables the use of technological tools and applications in commercial dispute resolution. 


He continued: “Saudi Arabia is rapidly transitioning toward electronic government applications, reflected in its rapid rise in relevant international indexes, including the United Nations E-Government Development Index, in which Saudi Arabia rose from 52nd place globally in 2018 to fourth place globally and first regionally in 2024.” 


As for the judicial framework, Dr. Merah said that the percentage of digitalized justice services rose from 30% in 2015 to 87% this year. There are now 160 judicial services offered electronically through the Najiz platform of the Ministry of Justice, including the deposition of arbitral awards and the filing of motions to annul or enforce arbitral awards, whether local or international. 


At the legislative level, Dr. Merah pointed out that Saudi Arabia has adopted a comprehensive regulatory framework enabling the digital transformation in government services in line with the best international standards and practices. In this regard, he noted several relevant laws, in particular the Electronic Transactions Law, the E-Commerce Law, and the Telecommunications & Information Technology Act.