Reflecting Support and Trust in Institutional Arbitration in Saudi Arabia: SCCA Arbitration Clause in MCI’s Model Contracts

Reflecting Support and Trust in Institutional Arbitration in Saudi Arabia: SCCA Arbitration Clause in MCI’s Model Contracts

Published Date: 03/06/2018

 

Saudi Ministry of Commerce and Investment (MCI) has recently included the Arbitration Clause of the Saudi Center for Commercial Arbitration (SCCA) in three MCI’s Model Contracts.

This breakthrough development comes in efforts to encourage investment environments in the kingdom through full support of Institutional Arbitration, officially represented by SCCA. Saudi Vision 2030 aims to establish a stable yet flexible local and foreign investments environments and Institutional ADR practices is part and parcel of this mission.

The Arbitration Clause mandates SCCA to administer disputes as per SCCA’s Arbitration Rules published in 2016 in accordance with best international standards.

MCI’s three Model Contracts, Commercial Proxy Contract, Commercial Distribution Contract and Franchise Contract; provide the flexibility and speed desired by both local and foreign investors settling any dispute that may arise at SCCA. This move by MCI manifests strong government direction towards a more attractive and competitive investments environment in the kingdom.

On his part, Dr. Hamed Merah, SCCA’s CEO, commended such development thanking MCI’s continuous support of the center led by HE. Dr. Majed AlQasabi, Minister of Commerce and Investment. Dr. Merah states that SCCA welcomes to administer all business cases from both local and international investors. He further emphasized SCCA’s readiness through set of Arbitration and Mediation Rules built in strategic partnership with the leading AAA-ICDR and in accordance with best international standards of institutional arbitration. SCCA takes pride to have built a team of high caliber trained in international centers to ensure best case management techniques are met and allowing SCCA’s world class roster members to arbitrate cases in the most professional manner.

He added that “The localization of institutional arbitration in Saudi Arabia through the establishment of SCCA as a national institution with international standards working in harmony with the judiciary reflects the high importance given to providing an efficient alternative dispute resolution competitive option in Saudi Arabia that may not be found somewhere else.”