SCCA publishes its annual report highlighting key activities and achievements
Published Date: 15/01/2019
The Saudi Center for Commercial Arbitration published a detailed report titled “Institutional Arbitration in Saudi Arabia: A National Vision.” Supported by images and statistics, it includes a summary of SCCA’s most significant work, activities and remarkable achievements during a period of only about 800 days it’s since its official launch in October 2016 through the end of December 2018. This report reflects the major support provided by the government of the Custodian of the Two Holy Mosques and the Crown Prince, God protect them, in addition to the continued support of the Ministry of Justice and the Ministry of Commerce and Investment.
The report consists of six parts. The first part includes a brief review of the history of arbitration in the Kingdom and the origin of SCCA. A decision by the Council of Ministers established SCCA as the first institutional arbitration center in the Kingdom and also made it the Kingdom’s official representative in the field of commercial arbitration locally and internationally. This part of the report also reviews the most important moments in SCCA’s founding, such as the constitution of its Board of Directors for its first two terms. The Board’s members are nationally respected leaders who have emerged in various disciplines, such as the legal industry, arbitration, the business and economic sectors, and more. Another major moment was forming a strategic partnership with one of the most recognized and prestigious institutional arbitration centers in the world, the American Arbitration Association, (AAA) and its international branch, the International Centre for Dispute Resolution (ICDR), in New York. This partnership began in the early days of SCCA’s founding and is still ongoing. It has manifested in a professional partnership to prepare arbitration and mediation rules for SCCA in accordance with the latest and best international, time-tested standards, the practical training of SCCA personnel, and the creation of SCCA’s regulatory structure as one of the region’s most advanced international centers.
The second part of the report highlights SCCA’s innovativeness and the depth of its regulatory structure, such as its arbitration rules, mediation rules, various codes of ethics, and the Guide to Drafting ADR Clauses. Developing these publications took a select group of international experts more than six months of skillful work, equivalent to 144 days or approximately 1,150 hours of work. With its international partners and top experts, SCCA issued, in this brief period, three codes of ethics, five internal policies, and three procedural guides. Each procedural guide seeks to detail all necessary stages in the life cycle of an arbitration proceeding, from receipt of the claim to the rendering of the award, by explaining the policies and procedures for each stage and the person in charge of implementing them, and the expected timeline for each stage. Preparing these guides took approximately 365 days. SCCA also marked a qualitative achievement in launching three additional arbitration products that are considered among the most up-to-date in the industry. These products, which SCCA launched within less than 24 months from its launch, are the Emergency Arbitration Procedures, the Expedited Procedures, and the Online Dispute Resolution Protocol. This is practical evidence that the institutional arbitration industry is extremely meticulous, and SCCA studied the industry’s most significant components and mechanisms for achieving the national goal of having an effective institutional arbitration industry following best international practices.
The third part of the report highlights the noteworthy number of cases that SCCA has already registered in less than two years since its launch. Some of the cases are worth more than US $100 million, and the parties are both domestic and international, including parties from Germany, the United States, the United Kingdom, and France. The cases also represent a diversity of fields, such as banking, capital markets, construction, distribution, and more.
Given that the work of international arbitration centers requires effective communication with all relevant parties, the fourth part of the report presents figures reflecting the major, round-the-clock effort that has been made in communications. Most notably, SCCA has connected and conducted meetings with more than 120 government agencies, 250 private-sector entities, 100 local and international law firms, and 30 centers and organizations linked to alternative dispute resolution, reaching out to more than 50 arbitration centers and international organizations.
In line with the Council of Ministers’ decision that SCCA would be the Kingdom’s official representative internationally in arbitration, the fifth part of the report focuses on international communications and representation efforts, such as representing the Kingdom at international gatherings and meetings of the United Nations Commission on International Trade Law (UNCITRAL). SCCA also has actively engaged in cooperation agreements with international institutions and participated in international conferences and events.
Examples of professional development covered by the report include signing an exclusive agreement with the Chartered Institute of Arbitrators (CIArb) to provide fellowship programs in international arbitration in the Kingdom of Saudi Arabia, for the first time in Arabic and English. CIArb’s history dates back more than 100 years, and it is renowned for its prestigious and comprehensive training programs as well as its over 16,000-strong membership base covering more than 130 countries. SCCA’s report also mentions that more than 800 participants have benefited from unique training programs in arbitration, mediation, and contract drafting skills.
As for events and conferences, SCCA held its first international conference in late 2018 addressing “Institutional Arbitration: Its Importance and Impact for Economic Transformation and Investment.” The two-day event featured more than 52 speakers. Approximately 1,000 people from around the world attended the conference and its accompanying events, included six ministers.
This report illustrates SCCA’s role as part of the major historical transformation that the Kingdom of Saudi Arabia is experiencing, especially in facilitating the conduct of business and encouraging local and international investment. SCCA is highly committed to contribute to achieving the strategic plans and objectives contained in the Kingdom’s Vision 2030 and its associated programs.