Saudi Arbitration Law: A change in approach to insurance arbitration
Type
E-journal
Date
15 Jul 2015
Jurisdiction
Saudi Arabia
Taxonomy
Arbitration, General Insurance Law
Copyright
LexisNexis
Relevant company
Clyde & Co
Analysis
The New Arbitration Law came into force in Saudi Arabia on 9 July 2012 ("New Law"). The New Law, based on the UNCITRAL Model Law on International Commercial Arbitration, removed many of the barriers of the previous arbitration law so that businesses could, in theory, have more confidence in arbitration as a means of dispute resolution in Saudi Arabia. At the time the New Law was enacted it was envisaged that it would have a wide reaching impact on both local and international businesses trading in the domestic market. However, with regards to insurance disputes, it is only recently that local litigators have seen a change in approach by the Insurance Disputes Committee ("IDC") towards the New Law and that the insurance market is starting to see the benefits.
There now appears to be a real option for (re)insurers to include in their policies an arbitration clause capable of being upheld and, therefore, it is important for parties to consider the practical impact of their choice of jurisdiction, should any dispute arise under the policy.
Regulation of insurance in Saudi Arabia