Saudi Arabia Introduces Draft Arbitration Law in Line with the UNCITRAL Model Law
Analysis
The law consists of 58 articles and the overall structure and layout is based on the UNCITRAL Model law. The law does not distinguish between local and international arbitration and provides the rules and platform to govern arbitration in Saudi Arabia, including the enforcement of foreign arbitral awards.
The law however makes reference to the fact that when it comes to any agreement on arbitration, the application of foreign law and any other process in relation to this law (including the enforcement of a foreign arbitration law) must be in conformity with the Sharia law. References to the Sharia law principles are made in a number of sections of the law, but the law overall demonstrates a strong and clear commitment by Saudi Arabia to the process of arbitration, and in particular a recognition of the international arbitration process in its modern form, as based on the UNCITRAL Model law.