Starting an Arbitration at the SCCA
Overview
KSA, a country whose laws are based largely on Islamic law, has begun to utilise arbitration officially as a method of dispute resolution increasingly. Arbitration is not new to the region and has been prevalent in the Middle East for centuries. It has roots in Islamic Law, evidenced as a form of dispute resolution in the Qur'an (the Holy Book) and the Sunnah (Prophetic Tradition).
Saudi Arabia Cabinet Decision No. 511/1441 Approving the Commercial Courts Law has emphasised the importance of alternative dispute resolution in commercial cases, making it a pre-cursor to filing certain commercial disputes in court.
KSA’s first arbitration institution, the SCCA was officially launched in 2016 and was established by Saudi Arabia Ministerial Decision No. 257/1435. This was amended by Saudi Arabia Ministerial Decision No. 107/1437. It was founded to administer civil and commercial disputes.
KSA's main legislation in regard to arbitration laws consists of the following:
a. Saudi Arabia Royal Decree No. M34/1433 Arbitration Law and its implementing regulations, Saudi Arabia Cabinet Decision No. 541/1438 Approving the Implementing Regulation of the Arbitration Law; and