Challenging an Arbitral Award

Overview

  • The Saudi Arabian legal framework for challenging arbitral awards is mainly defined by the two following legal instruments:

    • Saudi Arabia Royal Decree No. M34/1433 Arbitration Law (Saudi Arabia Cabinet Decision No. 156/1433 Approving the Arbitration Law) abrogating Saudi Arabia Royal Decree No. M46/1403 regarding the 1983 Arbitration Law.

    • Saudi Arabia Cabinet Decision No. 541/1438 Approving the Implementing Regulation of the Arbitration Law.

  • Saudi Arabia Royal Decree No. M34/1433 (Saudi Arabia Cabinet Decision No. 156/1433) is based on the UNCITRAL Model Law on International Commercial Arbitration. This marks Saudi Arabia's intention to incorporate international arbitration practice into its national legal framework through Saudi Arabia Royal Decree No. M34/1433 (Saudi Arabia Cabinet Decision No. 156/1433). This reform of the arbitration legal framework is motivated by one of Saudi Arabia's main objectives which is to attract foreign investments and improve the overall business environment. However, it should be noted that Saudi Arabia Royal Decree No. M34/1433 (Saudi Arabia Cabinet Decision No. 156/1433) has introduced certain modifications to the UNCITRAL Model Law on International Commercial Arbitration in order to ensure compliance with Islamic Sharia.