The Range of Possibility to Resort to Arbitration in Disputes in International Administrative Contracts Under Saudi Law

Abstract

The growing global economy has influenced worldwide regulatory requirements -in particular, regarding contracts that have become transnational, whether between individuals, between states or between states and individuals. As a result, if a dispute arises, resorting to national courts can be challenging due to the backgrounds of various parties and the role of domestic regulations. In this context, the Saudi government has recognised the necessity to provide legal recourse for foreign contractors, such as the ability to resort to arbitration. This study examines the rules that govern public-private arbitration in the Kingdom of Saudi Arabia, ranging from ‘prohibition‘ to ‘permission‘, including certain external influences. Notably, an overview of how the regulations have changed over time, up to the present, assists in understanding the Saudi position in the ongoing academic debate on this subject. Recently, with Vision 2030 in Saudi Arabia, the government has been working to update its regulations in order to become more attractive for foreign parties, with a view to supporting the development plan as regards government projects, in particular. This study therefore investigates the framework of legal regulations related to public arbitration by critically analysing them, in order to determine the extent to which Saudi law has the flexibility to welcome international arbitration and the extent to which the Saudi regime is keeping pace with international arbitration rules. Consideration is given to government tender and procurement, arbitration law and foreign investment laws. It is obvious that Saudi law has been implementing international arbitration successfully in contracts in recent years, being comparable with other integrational norms. However, there remain some restrictions and some contradictory rules that continue to have a detrimental impact on the overall legal environment