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