Alternative Dispute Resolution in Public-Private Partnership Contracts in Saudi Arabia: Historical Context and Contemporary Developments

Abstract

This dissertation investigates the underexplored role of contract details and alternative dispute resolution (ADR) practices in Public-Private Partnership (PPP) agreements within the Saudi Arabian context. Despite the global rise of PPPs as a strategic tool for infrastructure development and economic diversification, legal scholarship has paid limited attention to the governance structures that underpin these complex arrangements. Drawing on transaction cost theory, institutional analysis, and law and development frameworks, this research examines how ADR methods can enhance the implementation of PPP projects by addressing legal, technical, financial, and cultural challenges. Through qualitative and empirical legal research, including semi-structured interviews with attorneys, academics, policymakers, investors and economists, the dissertation explores the practical application of ADR in Saudi PPP contracts. It highlights the influence of recent legislative reforms, particularly the 2021 Privatization Law and arbitration regulations, which formalize previously informal dispute resolution practices. These reforms aim to reduce transaction costs, increase legal certainty, and foster trust among stakeholders. The dissertation situates ADR within Saudi Arabia’s historical trajectory of privatization efforts since the 1970s, revealing persistent legal and institutional barriers such as conflicts of law, enforceability issues, and jurisdictional ambiguities. It emphasizes the importance of aligning informal dispute resolution practices with formal legal frameworks to support the delivery of complex PPP projects involving diverse stakeholders and cross-border legal regimes. Ultimately, this research contributes to the broader discourse on PPP governance by offering a context-specific analysis of ADR in Saudi Arabia. It provides valuable insights into how legal institutions, cultural norms, and economic imperatives shape the perception and implementation of dispute resolution mechanisms in PPPs. The findings underscore the potential of ADR to mitigate risks, enhance cooperation, and facilitate the successful execution of nationally significant infrastructure projects.