Arbitration in Administrative Contracts in the Saudi Legal System: An Analysis and Proposal for Expanding Its Use

Abstract

Arbitration, one of the most important means of alternative dispute resolution, is widely used as an alternative to litigation because it saves time, money, and effort, in addition to the simplicity and informality of its procedures. For these reasons, it is preferred by many. Moreover, many countries recognize the use of arbitration and have enacted laws and regulations to govern arbitration procedures, the enforcement of arbitration agreements, and the recognition and enforcement of arbitration awards. Saudi Arabia has recognized and applied the use of arbitration widely for a long time. It also has a well-developed and modern arbitration law which is compatible with the most important developments related to arbitration. Further, it has a strong arbitration environment in terms of the laws governing arbitration, the availability of arbitration centers, and the support of the courts. Arbitration is used in Saudi Arabia for various disputes, such as commercial and employment disputes. However, the use of arbitration in administrative contract disputes is problematic. Saudi Arabian law currently allows arbitration in administrative contract disputes, but its use requires approval from top-level ministers, which greatly narrows the scope of administrative contract disputes that can be subject to arbitration. This dissertation focuses on extending arbitration to include individual administrative contract disputes and government employee disputes. It presents an analysis of the current situation of arbitration in administrative contract disputes to identify the concerns and challenges facing the expansion of the use of arbitration. Finally, the dissertation proposes solutions that ensure the effective and efficient use of arbitration in the context of individual administrative contract disputes based on the lessons learned from arbitration in the United States.