Enforcement of Foreign Arbitral Awards in The Kingdom of Saudi Arabia

Abstract

Arbitration is as crucial an element for investors as it is important to Saudi Arabia (SA) as a state aiming to attract foreign investment. This paper studies SA’s efforts to improve the legal environment regarding the facilitation of the enforcement of foreign arbitral awards (FAAs). The paper argues that it is less friendly towards the enforcement of such awards. Thus, it also studies the legal framework in SA regarding the related domestic laws, the Saudi Arbitration and Enforcement Laws, as well as the international conventions applied to the enforcement of FAAs, uncovering that there are some obstacles regarding public policy and the requirements of consonant with precedents and the reciprocity principle. The paper concludes that the main problem is regarding their application by judges due to the unwritten Sharia, which is SA’s public policy, and unclear regulations regarding the other two requirements. Therefore, some legal reforms are required, the most important of which is the codification of Sharia due to its large-scale impact.