International Electronic Arbitration Application in E-Commerce in The Kingdom of Saudi Arabia

Abstract

The Kingdom of Saudi Arabia, boasting the largest economy among Gulf nations, has experienced significant economic growth through globalization and foreign investments, particularly in the oil industry. These investments have not only stimulated employment opportunities for Saudi citizens but also fueled government spending on infrastructure and social services. The diversification of the economy beyond oil has attracted numerous investors, transforming Saudi Arabia into a global hub for commercial activities. With the surge in business transactions, the need for a standardized dispute resolution mechanism became apparent. The contentious issue of arbitration in Saudi Arabia underwent substantial legal reforms, aligning with the principles of the New York Convention, of which Saudi Arabia is a signatory. Open support for arbitration as a dispute resolution method resulted in increased international investments and expanded global relations for Saudi Arabia. This led to the establishment of new laws and regulations governing arbitration in the country. Recognizing the anticipated growth in e-commerce and the potential legal disputes arising from it, there is a call for research to understand the challenges and opportunities in electronic arbitration in Saudi Arabia. Despite the positive impact of the 2012 Arbitration Law, debates persist, with some endorsing its benefits and others expressing concerns about practical application. The study aims to bridge gaps between international arbitration law and Saudi Arabian arbitration law by evaluating their differences, ensuring a robust and effective arbitration process for the country's continued economic prosperity. The investigation into electronic arbitration presents a critical aspect, as e-commerce is poised to grow, bringing about an escalation in legal disputes. The study aims to uncover the challenges and opportunities inherent in electronic arbitration, shedding light on this emerging field in the Saudi Arabian context.