ENFORCEMENT OF ARBITRAL AWARDS AND PUBLIC POLICY EXCEPTIONS UNDER TODAY’S ARBITRATION LAW IN SAUDI ARABIA

Abstract

Arbitration in Saudi Arabia has changed significantly in recent years and is now on the rise. In earlier years, including under the 1983 Saudi arbitration statute, the Saudi courts had heavy oversight over arbitrations, and arbitration was rarely the forum of choice for dispute resolution. But several recent developments have significantly increased the growth of arbitration in Saudi Arabia, including a new arbitration law, new enforcement laws, increased support from the judiciary, and the new Saudi Center for Commercial Arbitration (SCCA). The new Saudi arbitration law, adopted in 2012, was designed in part to address issues with Sharia law. In addition, a revised enforcement law came into effect in March 2013 to greatly modernized the arbitration process in Saudi Arabia. The new SCCA provided visible government and business support for arbitration and portends even greater domestic and international growth of using arbitration. However, many obstacles and challenges remain for arbitration in Saudi Arabia. In these pages, I will review the political and legal system in Saudi Arabia, and the role of Sharia law; the development of arbitration in Saudi, including the advantages of the new arbitration law; and the obstacles related to the enforcement of arbitration in Saudi Arabia with its reasons. In the end, I share my conclusions and recommendations.