Aspects of E-commercial Arbitration in Saudi Arabia

Abstract

Abstract With the advent of e-commerce, a significant proportion of formerly physical entities has virtually disappeared into cyberspace, conducting their operations within no conventional jurisdiction whatsoever. E-commerce has demanded the application of ICT in arbitration, leading to innovation from the traditional arbitration procedures such as the authenticity of agreements and signatures and the enforceability of awards. E-commerce happens in a virtual world, an interesting phenomenon that has strongly highlighted the inappropriateness of conservative legal frameworks in a rapidly evolving world. This research identifies how the KSA's legal framework influences the country's effectiveness, enforceability, and sustainability of e-commerce dispute resolution. In traditional arbitration, the disputing parties' jurisdictional location is absolute. The country can controversially impact its national laws to disapprove arbitral awards determined, thereby contravening its public policy. Saudi Arabia, having a unique legal system compared to the developed world, has historically been adamant about accommodating the autonomy of foreign arbitrary parties and tribunals. Even after accession to the New York Convention, the kingdom was exempted from the recognition and enforcement of arbitral awards not aligned with its public policy. With the current pandemic, the country has been forced to acknowledge the logic behind e-commerce and the critical implications of the arbitration process. This dissertation aims to demonstrate how effective e-commerce dispute resolution through arbitration can be incorporated into the country's e-commerce. A US case study is used to extrapolate features that would be an excellent benchmark for Saudi Arabia's E-arb practice.