Alternate Dispute Resolution Law at Saudi Arabia

Saudi Arabia has significantly advanced its legal framework for Alternative Dispute Resolution (ADR), encompassing both arbitration and mediation, to align with international standards and support its Vision 2030 objectives.

⚖️ Legal Framework for ADR

1. Arbitration Law

Saudi Arabia's arbitration landscape is governed by the Saudi Center for Commercial Arbitration (SCCA), established in 2014. The SCCA administers arbitration and mediation proceedings in both Arabic and English, aiming to become the region's preferred ADR provider by 2030. The SCCA's Arbitration Rules, based on the UNCITRAL Arbitration Rules, were revised in 2021 to permit more cost-effective proceedings and an expedited arbitration procedure. The SCCA also introduced Codes of Ethics for arbitrators and mediators and forged partnerships with government and the private sector to promote arbitration .

2. Commercial Courts Law (CCL) and Implementing Regulations

The CCL, enacted in 2020, mandates that certain commercial disputes undergo reconciliation or mediation before proceeding to litigation. This includes disputes among partners in a Mudarabah company, claims between merchants under commercial contracts with a claim value below SAR 1 million, and disputes between spouses or close relatives. The law encourages parties to resort to ADR and makes it mandatory in specific cases .

3. Civil Transactions Law (CTL), 2023

The CTL, effective from June 2023, codifies key principles governing civil transactions and contracts. While it does not replace arbitration, it provides a clearer legal framework for interpreting contracts, potentially reducing disputes and streamlining the arbitration process .

🧑‍⚖️ Mediation Initiatives

Saudi Arabia has taken substantial steps to encourage the adoption of mediation:

Singapore Convention on Mediation: In 2022, Saudi Arabia became a founding signatory of the United Nations Convention on International Settlement Agreements Resulting from Mediation, known as the Singapore Convention. This aims to ensure the enforceability of agreements resulting from mediation .

Draft Mediation Law: In 2023, Saudi Arabia published a draft mediation law that promotes mediation as a form of dispute resolution and requires that mediation proceedings be kept confidential .

Emergency Mediation Program: In response to the COVID-19 pandemic, the SCCA launched the Emergency Mediation Program, allowing parties to convert their mediated settlement agreements into enforceable bonds .

🏛️ ADR Institutions

Saudi Center for Commercial Arbitration (SCCA): Established in 2014, the SCCA is the premier arbitration institution in Saudi Arabia. It has introduced updated arbitration rules in 2023 that align with top international standards and has set up an arbitration court featuring globally recognized practitioners and scholars 

Najiz Portal: The Ministry of Justice's Najiz.sa portal offers over 120 e-services related to the judiciary, enforcement, notarization, mediation, training, and law practice, enhancing access to ADR services 

✅ Summary

Saudi Arabia has established a robust ADR framework characterized by:

Modern Legislation: The Commercial Courts Law and Civil Transactions Law codify and encourage the use of ADR mechanisms.

International Recognition: Saudi Arabia's accession to international treaties like the Singapore Convention and the CISG enhances the enforceability of mediation and arbitration agreements.

Institutional Support: The SCCA and Najiz Portal provide comprehensive ADR services and resources.

Cultural Integration: Mediation is effectively used in various disputes, reflecting the country's commitment to accessible and amicable dispute resolution mechanisms.

 

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