Out-Law News 1 min. read
Saudi Arabia launches consultation over arbitration revamp
KSA arbitration law will align with international best practice. Photo: Justin Setterfield/Getty
21 Oct 2025, 9:56 am
Proposed changes to Saudi Arabia’s arbitration law will bring the country into closer alignment with best practice internationally, an expert has said.
Consultations are now underway over changes to the 2012 Arbitration Law, with a focus on modernising the processes for users of arbitration in KSA.
The move comes after discussions during the summer about how to advance the country’s arbitration approach.
Among the changes are an express rule that the law applicable to the arbitration agreement is that which is expressly chosen by the parties or, in the absence of express agreement, the law of the seat. This changes the existing law, which provides that in the absence of agreement, the arbitral tribunal is permitted to adopt the procedure it deems appropriate for determining the law of the arbitration.
The previous requirement for arbitrators to hold a degree in Sharia law has been removed. This change may permit parties to appoint arbitrators without a legal background.
Additionally, the draft includes for parties to be jointly liable for costs, with arbitrators able to withhold awards over unpaid fees.
The draft changes to the 2012 Arbitration Law, which is open for consultation until October 25, would also introduce a maximum period of 60 days for annulments to be suspended, allowing a tribunal to fix the form of the award.
Rena Scott, a disputes expert with Pinsent Masons in Riyadh, said the proposed changes would have a significant impact on how KSA aligns with global arbitration standards.
“The new draft Saudi arbitration law is largely in line with international best practice for modern arbitration laws and its aim seems to be to promote efficient and flexible arbitrations while offering enhanced procedural safeguards,” she added.
Contact an adviser
