Saudi Arabia takes steps to further strengthen arbitration practices

Rena L. Scott and Chun Pin Yap, advisory and disputes experts at Pinsent Masons, were commenting after the Saudi Council of Ministers passed the resolutions intended to strengthen arbitration practices and place the KSA as an important international arbitration hub.

Scott said: “We have witnessed significant growth in arbitration in Saudi Arabia in recent years which correspondingly lead to the maturing and development of the local institutions supporting arbitration – such as the Saudi Center for Commercial Arbitration.”

Amongst the initiatives announced is a review of the Saudi Arbitration Law and its implementing regulations by the National Competitiveness Center, Ministry of Commerce, Ministry of Justice, Ministry of Investment and Saudi Center for Commercial Arbitration.

Additionally, government entities are set to take measures to integrate with the arbitration ecosystem, such as through technical and other means, so that government e-services can be made available to support and enhance the effectiveness of institutional administration of arbitrations.

Selected court judgments relating to arbitrations will be translated and published following the announcement, with a study to be conducted in a bid to assess international perceptions of the KSA’s arbitration processes in terms of the quality of proceedings. Alongside this, universities and research institutions are encouraged to conduct studies on arbitration and to publish their findings.

Arbitral institutions operating in the KSA are also being urged to do more to promote the Kingdom’s arbitration ecosystem, for instance, by holding events to promote arbitration practices, participating in international events, and publishing reports and studies to improve perception of Saudi arbitration.

Additionally, there are calls for more arbitration and alternative dispute resolution (ADR) training programmes to raise public awareness among local legal practitioners.

Scott said: “The latest push is unsurprising considering the amount of effort and investment made by the Kingdom. I anticipate and look forward to further growth and have confidence that it will not be long before Saudi becomes one of the most important international arbitration hubs.”