SAUDI ARABIA Law and Practice Contributed by: Zeyad Khoshaim, Abdullah Alajlan and Kamil Mehiz, Khoshaim & Associates
• The award must be made by majority vote if the tribunal consists of multiple arbitrators. Delibera - tions must be held in privately. • If a majority decision is unattainable, the tribunal has 15 days to appoint a casting arbitrator. Failing that, the competent court will appoint one. • Procedural decisions can be issued by the presid - ing arbitrator if both parties or all tribunal members authorise this in writing, unless agreed otherwise. • If the tribunal is authorised to settle the dispute amicably, the settlement award must be unani - mous. • The tribunal may issue provisional or partial awards before the final award, unless the parties agree otherwise. Article 42 of the Saudi Arbitration Law provides further requirements. • The award must be in writing and signed by the majority of arbitrators. If any arbitrator refuses to sign, their reasons must be indicated. • The award must include the reasoning leading to the decision. • The award must include the names and addresses of the parties, the names, addresses, nationali - ties, fees and titles of the arbitrators, a copy of the arbitration agreement, a summary of the parties’ requests, submissions and documents, the dis - positive part of the award, the date and place of issuance. Article 40 addresses the time limits for delivering an arbitral award. • The tribunal must render the final award within the period agreed upon by both parties. In the absence of such an agreement, the award must be issued within 12 months from the commencement of arbi - tration proceedings. • The tribunal may extend this period by up to six months unless the parties agree to a longer exten - sion. • If the award is not issued within the stipulated peri - od, either party can request the competent court to specify an additional period or terminate the arbitration proceedings. In such cases, either party may then file a case with the competent court.
• If a new arbitrator is appointed, the period for the award extends by an additional 30 days. Article 43 and Article 44 of the Saudi Arbitration Law outline the procedural requirements for handling and submitting the arbitration award. • Article 43 (1) specifies that the arbitration tribunal must provide each party with a true copy of the arbitration award within 15 days from its issuance. • Article 44 requires the tribunal to deposit the original award, or a signed copy of it, in its origi - nal language with the competent court within the same timeframe set in Article 43. If the award is in a foreign language, it must be accompanied by an Arabic translation certified by an accredited translator. These provisions ensure that arbitral awards in Saudi Arabia adhere to clear guidelines and are delivered within a specified timeframe, providing a structured Arbitral tribunals in Saudi Arabia have broad authority to grant various types of remedies, including declara - tory relief, specific performance, and monetary com - pensation for actual damages proven and suffered. However, there are no specific limits on these rem - edies except those related to Shari’ah and public policy. Arbitral tribunals cannot issue punitive damages, nor can they award interest, as these are strictly prohib - ited under Shari’ah. 10.3 Recovering Interest and Legal Costs Interest is strictly prohibited under Shari’ah law, so parties cannot recover interest through arbitration pro - ceedings. If an arbitral tribunal awards interest, the Saudi courts may annul the award, either wholly or partially (depending on how the award is drafted). Typically, costs are allocated based on the outcome of the case (ie, they follow the event), unless the parties agree otherwise. The arbitral tribunal may also order the losing party to compensate the winning party for incurred attorneys’ fees. process for dispute resolution. 10.2 Types of Remedies
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