SAUDI ARABIA Law and Practice Contributed by: Zeyad Khoshaim, Abdullah Alajlan, Kamil Mehiz and Sarah Sedky, K&A
Khoshaim & Associates 17th Floor, Tower B
Olaya Tower Olaya District Riyadh 11321 Saudi Arabia Tel: +966 11 461 8700 Email: bd@khoshaim.com Web: www.khoshaim.com
1. General 1.1 Prevalence of Arbitration
• time sensitivity – both industries are highly time- sensitive, prompting parties to seek expedited dis - pute resolution compared to traditional methods; • industry expertise – specialised knowledge is highly valued, and arbitration allows parties to select arbitrators with specific expertise relevant to their disputes; and • confidentiality – sensitive projects benefit from arbitration’s higher confidentiality, as proceedings and awards are generally private, unlike court judg - ments, which are publicly published. Additionally, with Saudi Arabia’s Vision 2030 (aimed at diversifying the Saudi economy and fostering growth in various sectors), there has been a corresponding rise in disputes within these evolving industries. This shift highlights the growing importance of arbitration as a preferred method of resolving conflicts in these rapidly developing fields. 1.3 Arbitration Institutions The SCCA is the premier arbitration institution in Saudi Arabia. Since its establishment in 2014, it has made significant strides, including the introduction of updated arbitration rules in 2023 that align with top international standards. It has also set up an arbitra - tion court featuring globally recognised practitioners and scholars, and opened an office in Dubai to boost regional presence and accessibility. The SCCA is now the preferred centre for resolving disputes involving state-owned entities and governmental bodies. Additionally, the SCCA has played an active role in promoting arbitration within Saudi Arabia, notably
Arbitration is a recognised method for resolving dis - putes in Saudi Arabia, though courts remain the pri - mary venue if settlement efforts fail. Recent govern - ment initiatives are aimed at promoting arbitration among domestic and governmental entities. Notably, on 19 January 2019 the President of the Council of Ministers issued High Order No 28004, marking a policy shift that encourages ministries, government authorities and state-owned companies to resolve disputes with foreign investors through arbi - tration. This directive mandates that arbitration occur within Saudi Arabia and highlights the Saudi Center for Commercial Arbitration (SCCA) as the preferred option. Additionally, it allows for arbitration under other licensed centres in Saudi Arabia. The SCCA’s 2025 caseload demonstrates growing market confidence in arbitration. In 2025, the SCCA registered 182 new arbitration cases, a 63% increase from 2024, reinforcing arbitration’s position as an increasingly trusted and established mechanism for resolving commercial disputes in the Kingdom. 1.2 Key Industries In recent years, arbitration activity has notably increased in the construction and sports industries. This surge can be attributed to several factors:
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