What is The International Arbitration in Saudi Arabia?

International arbitration has become one of the most trusted methods for resolving cross-border commercial disputes, offering businesses an alternative to lengthy and complex court proceedings. In Saudi Arabia, international arbitration plays a vital role in supporting the Kingdom’s rapidly expanding economy by ensuring that commercial disputes are handled transparently, efficiently, and in line with global best practices.

Through a well-defined legal framework—anchored by the Saudi Arbitration Law, its implementing regulations, and the Saudi Center for Commercial Arbitration (SCCA)—Saudi Arabia has positioned itself as a leading hub for fair and modern dispute resolution in the region.

What is International Arbitration​?

International arbitration in Saudi Arabia is considered an alternative method for resolving disputes outside traditional courts. It is based on an agreement between the parties to submit their conflict to an arbitral tribunal instead of litigation. The arbitrators are chosen by mutual consent of the disputing parties to ensure neutrality and expertise.

An arbitration clause can also be included in the original contract before any dispute arises, providing flexibility in determining how future disagreements will be resolved. The arbitral award issued by the tribunal is final and binding on all parties, making commercial arbitration an effective and efficient means of achieving justice in business-related disputes.

Steps and Procedures of International Arbitration in Saudi Arabia – Humanized Version

When resolving disputes through international commercial arbitration in Saudi Arabia, several essential steps must be followed to ensure a lawful and organized process. These steps include:

1. Arbitration Agreement:
    The process begins with a clear arbitration agreement between the parties. This agreement may be included in the commercial contract before any dispute arises or signed afterward once the conflict occurs. As stated in Article 9 of the Saudi Arbitration Law, the arbitration agreement forms the foundation upon which all subsequent proceedings are based.
2. Filing the Request for Arbitration:
    Arbitration officially commences when one party receives a written request for arbitration from the other party unless another method has been agreed upon. According to Article 25 of the Saudi Arbitration Law, this request marks the formal start of the proceedings. Similarly, the International Centre for Settlement of Investment Disputes (ICSID) requires that the party—whether a state or an investor—submit a written request to the Secretary-General, who then notifies the opposing party.
3. Conduct of Arbitration Proceedings:
    Arbitration proceedings are generally conducted in Arabic, unless both parties or the arbitral tribunal agree on another language. This applies to all written statements, submissions, and hearings, as well as to the arbitral award itself, in accordance with Article 29 of the Arbitration Law.
4. Exchange of Memoranda:
    The claimant must submit a written statement of claim within the agreed timeframe, outlining the basis of the dispute and the relief sought. The respondent then files a written defense memorandum, responding to the claimant’s arguments and presenting supporting evidence.
5. Hearing Sessions:
    The arbitral tribunal holds hearings to allow both parties to present their arguments, evidence, and supporting documents. However, if both sides agree, the tribunal may choose to proceed solely based on written submissions without holding oral hearings.
6. Issuance of the Arbitral Award:
    Once the proceedings are complete, the arbitral tribunal issues a written and reasoned final award, signed by all or a majority of the arbitrators. If one or more arbitrators abstain from signing, the reasons must be stated in the award to maintain procedural transparency.

Through these steps, the Saudi arbitration framework ensures that international commercial arbitration is conducted in a transparent, fair, and efficient manner. This approach aligns with international standards and strengthens investor confidence in Saudi Arabia’s business and legal environment.

Read also: The New Saudi Companies Law 2025: The Complete Guide

The Legal Framework Governing International Commercial Arbitration in Saudi Arabia – Humanized Version

The legal framework regulating international arbitration and commercial arbitration in Saudi Arabia is designed to align the Kingdom’s dispute resolution system with global standards while maintaining harmony with its local laws and judicial principles. This system ensures that both domestic and cross-border commercial disputes are resolved efficiently, fairly, and transparently.

Here are the main components that shape this framework:

Check out: The New Companies Law Saudi Arabia Regulations​ in 2025

1. The Saudi Arbitration Law:
    The cornerstone of international commercial arbitration in Saudi Arabia, this law governs all aspects of the arbitration process — from forming arbitration agreements and appointing arbitrators to conducting hearings, issuing awards, and enforcing or annulling those awards. It reflects international best practices, providing a neutral and effective alternative to traditional court litigation.
2. The Implementing Regulations of the Arbitration Law:
    These regulations provide detailed guidance on applying the Arbitration Law. They clarify procedural rules, define the role of the competent appellate court, and ensure greater consistency and precision in handling arbitration cases — whether domestic or international.
3. The Saudi Center for Commercial Arbitration (SCCA):
    The SCCA plays a crucial role in managing and supervising international arbitration and mediation cases in Saudi Arabia. Based in Riyadh, this non-profit institution facilitates the settlement of commercial disputes under the authority of Saudi law, while adhering to the globally recognized UNCITRAL Arbitration Rules.
    The center provides an integrated framework that covers every stage of arbitration — from submitting the arbitration request to issuing and enforcing the final award — ensuring neutrality, efficiency, and legal reliability.

Conclusion

International arbitration in Saudi Arabia represents a progressive, efficient, and impartial system that supports both local and international investors. For companies and investors seeking to navigate arbitration procedures with confidence, Etqan Law Firm offers expert legal guidance and strategic support throughout every stage of the process — from drafting arbitration agreements to enforcing arbitral awards.

Learn about: Saudi Labor Law Resignation Guide 2025 – Etqan Law Firm

The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +96656113776, +966541110440, +966504315333.

Additionally, feel free to visit our branches located at:

• Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
• Riyadh: King Abdulaziz Street, across from the Kingdom Tower
• Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.

FAQ