The Saudi regulator regulates the means of judicial resolution of disputes or disputes. Arbitration is one such means. Individuals are allowed to resort to arbitration to resolve their disputes. This route is considered an independent course of justice and does not fall within the pyramid or judicial organization of the State’s judiciary.
The concept of arbitration: a form of dispute settlement, is a means of resolving disputes outside judicial courts. The dispute is decided by one or more persons that are issued. The award is legally binding on both parties and enforceable in the courts, unless all parties provide that the arbitration process and the award are not binding.
The arbitration agreement is an agreement between two or more parties to refer to arbitration all or some specific disputes that have arisen or may arise between them in respect of a specific statutory relationship, whether contractual or not, whether the arbitration agreement is in the form of an arbitration clause contained in a contract, or in the form of an independent arbitration association.
The arbitrator or panel of arbitrators, which adjudicates the dispute referred to the arbitral tribunal, shall be called the arbitral tribunal, and the arbitral tribunal shall consist of one or more arbitrators, the number of which shall be individual, otherwise the arbitration shall be null and void, and the tribunal shall consider the dispute as it is before the tribunal.
This differentiates the judiciary from arbitration. Arbitration requires the parties’ consent contrary to the judiciary.
The Saudi arbitration system is an adaptation of the system approved by UNCITRAL. This model system was formulated by the United Nations to serve as a model guide for countries in the world on arbitration laws. The Kingdom applied the law with several amendments. This gave Saudi arbitration strength because it is similar to a great thanks of international arbitration systems, and this is its advantage to the system.
The modernization of the system came in 1433 A.H., and it did more when the arbitration judgement was regarded as an executive basis. The idea of arbitration was widespread and applied even in small companies and minor disputes, and gave flexibility in not requiring its commencement from the court as in the old system.
The Court’s case shall not be brought unless there is disagreement between the parties about the proceedings, the duration of the arbitration, the claim of invalidity and so forth.
What is the advantage of arbitration?
Arbitration of the judiciary is characterized by the speedy resolution of the dispute, the confidentiality of the proceedings between the parties to the dispute and the arbitral tribunal, the parties’ control of the proceedings, as well as the freedom of the parties to choose the persons to adjudicate the dispute.
Highlights of cases in which arbitration takes place:
The most frequent cases in which arbitration takes place are contractors’ disputes, construction contracts and, most often, the arbitration clause.
The first article to speak of arbitral proceedings is article XXVI of the Arbitration System, which stipulates:
Arbitral proceedings shall commence on the day when one of the parties to the arbitration receives the request for arbitration from the other party, unless otherwise agreed by the parties to the arbitration.
The new arbitration regime empowered the parties to agree on the arbitral tribunal’s actions and their right to subject arbitral proceedings to the rules in force in any organization, body or arbitration centre in or outside the Kingdom of Arabia In the absence of such an agreement, the arbitral tribunal may take such action as it deems appropriate, provided that the Islamic sharia is not violated.
The new system also has a more flexible and valid reporting system than the old system, making the means of reporting many; These include agreement between the litigants on the reporting mechanism in person, on behalf of one of them or on its specific address.
One of the advantages of this new system is that it has given the parties the freedom to choose the appropriate place for them to arbitrate either inside or outside the Kingdom. In the absence of an agreement between the parties on the place, the arbitral tribunal may designate the place of arbitration taking into account the circumstances of the proceedings and the appropriate location of the parties’ choice.
The new arbitration system has also given the parties and the arbitral tribunal the possibility to agree on arbitral proceedings in any language of their choice. The original is that the arbitration and all its proceedings should take place in Arabic, but the regulator has given the parties the freedom to choose the language.
With regard to the issuance of the arbitral award, the situation in the new system did not differ significantly from that of article 41 of the old system, which provided for “The award shall be made on the basis of a majority of the views of the members. The decision shall be pronounced by the Chairman of the Arbitral Tribunal at the specified hearing. The award shall be edited including the names of the members of the Tribunal that issued it, the date and place of its issuance, the statements of the arbitrators, the defences, the text of the award and any other statements that are necessary for the award to be covered.”
In the new arbitration system, the arbitrator indicated that in the event of a complexity of views and inability to reach the majority in the award, the arbitral tribunal would have to choose a likely arbitrator within fifteen days from the date of the failure to reach the majority required for the award, and in the event that the arbitral tribunal did not appoint the likely arbitrator, the competent body would have jurisdiction to consider the dispute at all.
Article XLIII of the Rules also added that the award should include the determination of arbitrators’ fees, arbitration expenses and how they are distributed between the parties. The arbitration system introduced article two” Unless otherwise agreed by the arbitral parties, the arbitral tribunal may issue interim judgements or a part of the applications, before the final judgement is issued.”
The new system indicated in the text of article 41 in the second paragraph: “The arbitral proceedings shall not end with the death or disqualification of one of the parties to the arbitration unless those who have a standing in the dispute with the other party agree to terminate it”.
In both new and old regimes, the regulator gave the arbitrators the right to request correction of the award or to request interpretation of the award.
As for the authority to eliminate arbitration:
The judiciary is supportive and supportive of arbitration. Article 49 of the Rules states that “arbitration judgements rendered in accordance with the provisions of this Regulations shall not be accepted by any recourse, except for the filing of a claim for nullity of the arbitral award in accordance with the provisions set forth in this Rules.”
This means that the relationship between the judiciary and the arbitral process is regulated in such a way as to ensure the arbitral process in accordance with the considerations of the Islamic sharia and the provisions of the arbitration system that made the arbitration agreement the general sharia for the arbitral liability may not be infringed, otherwise resulting in such invalidity in the judge’s view.
A Real Estate Arbitration Centre and licences were established by the Commission for the Licensing of Arbitration Centres under the umbrella of the Real Estate Authority to consider issues arising from the lease programmes and the landlords’ association.
Link to the Center’s web page:
There is a sports arbitration centre:
To resolve sports disputes is completely different from real estate arbitration.
Link to the Center’s web page:
The implementing regulations of the system were published in 1440 A.H.
https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/12752a60-2a4a-4cab-a05d-a9a700f274a5/1
At Abdul Ellah Al Humaidi , we also provide Arbitration Service
by communicating :
Number: 0504328584 Or e-mail: Info@lah.sa