The arbitration landscape has seen an optimistic change since 2012 after the new Enforcement Law and new Arbitration Law got introduced. In 2016, the SCCA [Saudi Center for Commercial Arbitration] was launched in Riyadh.
The Implementation Rules provided a clarified version of the new Arbitration Law. It is inspired by the UNCITRAL model and consists of arbitration-friendly concepts. It offers the freedom to the arbitral procedure and allows the clear implementation of arbitration agreements.
In the legal environment, it is crucial to have the support of the best lawyers in Saudi Arabia. Experienced lawyers from ERLF offer litigation and arbitration services to national and international clients. They are experienced and skilled to represent their foreign and regional clients in Middle-East court. The lawyers even represent companies in different sectors like real estate, healthcare, IT, etc.
Highlights of New Implementation Rules
- According to the arbitration law, the claimants need to submit a request for starting the arbitration process. The implementing rules clear the minimum details, which is needed to go in the request.
- The Court of Appeal appoints the chairperson or sole arbitrator if there is a disagreement between nominees or parties. Even a wing arbitrator is appointed for representing those who are unable to participate in the process or cannot select its arbitrator. As per the Implementing Rules, an application for arbitrator needs to include a request copy of the arbitration and arbitration agreement.
- In the Arbitration Law, the tribunal can conduct the proceedings according to the way he/she considers appropriate if the parties disagree on a procedure. On the other hand, in the Implementation Rule, there are changes that the tribunal needs to give involved parties a minimum of ten days’ notice defining the procedure it will adhere to.
- In Arbitration Law the procedure challenges the arbitrator, whereas in Implementing Rules when a challenge is made to the arbitrator, the challenged arbitrator can resign without any justification. Besides, his/her resignation will not be counted as admittance based on a challenge.
- The tribunal can appoint more than one expert to report a particular problem. However, the Implementing Rule needs to instruct the expert about their mission as well as determine their fees.
- In Arbitration Law, there was no provision for third party joining in the arbitration but was vaguely understood. The Implementing Rule clarifies that the tribunal has the right to allow a 3rd party to join if the third person and the existing parties mutually agree.
- The tribunal can end arbitration if the claimant failed to describe or withdrew its claims. The Implementing Rule defines that in such circumstances the arbitration contract stays valid and involved parties are bound to it.
- Arbitration Laws limit the variables on which awards get annulled and time limits within annulment requests can be made. In the Implementing Rules, the document list that needs to be attached to the annulment request is mentioned. It also clarifies that the parties who waived their rights have lost their eligibility to submit the annulment request.
The Implementing Rule even clarifies the Courts of Appeal and Supreme Court roles, which were opaque in the new Arbitration Law. For arbitration in Saudi Arabia, a legal representative from ERLF ensures that the process is handled with vigilance and professionalism.