Saudi Arabia firmly on the map as key arbitration and dispute resolution hub

Regulatory changes, the growth of arbitration centres and organisations across the KSA, and the Kingdom’s hosting of key international arbitration events are amongst the pivotal elements pushing the improvement of the Kingdom as a popular arbitration landscape.  For instance, Riyadh International Disputes Week is now an annual event and is helping put the Kingdom on the international arbitration map, as is the recent launch of the Saudi Arabia branch of the Chartered Institute of Arbitrators.

More generally, the rise in and scope of Saudi ‘giga projects’ and regulatory and legal reforms under the larger plan of Saudi Vision 2030 buoy the economy and attract foreign investment. This has and will continue to have an impact on the arbitration landscape.

Growth of the SCCA and enforcement trends

The Saudi Center for Commercial Arbitration (SSCA) recently introduced new rules focusing on efficiency, flexibility, and cost-effectiveness. The new rules include provisions for early dismissal of frivolous claims and direct appointment of arbitrators.

Read more of our report on international arbitration in 2025

• International arbitration: regional, sectoral and industry developments reinforce dispute resolution status
• UAE: recent arbitration reforms while legacy DIFC-LCIA clause debate continues
• Saudi Arabia firmly on the map as key arbitration and dispute resolution hub
• New digital services and legal developments boost international arbitration usage in Qatar
• Egypt a ‘central hub’ for arbitration in the MENA region
• Investment disputes continue to drive international arbitration developments in Africa
• Southern African states form harmonised arbitration framework
• UK arbitration developments continue to enhance position as key dispute resolution jurisdiction
• French arbitration law evolves ahead of 2025 reforms
• Germany to become more attractive for international arbitration proceedings
• Singapore continues to rise as an international dispute resolution hub
• Continued improvements in international arbitration driven by new HKIAC rules and case law
• India continues work to modernise arbitration landscape
• Significant developments in Japan’s arbitration landscape
• South Korea strengthens international arbitration framework
• China continues to improve arbitration process efficiency and effectiveness
• Australian court rulings strengthen pro-arbitration stance and expand scope of arbitration
• Construction projects and contracts must consider sanctions risks
• New types of M&A disputes will drive up international arbitration cases
• Growing demand for expertise in cryptocurrency related arbitration in 2025
• Major changes crystallising in investor-state dispute settlement
• What the future holds for mediation in investor-state dispute settlement

Alongside the introduction of the new rules, the SSCA continues to promote alternative dispute resolution methods, including mediation and negotiation, in a bid to streamline dispute resolution. This follows a significant increase in arbitration filings across the Kingdom, particularly in sectors such as banking, capital markets, and construction. This trend is driven by the Kingdom’s efforts to position itself as a leading arbitration hub, particularly through the SSCA with initiatives aimed at enhancing its international profile and attracting more complex commercial disputes.

At the Third Saudi Commercial Arbitration Conference, minister of justice Walid Al Samaani shared that 90% of arbitral awards have been honoured among over 4,000 annulment applications. Out of the 88 annulment applications received in 2022, only five resulted in annulment in part or in full, with none of those annulment decisions being based on violations of sharia law or public policy.

Launch of CIArb’s Saudia Arabia branch

The Chartered Institute of Arbitrators’ (CIArb) launch of its Saudi Arabia branch has significantly increased the availability of arbitration and ADR training courses in the Kingdom. The branch has rapidly grown to over 270 members, reflecting the increasing interest and participation in alternative dispute resolution among Saudi professionals.

Additionally, the CIArb and the SSCA are demonstrating a collaborative approach, working together on various initiatives. These include seminars, panel discussions, and mock arbitration sessions in order to help enhance the skills and knowledge of alternative dispute resolution practitioners in Saudi Arabia.

Updated investment law

The new investment law (43 pages / 4.4 MB) guarantees equal treatment for local and foreign investors, replacing the previous licensing requirements with a simplified registration process. The update also emphasises protection from expropriation without fair compensation, fair and equitable treatment, and the freedom to transfer funds inside and outside the Kingdom.

Additionally, the new investment law provides for updated dispute resolution mechanisms – arbitration, mediation and reconciliation. This operates alongside recourse to competent courts.

Special Economic Zones are also included, with the new investment law potentially offering unique dispute resolution frameworks and incentives for foreign investors. The new investment law also includes further incentives to investors based on objective and fair eligibility criteria, supporting the KSA Vision 2030 by giving greater flexibility to various ministries and public bodies.

In line with other modern investment regimes, the update further sets out to ensure that investment cannot be confiscated except pursuant to a final judicial ruling and provides protection against direct and indirect expropriation, ensuring fair compensation.

Additional developments 

Further developments that will impact arbitration across the Kingdom in 2025 and beyond include the introduction of the Civil Transactions Law. First introduced in 2024, the law has had a huge impact on arbitration practices, aligning them more closely with international standards and enhancing the legal framework for dispute resolution by adding certainty and consistency to business dealings.

Finally, despite recent challenges, Saudi Arabia continues to target significant foreign direct investment inflows, which could impact the arbitration landscape as more international businesses engage with the Kingdom.