OUT-LAW ANALYSIS 3 min. read
Reforms will underpin arbitration’s growing popularity in Saudi Arabia
31 Mar 2026, 9:11 am
The number of disputes being resolved by arbitration in the Kingdom of Saudi Arabia (KSA) is on the rise. This is likely to become a trend over the years ahead with planned reforms to the country’s arbitration law set to improve how businesses can resolve their disputes.
KSA’s Vision 2030 strategy includes strengthening its economy and attracting greater foreign investment, both of which require robust dispute resolution capabilities. In recent years, the Kingdom has taken further steps to bolster its position.
Last summer, the Saudi Council of Ministers passed resolutions intended to strengthen arbitration practices and place the KSA as an important international arbitration hub. The resolutions mandated a comprehensive review of the current arbitration law and regulations; publication and translation of arbitration-related court judgments to enhance transparency; integration of government e-services with arbitration platforms; and studies on global perception of Saudi arbitration and promotion of events like Riyadh International Disputes Week.
A consultation on changes to the 2012 Arbitration Law followed, with a focus on modernising the processes for users of arbitration in KSA. At the time of writing, the ‘new’ KSA Arbitration Law has not yet been published and is not in force but the public consultation process for the draft law is complete.
One of the main changes proposed concerns the choice of law for governing arbitration agreements. The planned reforms would make it explicit that the law chosen by the parties applies. In the absence of that choice, the law of the seat of arbitration would govern the arbitration agreement between the relevant parties. This is a critical point as the interpretation of an arbitration agreement sits at the heart of a valid referral to arbitration for dispute resolution purposes.
Another important change would strengthen the rights of parties to enforce arbitral awards in the KSA. The proposal is to expand the definition of ‘award’ to include interim and partial awards, which would make these enforceable like final awards made by arbitral tribunals under the current law.
Plans to remove the requirement for parties to deposit arbitral awards with courts for enforcement also form part of the proposals, as do provisions that would allow arbitral tribunals in the KSA to rule on whether they have jurisdiction to hear cases where that is an issue in dispute. International arbitration matters would be subject to the supervisory jurisdiction of the Commercial Court of Appeal in Riyadh, unless parties agree otherwise.
Strict qualification criteria that arbitrators must meet to be appointed to arbitral tribunals in the KSA would also be relaxed, if the proposals are implemented, in a move that would give parties greater choice over the people they select to hear their cases. Under these plans, arbitrators would need to have full legal capacity and no criminal conviction – currently, they must have a Sharia or law degree. Rules around arbitrator immunity are also earmarked for update: immunity would apply except in cases of fraud or gross error.
The most popular institution for raising arbitration proceedings before in the KSA is the Saudi Center for Commercial Arbitration (SCCA). In its most recent annual report, the SCCA highlighted a 30% increase in new cases filed, and 59% growth in its overall caseload. Those figures were for 2024, with comparisons drawn with 2023 case statistics.
More than a third of the 2024 caseload, 38%, concerned disputes in the construction and engineering industry. A further 18% of cases arose in the context of professional services. The total value of the 73 cases from 2024 was SAR 1.1 billion (US$304 million). Parties from 28 different countries – including China, the US, France, Germany, Spain and the UK – were involved in SCCA arbitrations in 2024. The data shows that, on average, SCCA cases take 166 days from filing to being disposed of, whether via withdrawal, settlement or award.
Administrative and procedural matters relevant to SCCA‑administered arbitrations are determined by the SCCA Court. In October 2025, eight new members of the court, from a range of geographic and cultural backgrounds, were appointed. These new members, the SCCA said, are “a manifestation of the SCCA's international reputation within the ADR community at both local and international level”.
SCCA chief executive Dr. Hamed Merah said the SCCA “is diversifying its international brain trust in response to its growing caseload and the increasing number of nationalities involved in those cases”.
Our research into KSA court rulings on arbitration matters in recent years has identified an overwhelming trend for the Saudi courts to uphold parties’ agreement to resort to arbitration, even when objections or defences are raised by the opposing party. There are a small number of exceptions to this – such as where there are procedural missteps or where Sharia principles are considered to have been violated and arguments of public policy are therefore raised.
The approach of the courts, coupled with the move to modernise and internationalise arbitration law and practice in the KSA, will be welcomed by global businesses at a time when major projects are planned and regulations are being relaxed to encourage foreign investment.
Co-written by Omar Saifan and Melissa McLaren of Pinsent Masons.
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