Modernisation of Commercial Arbitration within the Kingdom
Saudi Arabia has modernized its commercial arbitration rules, emphasizing technology use and enabling remote hearings. The Saudi Center for Commercial Arbitration (SCCA) released the updated rules, which are expected to see increased adoption in sectors like construction. The SCCA’s recent expansions, including an office in Dubai’s International Financial Centre, highlight the region’s growing focus on arbitration.
Effective from 1 May 2023, the changes introduce an SCCA court to oversee key administrative decisions in arbitral proceedings and tribunal appointments. This court will include 15 experts, ranging from legal professionals to academics.
The updated rules promote technology in case management, allowing electronic documents and signatures. Disputes valued under SAR 200,000 (USD$53,000) can be handled online, aiming to reduce environmental impact and delays.
Arbitral tribunals now have broader discretion, including determining hearing formats and dismissing changes in party representation. They can also suggest mediation and set limits on written submissions. The SCCA can now also replace underperforming arbitrators.
The rules now encompass provisions for multi-party arbitrations, third-party funding, and emphasize cybersecurity and data protection.
