Arbitration in Saudi Arabia: law, SCCA, costs and enforcement

The short version

• Arbitration in Saudi Arabia (KSA) runs under the Law of Arbitration, Royal Decree No. M/34, issued on 16 April 2012, modelled on the Model Law of the United Nations Commission on International Trade Law (UNCITRAL) and amended by Royal Decree No. M/21 on 21 July 2025.
• The main institution is the Saudi Center for Commercial Arbitration (SCCA), whose Arbitration Rules, second edition, have applied since 1 May 2023. It also runs the 2026 Mediation Rules and Small Claims Procedures from 1 August 2026, and a revised fee schedule takes effect on 1 November 2026.
• Unless the parties agree otherwise, the award is due within 12 months of the start, extendable by up to six months (Article 40). Under the SCCA’s expedited track, where SAR 4 million or less is in dispute, a sole arbitrator’s award is due within 30 days of the close of proceedings or 180 days of appointment.
• An award cannot be appealed on its merits. It can only be nullified on the closed Article 50 grounds, within 60 days, and the court must annul it on its own initiative if it breaches Sharia or public order.
• Saudi Arabia acceded to the New York Convention on 19 April 1994 with a reciprocity reservation. A domestic award has the authority of a judicial ruling and enforces through the enforcement courts, subject to a Sharia and public-order check under which a divisible offending part can be severed.
• A draft new Arbitration Law is in public consultation, which we could not open, so the 2012 Law as amended in 2025 still governs. There is no arbitration-specific AI rule; the SCCA frames AI as digitalisation, such as issuing awards electronically.^{1,2,6,8,9,14,16,17,18}

What law governs arbitration in Saudi Arabia?

One statute governs arbitration in Saudi Arabia. The Law of Arbitration, Royal Decree No. M/34, was issued on 16 April 2012 and came into force 30 days after publication (Articles 57, 58). It is based on the UNCITRAL Model Law, UNCITRAL’s 1985 template for national arbitration laws, amended in 2006, and UNCITRAL lists Saudi Arabia from 2012. It applies to any arbitration seated in the Kingdom, and to an international commercial arbitration abroad where the parties choose it, subject to Sharia and treaties. It does not reach family disputes or matters not open to reconciliation (Articles 2, 3).^1,18

The 2025 amendment, Royal Decree No. M/21 of 21 July 2025, deleted Article 10(1). The former Article 24(1) and Article 7 of the Implementing Regulations had been removed earlier, as the reforms section below sets out, and this is separate from the draft new law. The 2017 Implementing Regulations still fill in detail such as the competent court and electronic notice (Articles 2, 3).^1,2,3

On the law that decides the dispute, the tribunal applies the rules the parties chose, or absent a choice the most closely connected law (Article 38). It may decide on equity only if expressly authorised, and then unanimously (Articles 38(2), 39(4)). Much of the domestic substantive law now sits in the Civil Transactions Law of 2023 (Royal Decree No. M/191). For other seats, see arbitration in the UAE, arbitration in London and arbitration in India.^1,5

Why do parties choose Saudi Arabia as a seat?

Parties choose Saudi Arabia for its broad party autonomy, with two defaults a foreign party should plan for. They may adopt the rules of any institution inside or outside the Kingdom, so long as these do not conflict with Sharia (Article 25), so ad hoc arbitration run without an institution is allowed. The default language is Arabic unless the tribunal or the parties agree on another (Article 29).¹

The caseload figures are the SCCA’s own, so we attribute them. It reports 182 cases registered in 2025, of which 119, or 65%, were arbitrations, with the amount in dispute exceeding USD 1.07 billion. It gives its year-on-year growth as 52% on one page and 63% on another, so we give the range, and more than 200 cases in the first half of 2026.^10,11

The SCCA’s description of itself as a growing international seat is not an independent ranking, and we have no verified survey figure for Saudi Arabia. Parties with a Saudi nexus sometimes seat instead in the Dubai International Financial Centre (DIFC) or the Abu Dhabi Global Market (ADGM), or use the Dubai International Arbitration Centre (DIAC); that comparison sits in arbitration in the UAE.¹⁰

Which institutions run arbitrations in Saudi Arabia, and under what rules?

The SCCA was established by Council of Ministers Decree No. 257 of 15 April 2014, under the Council of Saudi Chambers, with its headquarters in Riyadh. It administers commercial and civil disputes submitted to it. Its remit excludes administrative, personal-status and criminal matters, and cases where conciliation is not permitted.⁷

Under the 2023 Rules the SCCA administers, while a separate body whose decisions are final (Article 3), the SCCA Court performs the key determinations the Rules assign to it: appointing and replacing arbitrators, deciding challenges, fixing fees, ordering consolidation and reviewing the draft award. The default is one arbitrator unless the SCCA Court decides on three (Article 15), and it makes the initial determination of the place of arbitration if the parties do not, subject to the tribunal’s final determination (Article 22(1)). The SCCA also runs mediation under the 2026 Mediation Rules and a Small Claims track under the amended Appendix IV, both from 1 August 2026; see AI in mediation.^6,8,10

What should the arbitration clause say, and what can be arbitrated?

The arbitration agreement must be in writing or it is void, and writing includes electronic communications and a reference incorporating a clause from another document (Article 9). The clause is separable, so the contract’s invalidity does not by itself end it (Article 21), and the tribunal rules on its own jurisdiction (Article 20). If a party sues on a covered matter, the court must dismiss the case where the defendant raises the agreement before any other defence (Article 11).¹

Two limits shape what can be arbitrated. A government body may not agree to arbitrate except with the approval of the Prime Minister (the President of the Council of Ministers), unless a special law allows it (Article 10(2)); the former Article 10(1) was deleted in 2025. Family and personal-status matters, and anything not open to reconciliation, cannot be arbitrated (Article 2), and everything remains subject to Sharia and public order.^1,2

For drafting, set the language, the seat and the rules, or Arabic and Saudi defaults apply. The SCCA publishes model clauses for arbitration and for mediation-then-arbitration. Because the Sharia and public-order check applies at enforcement, write any interest or late-payment term with that check in mind. Interest can raise the question of riba, the charging of interest that Sharia forbids.^1,6

Three questions recur. The statute sets no religion or nationality requirement for arbitrators, so an arbitrator need not be Muslim: Article 14 asks only for full legal capacity, good conduct and a university degree in Sharia or law, and on a panel only the chairman needs that degree. The arbitration can be in a language other than Arabic if the tribunal or parties agree (Article 29). A party may be represented by anyone it chooses, including foreign legal practitioners wherever licensed, unless the applicable law requires otherwise (SCCA Rules, Article 9).^1,6

How does an SCCA arbitration work, step by step?

An SCCA arbitration runs from a Request for Arbitration to the final award the SCCA Court reviews. The clock below gives the appointment, disclosure-challenge and other deadlines (Articles 15 to 17). The tribunal must have an odd number of arbitrators or the arbitration is void (Article 13), and each arbitrator owes a continuing duty to disclose anything that casts justifiable doubt on independence (Article 16).^1,6

A tribunal of more than one decides by majority and can issue provisional and partial awards (Article 39). The award must be written, reasoned and signed (Article 42) and deposited with the competent court, with an attested Arabic translation if in a foreign language (Article 44). Under the SCCA Rules, a Request for Arbitration starts the case (Article 5), the respondent answers within 30 days (Article 6), and before the award issues the tribunal sends a draft to the SCCA Court for review of its form (Article 36). Each party must also promptly disclose to the SCCA, the other parties and the arbitrators any non-party with an economic interest in the outcome, including any third-party funder (Article 17(6)).^1,6

How long does arbitration in Saudi Arabia take, and what does it cost?

Absent agreement, the award is due within 12 months of the start, extendable by up to six months and longer by agreement. If it is late, a party can ask the court to extend time or terminate (Article 40). In its 2024 review the SCCA reported an average resolution time of under six months, its own figure.^1,13

On cost, a Request must come with a SAR 5,000 registration fee, non-refundable and credited to the claimant’s administrative share (Appendix I, Article 1). The administrative fee and each arbitrator’s fee are ad valorem, set by the SCCA Court from the Fee Schedule by the amount in dispute, each side paying half unless directed otherwise (Appendix I, Articles 2 to 4). We give no worked fee example: a revised schedule takes effect on 1 November 2026 and we have not opened the current figures.^6,9

What role do Saudi courts play during an arbitration?

The competent court is the court of appeal that would otherwise have heard the dispute. For an international commercial arbitration, whether seated in the Kingdom or abroad, it is the Riyadh court of appeal, unless the parties agree another Kingdom court of appeal (Article 8; Regulations, Article 2).^1,3

During the case the court supports it. It can order provisional or precautionary measures and, at the tribunal’s request, issue a judicial delegation (Article 22(1), (2)). The tribunal itself may seek the competent agency’s help to call a witness or an expert or to obtain a document (Article 22(3)), or, if the parties agree, order interim measures (Article 23). An appeal against a decision nullifying an award is heard by the Supreme Court, which is also the authority named in Article 55(3) (Regulations, Article 17). Enforcement runs through the enforcement courts under the Enforcement Law (Articles 8, 9).^1,3,4

Saudi Arabia has no official public database of arbitration-related court judgments. This guide therefore cites no court decisions and asserts no case outcomes, and carries no table of leading judgments.

Can you appeal or set aside an arbitral award in Saudi Arabia?

There is no appeal on the merits. The only recourse is an action to nullify the award, known elsewhere as an application to set aside (Article 49). The grounds are a closed list in Article 50(1): no valid or still-binding arbitration agreement, a party lacking legal capacity, a party unable to present its defence, the award excluding rules the parties agreed to apply, a defect in the composition of the tribunal or the appointment of arbitrators, an award on matters outside the agreement, or a failure to observe the conditions required for the award. On its own initiative the court must also nullify an award that breaches Sharia or public order, or decides a matter not open to arbitration, and it does so without reviewing the merits (Article 50(2), (4)).¹

The time limit is 60 days from notification of the award, and a pre-award waiver of the right does not bar the action (Article 51(1)). A decision nullifying an award can be appealed within 30 days, but one approving and enforcing it cannot (Article 51(2)). Filing a nullification action does not stay execution. The court may stay it on sound grounds, and if it does it must decide the nullification within 180 days (Article 54).¹

Two severance rules matter. At nullification, if the award decides matters outside the agreement, only that separable part is set aside (Article 50(1)(f)). At enforcement, if the award is divisible, the court can order execution of the part free of the Sharia or public-order violation (Article 55(2)(b)). So a term that offends Sharia or public order, such as an interest or penalty term, need not sink the rest. Where AI drafting meets set-aside, see AI and setting aside arbitral awards.¹

How are arbitral awards enforced in and from Saudi Arabia?

A domestic award has the authority of a judicial ruling and is enforceable (Article 52). The petition needs the award, the arbitration agreement, an attested Arabic translation if the award is foreign-language, and proof of deposit (Article 53), and is not admitted until the nullification window elapses (Article 55(1)). The order issues only after the court verifies that the award does not conflict with a Kingdom judgment, does not violate Sharia or public order, and was properly notified. A divisible non-offending part may still be enforced (Article 55(2)).¹

Foreign awards come in through the Enforcement Law, Royal Decree No. M/53 of 2012, whose enforceable instruments include arbitral awards and foreign judgments and awards (Article 9). A foreign award is enforced only “without prejudice to treaties” and “on the basis of reciprocity”, subject to five conditions, including no conflict with public order (Articles 11, 12). So the Convention operates alongside the Enforcement Law for awards made in another contracting state, and public order is the main local limit. Enforcement is filed through the enforcement courts and the Najiz portal.^4,14

Saudi Arabia acceded to the New York Convention on 19 April 1994, in force 18 July 1994, and applies it only to awards made in another contracting state, a limit known as the reciprocity reservation. A Saudi award is enforced abroad under the New York Convention, the 1958 treaty on recognising and enforcing foreign arbitral awards, which has 172 parties; see New York Convention grounds. Enforcing a Saudi award into India is covered in arbitration in India, and the cross-border AI angle in AI and award enforcement.¹⁷

What changed recently, and what is pending?

Several changes are verified and in force. Royal Decree No. M/21 of 21 July 2025 deleted Article 10(1) of the Law. The former Article 24(1) had been deleted earlier, by an amendment the Ministry of Justice portal records as a Royal Decree No. M/21 dated 26 August 2021, and Article 7 of the Implementing Regulations was repealed by Council of Ministers Decision No. 249 of 1 November 2022. The Civil Transactions Law of 2023 (Royal Decree No. M/191) codified much of the Kingdom’s civil and contract law. In 2026 the SCCA brought in its Mediation Rules and new Small Claims Procedures, replacing the earlier Online Dispute Resolution rules in Appendix IV from 1 August 2026, with a revised fee schedule from 1 November 2026.^1,2,3,5,8,9

One change is pending and we could not verify its content. A draft new Arbitration Law, and draft licensing rules for Saudi arbitration centres, are on the National Competitiveness Center’s Istitlaa consultation platform. The server presented an expired security certificate on 30 October 2026, so we state only that a draft is in consultation. Check the Bureau of Experts laws portal and the Umm Al-Qura gazette before acting.¹⁶

What does Saudi Arabia say about AI in arbitration?

There is no arbitration-specific AI rule or guideline in Saudi Arabia. The SCCA had published none as of 30 October 2026, and we found no judiciary statement. The cross-sector baseline is the AI Ethics Principles, version 1.0, published by the Saudi Data and Artificial Intelligence Authority (SDAIA) in September 2023. They set out seven principles for adopting entities: fairness; privacy and security; humanity; social and environmental benefits; reliability and safety; transparency and explainability; and accountability and responsibility. They are a principles-and-controls framework, not a statute, and do not mention arbitration or the courts.¹⁵

The SCCA’s own posture is digitalisation rather than AI. At the UNCITRAL Working Group II colloquium in Vienna it noted that the 2023 Rules promote technology in case management (Article 25) and allow awards to be issued electronically if the parties agree (Article 36), and the Ministry of Justice’s Najiz platform carries the electronic deposit and annulment and enforcement filings. For AI in arbitration generally, see AI in arbitration, the AI rules tracker and the ICC and SIAC explainers.^6,14

What is still open in Saudi arbitration?

• Whether and when the draft new Arbitration Law and the draft arbitration-centre licensing rules are enacted, and what they change. We could not open the draft, so we make no claim about its content.
• The exact revised SCCA fee figures from 1 November 2026, which should be read from the current schedule and calculator before any number is quoted.
• Whether the SCCA or the judiciary will issue arbitration-specific AI guidance; for now only the cross-sector SDAIA principles apply.
• How a Saudi court would treat an award drafted with heavy AI help. We found no primary case, and there is no public judgment database to check.
• Items reported but not verified, which we leave out: a separate new Enforcement Law, the government-procurement approval route, and the Kingdom’s status under the ICSID and Riyadh conventions.^1,9,15,16