Saudi Arabia
Abdulla Al TamimiPartner,Head of Litigation - Saudi Arabiaa.tamimi@tamimi.com
Francis PatalongSenior Counsel,Corporate Commercialf.patalong@tamimi.com
Is there any legislation governing mediation in Saudi Arabia? If the response is negative, are there any preparatory legislative project relating to mediation?In KSA, there is no law expressly related to mediation. However, there are some laws or rules that include mediation as part of their disputes process. The Commercial Courts Law (the “CCL”) and its Implementing Regulations encourage the parties to explore alternatives such as reconciliation and mediation before resorting to the Commercial Courts, and in some instances, make mediation a prerequisite to being able to bring an action.
The Ministry of Justice (“MoJ”) announced on February 5, 2023, that it has developed a draft Mediation Law (the “Draft Law”) which was published for consultation in February 2023 for a period of one month. The Draft Law lays out a framework for mediation and outlines the requirements that parties must meet in order to participate in this process.
Despite publishing the Draft Guidelines to the public to collect the opinion, the Draft Law has yet to come into effect the date. A date on which such Draft Guidelines will come into force cannot currently be anticipated. Is there any legislation governing conciliation in your jurisdiction? Do the existing laws distinguish between conciliation and mediation?In KSA, there is no specific law related to conciliation. But there are some laws or rules that include conciliation as part of their disputes process.
For example, according to Saudi Labour Law, the employer or the employee should file a case with the concerned labor office to work for an amicable settlement according to the directives which have issued by the Council of Ministers. If there is no settlement within a period of twenty-one (21) days, the labor offices should report the status of the dispute in an electronic form to the labor court to proceed with the necessary judicial procedures.
Is conciliation/mediation court-annexed (administered by the courts) or voluntary (administered by the parties), or both?Saudi Arabia Royal Decree No. M93/1441 (Saudi Arabia Cabinet Decision No. 511 /1441) mandates mediation prior to the commencement of litigation as a means of dispute resolution and establishes mediation offices within certain courts, such as the Family Courts and the Labour Courts.
Articles 8 of the CCL and 16 of its Implementing Regulations compels the parties to a commercial dispute to mediate before filing the case.
Could you please specify the types of disputes that can/ cannot be referred to mediation in your jurisdiction? Are there certain kinds of dispute, or sectors, in which mediation is common in your jurisdiction?In general, all labour and commercial disputes should be referred to mediation. For example, the CCL states the cases that must be referred to initial mediation including:
Disputes arising between merchants due to their main or supporting business activities.
Cases filed against a merchant in commercial contract disputes if the original Law of Commercial Courts.
Disputes between partners in a Mudaraba company.
Claims and violations arising from the implementation of the Companies Law.
Claims and violations arising from the implementation of intellectual property laws.
Claims and violations arising from the implementation of other commercial laws.
Cases and claims related to appointed judicial receivers, trustees, liquidators, or experts, and the like, if the dispute is related to cases falling under the jurisdiction of the court.
Does the mediation legislation provide for “without prejudice communications”? Is the concept of “without prejudice” communication recognized in the general law.No, not currently. However, the New Draft Law does provide for such “without prejudice communications.” The concept is not recognized the general law of KSA
Are settlement agreements resulting from mediation enforceable before the Courts?Yes, Saudi law recognizes the maxim “the contract is the law of the parties” – in effect so long as something is not forbidden (such as alcohol or pork products) by the Sharia (or otherwise regulated by statute) it is permitted.
Does the law in your jurisdiction address the suspension of the limitation period during mediation process?The Saudi judiciary operates under the principle of the statute of limitations in a variety of cases, although in many cases, there is no clear-cut legal provision that specifies a fixed time period. The determination of the limitation period is left to the discretion of the Court and depends on the specific circumstances of each case. As a result, considering that the mediation process suspends the limitation of time it is also at the discretion of the Court.
How mediations may impact limitation periods is a sensitive legal question and we strongly encourage you to reach out to our team if you have any queries regarding this topic.
Does the law in your jurisdiction allow parties to take interim measures during the mediation process?According to the Saudi Evidence Law and Commercial Court Law, during dispute settlement proceedings, pursuant to a request of a party or their legal representative or from agencies, organizations or individuals, the Court handling the case may apply one or many emergency interim measures in order to address an urgent claim of a party, protect life, health, and property, collect and protect evidence, and preserve the status quo. An interim measure may also be issued in order to prevent irrecoverable damage as well as ensure the settlement of the case or enforcement of a judgment.
Are there any mediation/conciliation centers in your jurisdiction? Please specify whether they are private or public (or list them if possible)Yes. The Saudi Center for Commercial Arbitration (SCCA), a non-profit organization was established by ministerial council decision in 2014 to administer Alternative Dispute Resolution (ADR) procedures in commercial disputes where parties agree to refer their disputes to SCCA Arbitration and Mediation.
Does the law in your jurisdiction set out specific criteria for qualifying as mediators/conciliators? Please specify whether there is a Code of Professional Conduct governing the profession of meditator in your jurisdiction.Only SCCA has certain conditions that should be met in order to be approved as a mediator.
The SCCA has a Code of Conducts for Arbitrators which applies to mediators.
Is your jurisdiction party to the “Singapore Convention on Mediation” (United Nations Convention on International Settlement Agreements Resulting from Mediation)? If not, could you please indicate whether your jurisdiction will potentially sign or ratify this Convention?Yes, the official order giving effect to the Singapore Convention was the Royal Decree No. 96, issued on 9 April 2020.
Are there any mediation training centres in your jurisdiction?Yes, including the SCCA.
Does your jurisdiction provide e-mediation? (i.e., automated online dispute resolution system with no interaction from a third party at all).Not yet, but parties can file their applications or cases, for example, with the SCCA fully online.
