Recent KSA Judgments: KSA Arbitration Law distinct from Civil and Commercial Procedure
Dispute Resolution / KSA
The judgments make it clear that the Saudi Arbitration Law is not a mere extension or special application of other procedural laws but stands as a self-contained legal regime governing all aspects of arbitration.
Law Update: Issue 379 – Saudi Arabia
Muhammad El HagganSenior Associate,Dispute Resolution
Zane AnaniSenior Knowledge Lawyer (Consultant),Dispute Resolution
Arbitration is becoming a popular commercial dispute resolution in Saudi Arabia, especially with the increasing complexity and internationalization of business transactions. The Saudi Arbitration Law, promulgated by Royal Decree No. M/34 of 1433H (as amended), has established a modern and robust framework for arbitration, emphasizing its independence from other procedural laws such as the Civil Procedures Law or the Commercial Courts Law.
This article will discuss the principle of the independence of the Saudi Arbitration Law as articulated in recent Saudi judgments, analyse the statutory basis for this principle, and discusses its implications for arbitration practice in Saudi.
Historically, arbitration in Saudi Arabia was often viewed through the lens of general procedural laws, with tribunals sometimes applying provisions from the Civil Procedures Law or the Commercial Courts Law to arbitration proceedings, under the pretence that court procedural rules should be carried across to arbitral proceedings conducted in Saudi Arabia. However, with the enactment of the new Saudi Arbitration Law, Saudi Arabia has aligned its arbitration regime with international best practices, granting arbitration a distinct and autonomous legal status.
This shift is particularly significant in the context of the Kingdom’s Vision 2030, which aims to enhance the attractiveness of Saudi Arabia as a hub for international business and dispute resolution.
Recent Saudi judgments, including those from the Commercial Court of Appeal in Riyadh and the Supreme Court, have affirmed the independence of the Arbitration Law from court procedural rules. This is similar to a majority of jurisdictions, rigid in terms of flexibility and the limitations on party autonomy with respect to procedures before national courts. The judgments make it clear that the Saudi Arbitration Law is not a mere extension or special application of other procedural laws but stands as a self-contained legal regime governing all aspects of arbitration, from the formation of the arbitration agreement to the enforcement or annulment of arbitral awards.
In a judgment issued by the Commercial Court in Riyadh (case number 4670377800) the court addressed a challenge to an arbitral award on the grounds of alleged procedural irregularities and purported violations of the Saudi legal framework. The court emphasized that the Saudi Arbitration Law provides a comprehensive and exclusive framework for the conduct of arbitration proceedings. It specifically noted that the grounds for challenging or annulling an arbitral award are exhaustively set out in the Arbitration Law itself, particularly in Article 50, and that the court’s review is strictly limited to these grounds. The court further clarified that it is not permitted to apply the general rules of the Civil Procedures Law or the Commercial Courts Law to arbitration matters unless expressly provided for in the Saudi Arbitration Law.
Similarly, the Supreme Court (in case number 41176982) reinforced this principle by stating that the Saudi Arbitration Law is a standalone legal system. The court highlighted that the only permissible method of challenging an arbitral award is through a claim for annulment as specified in the Saudi Arbitration Law. The Supreme Court underscored that the procedural and substantive rules governing arbitration are those set out in the Saudi Arbitration Law, and that the courts are not authorized to review the merits of the dispute or apply other procedural laws to arbitration cases. The court’s role is confined to ensuring that the arbitration process and award comply with the specific requirements of the Saudi Arbitration Law and, where relevant, the agreed rules of the parties, provided they do not contravene Shari’ah principles or public order. The court further emphasized that the limitations imposed upon the court’s review of an arbitral award are set out under Article 50 of the Saudi Arbitration Law, thus procedures agreed by the parties (or provided by the tribunal or the Arbitration Law in absence of the agreement of the parties) shall remain valid to the extent they do not affect the validity of the award.
The Saudi Arbitration Law itself explicitly establishes its independence. Article 2 of the Law states that its provisions apply to any arbitration conducted within the Kingdom or, in the case of international commercial arbitration, where the parties have agreed to its application. The Law further provides that its rules are applicable “without prejudice to the rules of the Islamic Sharia and the rules of the international conventions in which the Kingdom is included as one of its parties.” Nowhere does the Law subordinate itself to the Civil Procedures Law or the Commercial Courts Law; rather, it sets out its own procedures for the appointment of arbitrators, conduct of proceedings, issuance and enforcement of awards, and grounds for annulment.
Article 49 of the Arbitration Law is particularly instructive, as it provides that arbitral awards issued in accordance with the Law are not subject to appeal by any means other than a claim for annulment as specified in the Law. Article 50 then enumerates the exclusive grounds for annulment, and Article 54 clarifies that the filing of an annulment claim does not automatically stay enforcement of the award unless the court orders otherwise for serious reasons. These provisions collectively demonstrate the self-contained nature of the Arbitration Law and its procedural autonomy.
One of the key benefits of arbitration is that parties have the right to depart from the strict procedural requirements of the courts. Pursuant to Article 25 of the Arbitration Law, parties have the freedom to choose their own procedure, including adopting the rules of a (domestic or international) arbitral institution. Absent an agreed procedure, the tribunal may set the procedure it finds appropriate, while applying Shari’ah principles and the provisions of the Saudi Arbitration Law.
It is, however, common in cases of ad hoc arbitration for tribunals (or sole arbitrators) to replicate procedural rules adopted by the courts. While this may not be the reason parties chose to arbitrate their disputes, the consensus is that the Saudi courts confirm the independence of the Arbitration Law from other procedural laws in Saudi Arabia. This will encourage stakeholders to gradually depart from such practices to a more party autonomy oriented and liberating arbitral procedures.
The principle that the Saudi Arbitration Law is an independent and self-contained legal regime is now firmly established in both law and judicial practice. The Saudi courts have consistently affirmed that arbitration is governed exclusively by the Saudi Arbitration Law, and that the application of other procedural laws is not permitted unless expressly provided for. This independence ensures certainty, predictability, and efficiency in arbitration proceedings, and aligns the Saudi arbitration framework with international standards. For parties engaging in arbitration in Saudi Arabia, this means that their disputes will be resolved according to a clear, specialized, and autonomous set of rules, free from the uncertainties that might arise from the application of general procedural laws. This development marks a significant step forward in the evolution of arbitration in the Kingdom and enhances its status as a preferred venue for commercial dispute resolution.
For further information,please contact Muhammad El Haggan and Zane Anani.
Published in September 2025
