Saudi Arabia has introduced new rules for commercial arbitration that emphasise the use of technology and empower tribunals to hold hearings remotely.
Arbitration expert Mark Raymont of Pinsent Masons said the new rules, published by the Saudi Center for Commercial Arbitration (SCCA), “represent a welcome modernisation of the existing rules that is bound to lead to an increase in their adoption in construction and other commercial contracts”.
“It's a really exciting time for arbitration in the region with the rise of the SCCA, having recently opened an office in the Dubai International Financial Centre to supplement its headquarters in Riyadh, and now enhanced its offering further with updated rules,” Raymont said.
The reforms, which came into force on 1 May, establish a new SCCA court with the power to make key administrative decisions related to arbitral proceedings and appointments of tribunals. The court will be comprised of 15 Saudi and international expert legal practitioners, retired judges, former leaders of arbitral institutions and academics.
The rules also encourage the use of technology when filing documents and managing cases, allowing parties to use e-documents and to sign awards with e-signatures. Small claims disputes, where the value of the dispute is less than SAR 200,000 (USD$53,000) can now be processed online. The SCCA said the reforms would help to minimise the environmental impact of arbitrations and reduce delays.
Arbitral tribunals have been granted wider discretionary powers, allowing them to determine the most effective format for hearings – including remote hearings – and reject changes in party representation. They can encourage parties to pursue mediation and limit the length of written statements and requests. The SCCA also has new powers to remove arbitrators who are not performing or lack the agreed qualifications required of them.
Raymont said: “Drawing on international best practice, the rules also include mechanisms for multi-party and multi-contract arbitrations, consolidation or coordination of parallel proceedings, third-party funding and the need for cybersecurity, privacy and data protection.”
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