Saudi Arabia’s Arbitration Framework: A new step toward greater transparency

On 1 July 2026, the Saudi Center for Commercial Arbitration (“SCCA”) has published a country report on arbitration in Saudi Arabia, focusing on Saudi case law, commentaries, and legislation in light of the UNCITRAL Model Law and the Saudi Arbitration Law.

This project is important because it provides a clearer picture of how arbitration is developing in the Kingdom. It looks at how Saudi courts have dealt with arbitration-related issues, including the enforcement and annulment of arbitral awards, the role of courts in arbitration, electronic notification, party autonomy and public policy.

One of the key outcomes of the study is that Saudi courts continue to show supportive approach to arbitration. The report highlights that courts respect arbitration agreements, limit their intervention to the cases allowed by law, and avoid re-examining the merits of arbitral awards. This is an important point for both local and international businesses, as it supports confidence in Saudi Arabia as a seat (place) for arbitration.

An important part of the report is its review of annulment applications before the Saudi courts. The report found that, out of 967 arbitration-related judgements reviewed between January 2023 and June 2025, 194 cases involved annulment application, representing 20.1% of the judgements reviewed. Of those annulment applications, 174 were rejected, giving a rejection rate of 89.7%.

These numbers are important because they show that Saudi courts do not treat annulment as a chance to re-open the case. The report explains that Saudi courts treat annulment grounds as exhaustive, and that the Courts of appeal may not revisit the facts or re-examine the merits of the dispute. In other words, the courts are applying the annulment grounds narrowly and generally preserving the finality of arbitral awards.

Only 20 annulment applications were granted, representing 10.3% of annulment applications. Of these, 12 cases resulted in full annulment (6.2%) and 8 cases resulted in partial annulment (4.1%).

Most importantly, the report shows that Sharia is not an issue in practice in the way that some foreign law practitioners may believe. The report found only one case where annulment was based on Sharia grounds, representing only 0.52% of annulment application. Even in that case, the court also relied on public policy and other grounds. Public policy was also rarely used, appearing in only three cases, or 1.55% of annulment application.

The report also refers to SCCA’s previous studies. When considered together, more than 3,300 judgements were analyzed between 2017 and 2025, including 565 annulment applications. Of those, 518 were rejected, representing 91.7%, while only 47 were accepted, representing 8.3% annulment based on Sharia or public policy was limited to 13 cases, representing 2.3%.

Another useful point in the report is the Riyadh Court of Appeal decision involving the SCCA Court. In that case, the Court respected the parties’ agreement to apply the SCCA Rules and held that the SCCA Court’s decision on an arbitrator challenge was not subject to judicial challenge. This is important because it shows that Saudi courts are not only supportive of arbitration generally but are also willing to respect institutional arbitration rules and decisions made under those rules.

The report also briefly reviews three arbitral awards issued in cases administered under the SCCA Arbitration Rules. While the report does not draw broad conclusions from this limited sample, the awards help show how the SCCA Rules, the Saudi Arbitration Law, and Model Law principles are being applied in practice.

The report also shows that Saudi Arabia’s arbitration framework, in its draft arbitration law, is moving closer to international standards. It highlights several developments, including more flexibility in arbitral procedures, greater use of electronic communications, recognition of virtual hearings, and improvements relating to interim measures and enforcement.

More broadly, the project support Saudi Arabia’s wider legal and economic reforms under Vision 2030. A clear and modern arbitration framework is important for investors, businesses, and legal practitioners. It helps show that Saudi Arabia is continuing to build a dispute resolution environment that is transparent, predictable, and aligned with international practice.

Overall, this project is a useful contribution to the arbitration community. It does not only explain the law but also shows how the law is being applied in practice by Saudi Courts and arbitral tribunal. This makes the report valuable for anyone interested in arbitration in Saudi Arabia and the future of dispute resolution in the Kingdom.

To discuss or for additional information, please contact Talal Alothman.