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Arbitration in Saudi Arabia : a critical investigation of the disconnect between law and practice

Saudi Arabia in 2012 introduced a new Arbitration Law and an Enforcement Law designed to conform to international best practice, but still requiring that arbitration conform to the principles of Sharia, and that the award should not conflict with Saudi public policy or Sharia. Many former limits are removed, so that although arbitrators must apply Sharia principles, there is no longer a specific exclusion of non Muslim or female arbitrators. However, although Sharia is the basic law of Saudi Arabia, the different schools of legal philosophy interpret it differently, and there remains a reluctance on the part of foreign commercial parties to accept arbitration under the new laws. Meanwhile, Gulf Coast states such as Qatar and the UAE have permitted the French based International Chamber of Commerce to establish arbitration centres. A study of the way in which the new law is viewed by the Saudi Arabian judiciary, arbitrators and academics gives insight into problems remaining since the new laws were introduced, and into perceptions of the new laws, explaining continuing issues, such as the preference for traditional methods of resolving disputes, concerns about the role of the Sharia and public policy, and suggesting that the law on paper is overshadowed by false perceptions.Following interviews with the judiciary, arbitrators and academic lawyers, a further series of interviews were conducted in the business community, giving insight into their preference for traditional methods of dispute resolution, and their experience of the continuing reluctance of the international business community to enter into trade agreements specifying arbitration by Saudi laws. This insight suggests that Saudi Arabia would find more willingness to adopt the new laws if there were an international arbitration centre in Saudi Arabia and if Sharia law were codified.

Identiferoai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:725330
Date January 2017
CreatorsAl-Zahrani, Saeed Abdullah Badawi
PublisherQueen's University Belfast
Source SetsEthos UK
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation

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