Saudi Arabia’s 2023 SCCA Arbitration Rules: Key Updates and Comparative Analysis

For cross-border contracts in the GCC, Saudi Arabia’s 2023 revised SCCA Arbitration Rules offer a practical and flexible alternative to UAE centers, aligning with international best practices.

Arbitration has become a central mechanism for resolving commercial and cross-border disputes in the Gulf Cooperation Council (GCC), where international investment and regional trade continue to expand. As businesses look for reliable, efficient, and enforceable methods of dispute resolution, the region’s leading economies are modernizing their arbitral institutions to meet global standards.

In recent years, this modernization has translated into growing competition among regional hubs, particularly Saudi Arabia and the United Arab Emirates (UAE). Both have introduced new institutional frameworks and updated arbitration rules designed to strengthen their positions as preferred venues for international disputes.

Against this backdrop, the Saudi Center for Commercial Arbitration (SCCA) introduced its Revised Arbitration Rules (hereinafter, the “SCCA Arbitration Rules”) on May 1, 2023. The new framework aims to enhance efficiency, integrate technology, and bring Saudi Arabia in line with best practices observed in other leading global arbitration centres. This reform marks an important step in the Kingdom’s broader effort to position itself as a competitive destination for dispute resolution in the Middle East.

Evolution of arbitration in Saudi Arabia

Saudi Arabia’s journey toward establishing itself as a credible hub for arbitration has been relatively recent but marked by deliberate and strategic reforms. The SCCA was established in 2014 as the Kingdom’s first dedicated institution for alternative dispute resolution (ADR), with the mandate to offer arbitration and mediation services in both Arabic and English. This dual-language capacity was a significant development at the time, signaling an effort to accommodate international investors while maintaining accessibility for domestic businesses.

A major milestone came in 2022 with the creation of the independent SCCA Court, modeled on the supervisory structures of leading international arbitral institutions such as the International Court of Arbitration (ICC) and London Court of International Arbitration (LCIA). The SCCA Court is responsible for key administrative and procedural decisions, including the appointment and challenge of arbitrators, requests for consolidation, and the scrutiny of draft awards.

By introducing this supervisory body, Saudi Arabia moved closer to international best practice, ensuring both greater consistency in arbitral proceedings and enhanced credibility in the enforcement of awards.

Key innovations in the 2023 SCCA Arbitraiton Rules

The 2023 revision of the SCCA Arbitration Rules marked a decisive step in modernizing Saudi Arabia’s arbitral framework, bringing it in line with international best practice while introducing innovations tailored to the Kingdom’s needs.

Several areas stand out as particularly significant.

Case management and efficiency

The SCCA Arbitration Rules raise the threshold for expedited proceedings to SAR 4 million (approximately US$1.07 million), a figure higher than that applied under the Dubai International Arbitration Centre (DIAC) but still below the ICC standard. Under these streamlined procedures, tribunals are required to render final awards within 180 days, significantly reducing the time and cost of proceedings.

The introduction of early disposition mechanisms under Article 26 further strengthens efficiency, allowing tribunals to dismiss claims or defenses that are manifestly without merit at an early stage. Importantly, the rules impose an explicit duty on tribunals to balance efficiency with the parties’ right to be heard, reflecting a conscious effort to ensure speed does not come at the expense of due process.

Digitalization and greener arbitration

The 2023 SCCA Arbitration Rules embrace digitalization as a core element of arbitration practice. Awards are now signed electronically by default, while pleadings and notices may be submitted electronically, reducing reliance on paper filings.

A notable innovation is the introduction of Online Dispute Resolution (ODR) for disputes below SAR 200,000 (US$53,326), with Riyadh designated as the default seat and Arabic as the default language. Besides digitalization efforts, these reforms also resonate with international “green arbitration” protocols, which promote environmentally responsible practices.

Joinder, consolidation, and multi-party arbitration

The revised rules expand the ability to manage complex, multi-party disputes. Joinder provisions are now aligned with those of leading institutions such as the ICC, DIAC, and LCIA. Consolidation is permitted in broader circumstances, such as where claims arise from a common legal relationship or where arbitration agreements are sufficiently compatible.

Arbitrator appointment

A significant procedural development is the adoption of the “list method” for arbitrator appointments. Under this system, the SCCA Court provides the parties with identical lists of potential arbitrators, which they then rank in order of preference. If no agreement is reached, the Court makes the appointment directly.

Emergency relief

The rules strengthen provisions on emergency arbitration, a tool increasingly relied upon in international practice. Emergency arbitrators must now issue their decision within fourteen days of receiving the case file, a timeline designed to ensure genuinely urgent matters are resolved quickly. In addition, parties seeking emergency relief must file a request for arbitration within ten days of the emergency application, ensuring that such mechanisms are not misused as standalone proceedings.

Cybersecurity, privacy, and data protection

Article 46 of the SCCA Arbitration Rules provides a detailed framework for assessing the adequacy of information security measures, setting out five specific factors to guide tribunals and parties. This level of detail goes further than many other institutional rules, including the LCIA, and reflects growing concerns about data protection, confidentiality, and cyber risks in arbitral proceedings.

Representation by foreign lawyers

Finally, the SCCA Arbitration Rules clarify an issue that had previously been a source of uncertainty: the right of parties to appoint foreign legal practitioners. This explicit provision ensures international parties can rely on counsel of their choice, a critical step in aligning Saudi arbitration practice with global standards and reinforcing the Kingdom’s openness to cross-border commercial disputes.

Cost and accessibility

A further strength of the revised SCCA framework lies in its comparatively modest cost structure. When measured against leading regional and international arbitral institutions such as DIAC and the ICC, the SCCA consistently maintains lower administrative and tribunal fees. This makes it an attractive venue not only for large corporates but also for small and medium-sized enterprises (SMEs) and regional players who may otherwise find international arbitration prohibitively expensive.

The institution has also introduced greater transparency into its fee system through the publication of an online fee calculator, enabling parties to estimate administrative and tribunal costs at the outset of proceedings. This tool enhances predictability in budgeting and reduces uncertainty for businesses considering arbitration in Saudi Arabia.

Arbitration rules in comparative perspective: Saudi Arabia and the UAE

While both frameworks share common features (such as expedited procedures, consolidation, and greater reliance on digital processes) important distinctions remain between arbitration rules framework in Saudi Arabia and the UAE, as observable from the table below.

Key takeaways for businesses

Saudi Arabia’s revamped SCCA Rules make arbitration faster, more efficient, and cost-effective, especially for SMEs and regional players. Digital tools, online dispute resolution, and clear emergency procedures reduce delays and logistical burdens. With the SCCA Court and streamlined arbitrator appointment, even complex or multi-party disputes can be handled impartially and quickly.

For cross-border contracts in the GCC, Saudi arbitration is increasingly a practical alternative to UAE centres, offering both flexibility and alignment with international best practices.

Read more: How to Get 15% VAT Refund in Saudi Arabia

(US$1 = AED 3.67; US$1 = SAR 3.75)

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