The Saudi enforcement judiciary has dealt with 75,000 arbitration awards and conciliation deeds with a total value of SAR 7.6 billion over the past five years.

“These figures stress the governmental, legislative and judicial support for Alternative Dispute Resolution (ADR), including the issuance of several laws, such as the Enforcement Law, the Arbitration Law, and the Government Tenders Law,” said the Saudi Ministry of Justice (MoJ). “In addition, several royal orders have promoted ADR solutions due to their key role in boosting the business environment and encouraging local and foreign investment.”

“The enforcement courts have handled a total of 75,000 arbitration awards and conciliation deeds, with a total value of SAR 7.6 billion. They include 25,000 awards worth SAR 4.7 billion, and 50,000 conciliation deeds worth 2.9 billion. “These figures reflect the Saudi enforcement judiciary’s effectiveness in implementing local awards issued by the Saudi Center for Commercial Arbitration, as well as foreign arbitration awards.”

The MoJ also revealed that the enforcement of arbitration awards has increased by over 880% over the past five years: In the Hijri year 1437, 930 awards were enforced, compared to 8,946 in the past year (1441). “The ministry is working to streamline and fast-track procedures whether for local or international arbitration awards.”

“Through its various initiatives and media channels, the ministry has sought to enhance mediation and conciliation, and promote the conciliation culture,” said Sulaiman al-Olayan, deputy minister’s assistant for court affairs and supervisor of the Conciliation Center. “It has upgraded conciliation procedures by launching the Conciliation Center and digitizing the conciliation process through the Taradhi platform.”

Al-Olayan added that mediation and conciliation are among the most effective options for the amicable resolution of disputes as they achieve swift justice and reduce litigation costs and effects. “Under Article 9(3) of the Enforcement Law, a conciliation deed is recognized as an enforcement instrument that cannot be challenged or appealed.”

“The MoJ’s Conciliation Center is committed to the principles of professionalism, quality, confidentiality, and impartiality,” he added. “The center tackles various types of cases: family, commercial, criminal, civil, and traffic; among others.” Clients can file for conciliation through the Taradhi platform at taradhi.moj.gov.sa, which uses in-person and virtual sessions depending on the case type, then digitally issues and certifies a conciliation deed.

“The Saudi Center for Commercial Arbitration provides institutional arbitration and mediation services in Arabic and English under the highest international standards,” said the Center’s Director Hamid Mira. “The center is committed to providing swift, professional and transparent ADR services.”

Mira added that arbitration is among the most preferable options for investors due to the strong enforceability of awards, as well as the privacy, flexibility and speed of procedures.

“One of the most important factors for a safe and stable business environment is the swift resolution of disputes,” Mira noted. “Saudi Arabia has enhanced its economic environment by developing the justice system, including arbitration; and the Foreign Investment Law, which provides for an environment appropriate for attracting foreign investments,” he added. “The new Arbitration Law is a quantum leap in legislation.”