Saudi Centre for Commercial Arbitration's updated rules - an overview
The Saudi Centre for Commercial Arbitration (SCCA) has recently updated its arbitration rules, which came into effect on 1 May 2023 (the Rules). The Rules reflect the SCCA's commitment to enhancing the quality and efficiency of the arbitration process in Saudi Arabia, and are expected to further increase the attractiveness of the SCCA for domestic and international parties alike.
One of the key changes introduced by the Rules is that it no longer makes references to Shari’a law principles that underpin the Kingdom’s legislation, and instead, Article 27 refers only to “applicable rules”. However, for arbitrations that are seated in Saudi Arabia, Shari’a law will continue to apply as a matter of law and public policy for purposes of enforcement. Further, and similar to the DIAC Arbitration Court, the Rules have defined and empowered the SCCA Court to determine administrative and technical matters related to arbitrations, such as, to name but a few, appointment of arbitrators (Article 17), deciding on the consolidation of arbitrations (Article 13) and reviewing and approving arbitration awards (Article 36).
Another important feature of the Rules is the promotion of using modern technology for document filing and case management, as well as creating the default position for conducting administrative conferences to be held remotely, either by videoconference, telephone, or “any other means of remote communication” (Article 10). The Rules also provide for greater disclosure obligations on arbitrators and parties, ensuring that conflicts of interest are identified and addressed at an early stage.
The Rules also include provisions aimed at enhancing the efficiency and speed of the arbitration process. For example, they allow for the consolidation of multiple arbitrations and emergency arbitrators now only have 15 days from the date of transmission of the file to issue an interim award. This is a step forward in the preservation of the parties’ interest. The Rules also introduce strict time limits for the submission of written submissions and the rendering of awards; the arbitral tribunal must issue the award within 75 days from the date of closing of proceedings, (extended from 60 days in the 2018 SCCA Arbitration Rules), which should help to ensure that arbitrations are completed in a timely manner.
The SCCA has positioned itself as a leading arbitral institution in the Middle East, and the Rules are a reflection of its commitment to providing a world-class arbitration service. By introducing innovative features and expanding its jurisdiction, the SCCA is well-placed to attract a wider range of disputes and parties.
The SCCA's updated rules also align with Saudi Arabia's Vision 2030, which aims to promote the country as a hub for commercial and investment activities. By enhancing the quality and efficiency of the arbitration process, the SCCA is playing an important role in achieving this vision, and is helping to position Saudi Arabia as a key player in the global arbitration market.
In conclusion, the updated SCCA arbitration rules are a positive development for the arbitration community in Saudi Arabia and beyond. They offer parties greater flexibility, speed, and transparency, and are an important step forward for the continued growth of international arbitration in the Middle East. We look forward to seeing how these Rules will be implemented in practice, and to the impact they will have on the resolution of commercial disputes in Saudi Arabia.
Authors
Rabih Tabbara, Partner
Nour Al Jaghoub, Associate
