Selecting the appropriate arbitral institution is a critical decision for parties involved in a dispute. It is essential to ensure that the arbitral institution is capable and experienced in administering arbitrations effectively and that the procedural rules are familiar and instill confidence in all parties.
This second edition of the SCCA Arbitration Rules (the “Rules”) is a testament to the Saudi Center for Commercial Arbitration’s (the “SCCA”) commitment to providing first-class case administration services while offering the flexibility to meet clients’ evolving needs. The Rules are designed to respond to the unique characteristics of each dispute, emphasizing party autonomy and the right of users to determine how their disputes are resolved.
At the same time, the Rules contain prescriptive provisions to ensure that disputes are resolved fairly, efficiently, and promptly while upholding the fundamental principle of due process. Robust governance under the Rules aims to maximize process efficiency by addressing threshold issues early, promptly appointing the Arbitral Tribunal, and managing the parties and process without incurring unnecessary costs and delays. The Rules are developed in accordance with international best practices, making them a reliable choice for parties seeking to resolve their disputes through arbitration.
The Rules were first adopted on 1 May 2016. This second edition was developed with the expertise and support of the SCCA Rules Advisory Committee and the input from local and international practitioners, following extensive public consultation. The Rules, which came into effect on 1 May 2023, are a result of a comprehensive review and improvement process aimed at enhancing efficiency, reducing costs, and optimizing the arbitration process.
The Rules introduce several amendments that promote effective case management and address emerging issues and practices. The SCCA Court is now empowered to determine key administrative aspects of the arbitration process, such as the appointment/removal of arbitrators, fixing of costs, consolidation, and award review. The Rules encourage the use of technology, such as the electronic transmission of documents, presentation of evidence utilizing electronic means, and the electronic signing of awards, to minimize the environmental impact and optimize efficiency. Additionally, small claims disputes not exceeding a certain threshold are automatically subjected to the Online Dispute Resolution Procedure Rules.
The Rules also regulate arbitrations involving multiple contracts and parties, with provisions for joinder, consolidation, and coordination of parallel arbitrations. There is a greater emphasis on transparency, with the disclosure of non-parties with an economic interest in the outcome, such as third-party funders. The composition of the Arbitral Tribunal is governed robustly, with two additional reasons to challenge an arbitrator for failing to perform or lacking the qualifications agreed upon by the parties.
The discretion of the Arbitral Tribunal is expanded, with the right to control and supervise changes in party representatives, encourage amicable dispute resolution, limit the length of written statements and document requests, and conduct hearings remotely. The Rules also prioritize cybersecurity, privacy, and data protection.
Overall, this second edition builds upon the success of its predecessor and represents the most up-to-date and comprehensive set of rules for international arbitration. The Rules apply to all arbitrations filed on or after 1 May 2023.
The Expedited Procedure Rules were first adopted on 15 October 2018 and have been revised to align with the amendments made to the Rules. The second edition of the Expedited Procedure Rules applies alongside the Rules and prevails over the Rules in case of conflict. The Expedited Procedure Rules were designed for disputes of reduced size or complexity, where the complete procedural protocol provided by the Rules is not justified. The most prominent feature of the Expedited Procedure Rules is that only one arbitrator is appointed to hear the case in a single hearing day. Moreover, the sole arbitrator must issue the final award within 30 days from the date of closure of the proceedings, or within 180 days from the date of the arbitrator’s appointment, whichever event occurs first. The Expedited Procedure Rules also provide parties with a fast tracked and streamlined process, the option of having the arbitrator decide the dispute based solely on written submissions, and abbreviated time limits.
The Expedited Procedure Rules automatically apply where the aggregate amount in dispute does not exceed SAR 4,000,000 (exclusive of costs of arbitration), but parties may opt into the Expedited Procedure Rules regardless of the aggregate amount in dispute.
The second edition of the Expedited Procedure Rules came into effect on 1 May 2023 and applies to all arbitrations filed on or after this date, regardless of the date the parties concluded their contract.
The Emergency Arbitrator Procedure Rules were first adopted on 15 October 2018 and have been revised to align with the amendments made to the Rules. The Emergency Arbitrator Procedure Rules enable parties to seek emergency relief without having to wait for the constitution of the Arbitral Tribunal by applying for the appointment of an Emergency Arbitrator to consider the application. In contrast to the previous edition, the revised Emergency Arbitrator Procedure Rules provide greater flexibility by allowing any party to file an application for emergency relief even before transmitting a Request for Arbitration to the SCCA. However, the Request for Arbitration must follow within 10 calendar days to avoid the termination of the emergency arbitration.
Appendix III comprehensively outlines the emergency arbitration process, from the filing of the application to the issuance of the interim award or order, with clear and efficient timelines. The Emergency Arbitrator must be appointed within one business day from the date of commencement of the emergency arbitration, and the interim award or order must be issued within 14 days from the date on which the case file has been transmitted to the Emergency Arbitrator.
The revised Emergency Arbitrator Procedure Rules came into effect on 1 May 2023 and apply to all arbitrations filed on or after this date.
The Online Dispute Resolution (“ODR”) Procedure Rules were first adopted on 15 October 2018 and have been revised once before on 1 July 2021. This third edition has been revised to align with the amendments made to the Rules. The third edition of the ODR Procedure Rules applies alongside the Rules and prevails over the Rules in case of conflict. The ODR Procedure Rules are specifically tailored for small disputes where the aggregate amount in dispute does not exceed SAR 200,000 (exclusive of costs of arbitration). Under the ODR Procedure Rules, the SCCA shall promptly appoint a sole arbitrator. The arbitrator shall then issue the final award within 30 days from the date of his or her appointment. The final award is typically based on the parties’ written submissions, unless the parties agree otherwise or the arbitrator deems it necessary to hold a hearing, which would typically be held via phone or videoconference.
The third edition of the ODR Procedure Rules came into effect on 1 May 2023 and applies to all arbitrations filed on or after this date, regardless of the date the parties concluded their contract.
This book provides several model clauses for parties seeking to settle their disputes through arbitration administered by the SCCA. These model clauses have been drafted in a clear and concise manner to facilitate their use. Parties are encouraged to consider incorporating additional elements into their clauses, such as the number of arbitrators, the place of arbitration, or the language of arbitration, to tailor the clause to their specific needs. If parties wish to include an SCCA arbitration clause in their contract, they should review the SCCA Guide to Drafting Dispute Resolution Clauses, available on the SCCA’s website at www.sadr.org, and seek legal advice as necessary.
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In these SCCA Arbitration Rules and appendices, the following words have these meanings:
The Administrator may conduct an administrative conference before the Arbitral Tribunal is constituted to facilitate party discussion and agreement on issues such as arbitrator selection, process efficiencies, and any other administrative matters. Unless the parties agree otherwise, the administrative conference shall be held remotely by videoconference, telephone, or any other appropriate means of remote communication.
After consultation with the parties, the Arbitral Tribunal may coordinate the proceedings in two or more arbitrations under these Rules, including by aligning specific procedural aspects of the arbitrations, issuing a single award in relation to all arbitrations, or suspending any of those arbitrations until after the determination in another, where:
If the parties have not previously agreed on the number of arbitrators, one arbitrator shall be appointed, unless the SCCA Court, after consultation with the parties, determines at its discretion that three arbitrators are appropriate because of the size, complexity, or other circumstances of the case.
Nomination under agreed procedure
If an arbitrator resigns or is removed for any reason and the office becomes vacant, a replacement arbitrator shall be appointed. The SCCA Court may decide to follow the original nominating process or otherwise make an appointment in accordance with Article 16.
The Arbitral Tribunal may, with the consent of the parties, appoint a tribunal secretary who shall serve in accordance with these Rules and the SCCA Secretary Regulations.
Arbitrators (including any Emergency Arbitrator), any person appointed by the Arbitral Tribunal, the Administrator, the SCCA Board of Directors and its members, the SCCA Court and its members, the SCCA Committees and their members, and the SCCA and its employees shall not be liable to any party for any act or omission in connection with any arbitration under these Rules, except to the extent that such a limitation of liability is prohibited by applicable law. The parties agree that none of the aforementioned persons or bodies shall be under any obligation to make any statement about the arbitration, and no party shall seek to make any of these persons or bodies a party or witness in any judicial or other proceeding related to the arbitration.
If the Arbitral Tribunal duly invites a party to attend any hearing, file a written submission, produce evidence, or take any other steps as ordered by the Arbitral Tribunal in the proceedings, and that party fails to do so on the date(s) or within the time established by the Arbitral Tribunal without showing sufficient cause for such failure, the Arbitral Tribunal nevertheless may proceed with the arbitration and issue a final award on the evidence before it.
A party who knows of any non-compliance with any provision or requirement of the Rules or the arbitration agreement and proceeds with the arbitration without promptly stating an objection in writing, shall be deemed to have waived its right to object.
A request to commence an arbitration in accordance with Article 5 of the Rules must be accompanied by a registration fee of SAR 5,000. Such payment is non‑refundable and shall be credited to the Claimant’s share of the SCCA administrative fees.
Upon receiving the Request for Arbitration, the Administrator may conduct an administrative conference with the parties and their representatives to discuss the application of these procedures, arbitrator selection, any attempt to mediate the dispute, and any other administrative matters.
If an objection is submitted as to the applicability of the Expedited Procedure Rules, the Administrator shall make a final determination.
If, after filing of the initial claims, a party amends its claim such that it exceeds SAR 4,000,000 exclusive of the costs of arbitration, the case shall continue to be administered in accordance with the Expedited Procedure Rules unless the parties agree, or the Administrator or Arbitral Tribunal determine, otherwise. After the Arbitral Tribunal is constituted, no new or different claim, nor any change in the amount in dispute, may be submitted unless the Arbitral Tribunal deems appropriate.
The SCCA administrative fees and the Arbitral Tribunal fees shall be determined by the SCCA Court in accordance with the SCCA Fee Schedule under the Expedited Procedure Rules in force at the time of the commencement of the arbitration.
Once the Emergency Arbitrator has been appointed, the Administrator shall so notify the parties and shall transmit the case file to the Emergency Arbitrator. Thereafter, all written communications from the parties related to the emergency arbitration shall be submitted directly to the Emergency Arbitrator with a copy to the other party and to the Administrator. A copy of any written communications from the Emergency Arbitrator to the parties shall be submitted to the Administrator.
Once the Arbitral Tribunal has been constituted, the Claimant shall pay additional deposits for SCCA administrative fees and Arbitral Tribunal fees as per the ODR Fee Schedule using the ODR Platform.
Unless the parties agree otherwise, the place of arbitration shall be Riyadh, Kingdom of Saudi Arabia.
Unless the parties agree otherwise, the language of arbitration shall be Arabic.
Parties seeking to include an SCCA arbitration clause in their contracts may utilize one of the model clauses provided below, in consultation with their legal counsel.
Parties can tailor the SCCA standard clauses to their specific needs by including additional elements such as the number of arbitrators, selection method, place of arbitration, and language of arbitration. The SCCA’s Guide to Drafting ADR Clauses at www.sadr.org can be consulted for guidance, and legal counsel should be consulted as needed.
If parties wish to utilize the Expedited Procedure Rules for disputes that exceed SAR 4,000,000, they must opt in by explicitly adding a provision to the following effect:
If parties wish to exclude the application of the Expedited Procedure Rules, Online Dispute Resolution Procedure Rules, or Emergency Arbitrator Procedure Rules, they must opt out by explicitly adding a provision to the following effect:
According to Article 36(3) of the Rules, the SCCA can publish any award, order, decision, or other ruling in an anonymized or redacted form unless a party objects before the arbitration concludes. If parties wish to prevent publication, they must explicitly add a provision to the following effect:
If parties choose a substantive law to govern the contract or the arbitration agreement but wish to subject such law to Shari’ah (especially when the place of arbitration is not Saudi Arabia), they may add a provision to the following effect:
According to Article 37(4) of the Rules, the default law governing the arbitration agreement shall be the law of the place of arbitration. If parties wish to choose another law, they must explicitly add a provision to the following effect: