SCCA and Saudi Ministry of Foreign Affairs Cooperate to Promote KSA as a Safe Arbitration Seat

Published Date: 09/11/2023

Redoubling official efforts to promote the Saudi Arabia as a safe arbitration seat and highlight the progress made by Saudi decision makers in empowering the alternative dispute resolution industry, the Saudi Center for Commercial Arbitration (SCCA) has signed a memorandum of understanding with the Saudi Ministry of Foreign Affairs to establish channels of cooperation between them to promote institutional arbitration in Saudi Arabia as an effective alternative for resolving the commercial disputes of foreign investors and international business.

The MOU was signed in a ceremony at the Ministry of Foreign Affairs headquarters in Riyadh on Wednesday, 8 November 2023. SCCA was represented by CEO Dr. Hamed Bin Hassan Merah, while the Ministry was represented by its Director General of Legal Affairs, Mr. Mohammed Bin Saud Al Nasser.

The MOU covers a number of aspects of cooperation between SCCA and the Ministry, most significantly the inclusion of the SCCA arbitration clause in Ministry contracts and Ministry-connected contracts, in addition to efforts to improve the drafting of dispute resolution clauses and disseminate them in accordance with the relevant laws and instructions. In addition, the two institutions will work in tandem to raise awareness of Saudi Arabia’s role and achievements in empowering the ADR industry, in cooperation with Saudi diplomatic missions. 

This aspect involves a number of activities that the parties will carry out, such as holding introductory meetings with Saudi foreign missions to introduce them to SCCA’s services and its effective, practical solutions for resolving commercial disputes, such as institutional arbitration, institutional mediation, and so on, which align with international best practices. 

According to the MOU, SCCA will familiarize members of the Saudi diplomatic corps with arbitration and other forms of ADR. SCCA and the Ministry will cooperate to promote Saudi Arabia as a safe arbitration seat and highlight its executive, legislative, and judicial efforts toward that end, relying on both institutions’ media channels and social media. 

SCCA will also offer Ministry employees professional development services in the practice of ADR, especially arbitration. This will include holding specialized training programs offered by SCCA Academy, the training arm of SCCA. The MOU also provides for the exchange of data and information for the preparation of ADR-related studies. 

This step highlights the reality of the arbitration industry in Saudi Arabia and its achievements toward transforming its judicial environment into a safe and supportive environment for arbitration, thus contributing to the ascent of Saudi Arabia in international rankings, supporting the growth of business sectors, and attracting international and local capital and investments.