General Provision
General Provisions
Article 1:
The following phrases, wherever mentioned in this Law, shall have the meanings assigned thereto, unless otherwise required by context:
1. Arbitration Agreement: it is an agreement between two or more parties to refer to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or non-contractual. An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate arbitration agreement.
2. Arbitration Tribunal: a sole arbitrator or a panel of arbitrators in charge of deciding a dispute referred to arbitration.
3. Competent Court: a court having legal jurisdiction to decide disputes agreed to be referred to arbitration.
Article 2
Without prejudice to provisions of Islamic Sharia and international conventions to which the Kingdom is a party, the provisions of this Law shall apply to any arbitration regardless of the nature of the legal relationship subject of the dispute, if this arbitration takes place in the Kingdom or is an international commercial arbitration taking place abroad and the parties thereof agree that the arbitration be subject to the provisions of this Law.
The provisions of this Law shall not apply to personal status disputes or matters not subject to reconciliation.
Article 3
Under this Law, arbitration shall be international if the dispute is related to international commerce, in the following cases:
1. If the parties to an arbitration agreement have their head office in more than one country at the time of conclusion of the arbitration agreement. If a party
has multiple places of business, consideration shall be given to the place of business most connected to the subject matter of the dispute. If either or both parties have no specific place of business, consideration shall be given to their place of residence.
2. If the two parties to arbitration have their head office in the same country at the time of conclusion of the arbitration agreement, and one of the following places is located outside said country:
a. The venue of arbitration as determined by or pursuant to the arbitration agreement;
b. Any place where a substantial part of the obligations of the commercial relationship between the two parties is executed;
c. The place most connected to the subject matter of the dispute;
3. If both parties agree to resort to an organization, standing arbitration tribunal or arbitration center situated outside the Kingdom;
4. If the subject matter of the dispute covered by the arbitration agreement is connected to more than one country.
Article 4
In cases where this Law allows the parties to arbitration to choose the procedure to be followed in a certain issue, this shall include the right of the two parties to authorize a third party to choose that procedure. A third party in this respect includes any individual, tribunal, organization, or arbitration center within the Kingdom or abroad.
Article 5
If both parties to arbitration agree to subject the relationship between them to the provisions of any document (model contract, international convention, etc.), then the provisions of such document, including those related to arbitration, shall apply, provided this is not in conflict with the provisions of Sharia.
Article 6
1. Unless otherwise agreed upon by the parties to arbitration regarding notifications, the written notice shall be delivered to the addressee personally or to his designee, or to the mailing address specified in the contract subject of the dispute or in the arbitration agreement or the document governing the relationship addressed by the arbitration.
2. If the written notice cannot be delivered to the addressee according to Paragraph 1 above, it shall be deemed to have been received if it is sent by
registered mail to the addressee’s last-known place of business, habitual residence or to a known mailing address.
3. The provisions of this Article shall not apply to judicial notifications relating to court proceedings with regard to nullification of the arbitration award.
Article 7
It shall be deemed a waiver of his right to object, if a party to arbitration proceeds with arbitration procedures knowing that a violation of a provision that may be agreed to be violated or of a term in the arbitration agreement was committed and he fails to object to such violation within the agreed upon period or within thirty days from his knowing of the violation in the absence of an agreement.
Article 8
1. The court of appeal originally deciding the dispute shall have jurisdiction to consider an action to nullify the arbitration award and matters referred to the competent court pursuant to this Law.
2. In case of an international commercial arbitration within the Kingdom or abroad, the court of appeal originally deciding the dispute in the city of Riyadh shall have jurisdiction, unless the two parties to arbitration agree on another court of appeal within the Kingdom.
Arbitration Agreement
Article 9
1. The arbitration agreement may be concluded prior to the occurrence of the dispute whether in the form of a separate agreement or stipulated in a specific contract. The arbitration agreement may also be concluded after the occurrence of a dispute, even if such dispute was the subject of an action before the competent court. In such a case, the agreement shall determine matters included in the arbitration; otherwise, the agreement shall be void.
2. The arbitration agreement shall be in writing; otherwise, it shall be void.
3. An arbitration agreement shall be deemed written if it is included in a document issued by the two parties or in an exchange of documented correspondence, telegrams or any other electronic or written means of communication. A reference in a contract or a mention therein of any document containing an arbitration clause shall constitute an arbitration agreement. Similarly, any reference in the contract to the provisions of a model contract, international convention or any other document containing an arbitration clause shall constitute a written arbitration agreement, if the reference clearly deems the clause as part of the contract.
Article 10
1. An arbitration agreement may only be concluded by persons having legal capacity to dispose of their rights (or designees) or by corporate persons.
2. Government bodies may not agree to enter into arbitration agreements except upon approval by the Prime Minister, unless allowed by a special provision of law.
PAGE 1 | 2 | 3 | 4 | 5 | 6