Saudi Law

Article 11

1. A court before which a dispute, which is the subject of an arbitration agreement, is filed shall dismiss the case if the defendant raises such defense before any other claim or defense.

2. Filing the action referred to in Paragraph 1 of this Article, does not preclude the commencement or continuation of the arbitration proceedings or the rendering of the arbitration award.

Article 12

Subject to the provisions of Article 9 (Paragraph 1) of this Law, if an agreement to resort to arbitration is reached while the dispute is being considered before the competent court, said court shall refer the dispute to arbitration.

Arbitration Tribunal

Article 13

The arbitration tribunal shall be composed of one arbitrator or more, provided the number of arbitrators is an odd number; otherwise, the arbitration shall be void.

Article 14

An arbitrator shall satisfy the following conditions:

1. Be of full legal capacity;

2. Be of good conduct and reputation; and

3. Be a holder of at least a university degree in Sharia or law. If the arbitration tribunal is composed of more than one arbitrator, it is sufficient that the chairman meet such requirement.

Article 15

1- The two parties to the arbitration shall agree on appointment of arbitrators. If they fail to reach an agreement, the following shall apply:

a. If the arbitration tribunal is composed of one arbitrator, the competent court shall appoint that arbitrator.

b. If the arbitration tribunal is composed of three arbitrators, each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint the umpire. If a party fails to appoint his arbitrator within fifteen (15) days from receipt of a petition to this effect from the other party, or if the two appointed arbitrators fail to agree on appointment of the umpire within fifteen (15) days from date of appointment of the last arbitrator, the competent court, pursuant to a petition filed by the party seeking to expedite the arbitration, shall appoint the umpire within fifteen (15) days from date of submission of the petition. The umpire, whether selected by the two appointed arbitrators or appointed by the competent court, shall preside over the arbitration tribunal. These provisions shall apply to cases where the arbitration tribunal is composed of more than three arbitrators.

2- If the two parties to the arbitration fail to agree on the procedures for appointment of arbitrators, or if one party thereof fails to adhere to such procedures, or if the two appointed arbitrators fail to agree on a matter that requires their agreement, or if a third party fails to perform a function entrusted thereto under such procedure, the competent court shall, pursuant to a petition filed by the party seeking to expedite the arbitration, take the necessary measure or action unless the agreement provides for other means for completing such measure or action.

3- In appointing an arbitrator, the competent court shall observe the conditions stipulated in the arbitration agreement as well as the conditions required under this Law, and shall issue its decision appointing the arbitrator within thirty (30) days from the petition submission date.

4- Without prejudice to the provisions of Articles 49 and 50 of this Law, the decision of the competent court appointing the arbitrator shall not be independently subject to any form of appeal.

Article 16

1. An arbitrator shall have no vested interest in the dispute. He shall also, from the time of his appointment and throughout the arbitration proceedings, disclose to the arbitration parties in writing any circumstances likely to give rise to justifiable doubts as to his impartiality or independence, unless he has already informed them thereof.

2. An arbitrator shall be barred from considering or hearing a case for the same reasons for which a judge is barred, even if neither party so requests.

3. An arbitrator may not be disqualified except in the presence of circumstances giving rise to justifiable doubts as to his impartiality or independence, or if he lacks the qualifications agreed to by the arbitration parties, without prejudice to the provisions of Article 14 of this Law.

4. Neither arbitration party may disqualify an arbitrator appointed by him, or in whose appointment he participated, except for reasons that become known after the appointment of such arbitrator.

Article 17

1. If the two parties to arbitration fail to agree on a procedure for disqualifying an arbitrator, the party who seeks to disqualify an arbitrator shall, within five days from date of knowing of the formation of the arbitration tribunal or of any circumstances justifying such disqualification, send a written statement giving grounds for the disqualification of the arbitration tribunal. If the arbitrator sought to be disqualified fails to recuse himself or the other party rejects the petition for disqualification within five days from date of submission thereof, the arbitration tribunal shall decide on the disqualification within fifteen days from date of receipt of such petition. If the disqualification is not successful, the party seeking disqualification may petition the competent court, within thirty days, to decide on the disqualification; said court decision shall not be subject to appeal.

2. A disqualification petition may not be accepted from a party who has previously submitted a petition to disqualify the same arbitrator in the same arbitration on the same grounds.

3. Submission of a disqualification petition before an arbitration tribunal shall result in suspension of the arbitration proceedings. An appeal against the arbitration tribunal's decision rejecting the disqualification petition shall not result in suspension of the arbitration proceedings.

4. If the petition to disqualify an arbitrator is accepted, whether by the arbitration tribunal or by the competent court when considering an appeal, all previous arbitration procedures, including the arbitration award, shall be deemed null and void.

Article 18

1. If an arbitrator fails to perform his functions or ceases to do so in a manner that leads to unjustifiable delay in arbitration proceedings, and yet does not recuse himself and the two arbitration parties do not agree on dismissing him, the competent court may dismiss him pursuant to a petition by either party; said court decision shall not be subject to appeal.

2. Unless appointed by the competent court, an arbitrator may not be dismissed except by the consent of the two parties to arbitration, without prejudice to the provisions of Paragraph 1 of this Article. The dismissed arbitrator may claim compensation unless such dismissal is attributed to him.

Article 19

If the mandate of an arbitrator expires due to death, disqualification, dismissal, recusal, disability or any other reason, a replacement shall be appointed according to the procedures followed in the appointment of the arbitrator whose mandate has expired.

Article 20

1. The arbitration tribunal shall decide on any pleas related to its jurisdiction, including those based on absence of an arbitration agreement, expiry or nullity of such agreement or non-inclusion of the dispute subject-matter in the agreement.

2. Pleas of lack of jurisdiction shall be raised on dates referred to in Article 30 (Paragraph 2) of this Law. The appointment or participation in the appointment of an arbitrator by either party shall not preclude his right to file any of such pleas. The plea that the arbitration agreement does not include matters raised by the other party while the dispute is being reviewed must be raised immediately; otherwise, the right to raise such plea shall terminate. In all cases, the arbitration tribunal may accept a late plea if it deems the delay justified.

3. The arbitration tribunal shall decide on pleas referred to in Paragraph 1 of this Article prior to deciding on the subject of the dispute. However, it may join said pleas to the subject and decide on them both. If the arbitration tribunal decides to dismiss the plea, such plea may not be raised except through the filing of a case to nullify the arbitration award ending the entire dispute, pursuant to Article 54 of this Law.


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