Saudi Law

Article 41

1. The arbitration proceedings shall terminate by the issuance of the award ending the dispute or by the issuance of a decision by the arbitration tribunal to end the proceedings in the following cases:

a. If both parties agree to terminate the arbitration proceedings;

b. If the plaintiff abandons the arbitration case, unless the arbitration tribunal decides, upon the defendant ’s request, that the latter has a genuine interest in the continuation of the arbitration proceedings until the dispute is decided;

c. If the arbitration tribunal deems, for any other reason, the continuation of the arbitration proceedings pointless or impossible;

d. The issuance of an order ending the arbitration proceedings pursuant to Article 34 (Paragraph 1) of this Law.

2. The arbitration proceedings shall not terminate upon the death of either arbitration party or loss of his legal capacity, unless a person with capacity in the dispute agrees with the other party to terminate the arbitration. In such case, the deadline for the arbitration shall be extended for thirty days, unless the arbitration tribunal decides to extend it for a similar period or the parties to arbitration agree otherwise.

3. Subject to the provisions of Articles 49, 50 and 51 of this Law, the mandate of the arbitration tribunal shall end upon completion of the arbitration proceedings.

Article 42

1. The arbitration award shall be made in writing and shall be reasoned and signed by the arbitrators. In case of multiple arbitrators, the signatures of the majority of arbitrators shall be sufficient, provided that grounds for the non-signing of the minority be recorded in the minutes.

2. The arbitration award shall include date of pronouncement and place of issuance; names and addresses of parties to the dispute; names of the arbitrators as well as their addresses, nationalities and capacities; a summary of the arbitration agreement and of the parties' statements, pleadings and documents; a summary of the expert report (if any); and text of the award. The award shall also determine arbitrators’ fees, costs of arbitration and their distribution between the parties, without prejudice to the provisions of Article 24 of this Law.

Article 43

1. The arbitration tribunal shall deliver to each arbitration party a true copy of the arbitration award within fifteen days from its date of issuance.

2. The arbitration award may not be published in whole or in part except with the written consent of the parties to arbitration.

Article 44

The arbitration tribunal shall deposit the original award or a signed copy thereof in its original language with the competent court within the period set in Article 43 (Paragraph 1) of this Law, accompanied by an Arabic translation of the award attested by an accredited body if the award is issued in a foreign language.

Article 45

If, during the arbitration proceedings, the parties agree on a settlement ending the dispute, they may request that the terms of settlement be recorded before the arbitration tribunal, which shall, in this case, issue an award which includes settlement terms and ends proceedings. Such award shall have the same force and effect as the arbitration awards.

Article 46

1. Either arbitration party may, within thirty days following the date of receipt of the arbitration award, petition the arbitration tribunal to interpret any ambiguity in the text of the award. The party requesting interpretation shall, prior to submitting the petition to the tribunal, send a copy of such petition to the other party at the address specified in the arbitration award.

2. The interpretation shall be issued in writing within thirty days following the date on which the petition for interpretation was submitted to the arbitration tribunal.

3. The decision of interpretation shall be deemed complementary to the relevant arbitration award and subject to rules applicable thereto.

Article 47

1. The arbitration tribunal shall, pursuant to its own decision or upon request by either party, rectify any material errors in its award, whether in text or in calculation. The rectification shall be carried out without pleadings within fifteen days following the date of rendering the award or of submitting the petition for rectification, as the case may be.

2. The rectification shall be issued by the arbitration tribunal in writing and shall be notified to both parties within fifteen days from the date of issuance. If the arbitration tribunal exceeds its power in rectification, the decision of the tribunal may be nullified by an action for nullification subject to the provisions of Articles 50 and 51 of this Law.

Article 48

1. Each arbitration party may, even upon expiry of the time limit for arbitration, petition, within thirty days following the date of receipt of the arbitration award, the arbitration tribunal to make an additional award as to claims presented in the arbitration proceedings but omitted from the award. The other party shall be notified of such petitions on his address indicated in the arbitration award prior to its submission to the arbitration tribunal.

2. The arbitration tribunal shall issue its award within sixty days from the petition submission date, and it may, if it deems it necessary, extend such period for an additional thirty days.

Nullification of Arbitration Award

Article 49

Arbitration awards rendered in accordance with the provisions of this Law are not subject to appeal, except for an action to nullify an arbitration award filed in accordance with the provisions of this Law.

Article 50

1. An action to nullify an arbitration award shall not be admitted except in the following cases:

a. If no arbitration agreement exists, or if such agreement is void, voidable, or terminated due to expiry of its term;

b. If either party, at the time of concluding the arbitration agreement, lacks legal capacity, pursuant to the law governing his capacity;

c. If either arbitration party fails to present his defense due to lack of proper notification of the appointment of an arbitrator or of the arbitration proceedings or for any other reason beyond his control;

d. If the arbitration award excludes the application of any rules which the parties to arbitration agree to apply to the subject matter of the dispute;

e. If the composition of the arbitration tribunal or the appointment of the arbitrators is carried out in a manner violating this Law or the agreement of the parties;

f. If the arbitration award rules on matters not included in the arbitration agreement. Nevertheless, if parts of the award relating to matters subject to arbitration can be separated from those not subject thereto, then nullification shall apply only to parts not subject to arbitration.

g. If the arbitration tribunal fails to observe conditions required for the award in a manner affecting its substance, or if the award is based on void arbitration proceedings that affect it.

2. The competent court considering the nullification action shall, on its own initiative, nullify the award if it violates the provisions of Sharia and public policy in the Kingdom or the agreement of the arbitration parties, or if the subject matter of the dispute cannot be referred to arbitration under this Law.

3. The arbitration agreement shall not terminate with the issuance of the competent court decision nullifying the arbitration award unless the arbitration parties agree thereon or a decision nullifying the arbitration agreement is issued.

4. The competent court shall consider the action for nullification in cases referred to in this Article without inspecting the facts and subject matter of the dispute.


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