In this Law, the following terms shall have the meanings assigned thereto, unless the context requires otherwise:

• 1. Arbitration Agreement: 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 otherwise. 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.

Without prejudice to the provisions of Sharia and international conventions to which the Kingdom is 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 shall be subject to the provisions of this Law.

The provisions of this Law shall not apply to family-related disputes or to matters not subject to reconciliation.

Under this Law, arbitration shall be international if the dispute is related to international commerce, in the following cases:

• 1. If the head office of the parties to an arbitration agreement is located 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 head office of the two parties to arbitration is located 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 arising from 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.

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 said procedure. A third party in this respect includes any individual, tribunal, organization, or arbitration center within the Kingdom or abroad.

If both parties to arbitration agree to subject the relationship between them to the provisions of any document (model contract, international convention, etc.), the provisions of such document, including those related to arbitration, shall apply, provided that this is not in conflict with the provisions of Sharia.

1. Unless otherwise agreed upon by the parties to arbitration regarding notifications, a 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, 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 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.

If a party to arbitration proceeds with arbitration procedures knowing that a violation of a provision of this Law, which 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 30 days from his knowledge of the violation in the absence of an agreement, this shall be deemed a waiver of said party’s right to object.

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.