In the Kingdom of Saudi Arabia, alternative dispute resolution is evolving as an alternative to filing a formal dispute with either the Saudi courts or the quasi-judicial committees that have traditionally adjudicated disputes.  

Saudi Judicial System

In the Kingdom of Saudi Arabia, the judicial system is comprised of courts which rule based upon Shari’a law; the Board of Grievances; and assorted committees dedicated to a particular specialty.  Unless stated otherwise, the Shari’a courts hear and decide all civil controversies.  However, for foreign business interests, specialized committees may be the forum for dispute resolution, such as the Committee for the Settlement of Banking Disputes.

In 2007, the King instituted sweep reforms of the judicial system; this restructuring of both the courts and the form of alternative dispute resolution is still in the process of being implemented.  

Foreign investors and international clients may have more background in dealing with other forms of alternative dispute resolution, such as court-ordered mediation, than may be available in Saudi Arabia today.   However, Saudi Arabia does offer a variety of methods to resolve business disputes outside of entering the judicial system formally.

Arbitration, Settlement Negotiations

Arbitration is an acceptable form of dispute resolution in Saudi Arabia and a growing number of international businesses are welcoming the 2012 New Arbitration Law with its changes to the arbitration process that make Saudi international arbitrations more efficient and effective in time and expense.  

Alsabhan & Alajaji Pinsent Masons LLC lawyers have experience both in the New Arbitration Law processes as well as dispute resolutions in Saudi Arabia that must involve commercial litigation in Saudi’s judicial system.  Settlements arising out of contract negotiations are also a viable form of resolving conflicts which Alsabhan & Alajaji Pinsent Masons LLC attorneys have negotiated successfully for their clients over the years.  

Finally, to the extent necessary, Alsabhan & Alajaji Pinsent Masons LLC is able to represent clients in the resolution of disputes before the General Saudi Courts, as well as the Grievances Board and other formal bodies, such as the Banking Dispute Settlement Committee.

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