Arbitration system
Chapter One: General Provisions
Article 1:
The following terms used in this Law shall have the meanings shown opposite them, unless the context requires otherwise:
1 - Arbitration Agreement: An agreement between two or more parties to refer to arbitration all or some of the specific disputes that have arisen or may arise between them in connection with a specific legal relationship, whether contractual or non-contractual, whether the arbitration agreement is in the form of an arbitration clause contained in a contract or in the form of an independent arbitration agreement.
2 - Arbitration Tribunal: The sole arbitrator or team of arbitrators who decides the dispute referred to arbitration.
3 - Competent Court: The court with jurisdiction under the law to decide disputes that have been agreed to arbitrate.
Article 2:
Without prejudice to the provisions of Islamic Sharia and the provisions of international agreements to which the Kingdom is a party, the provisions of this Law shall apply to all arbitrations, regardless of the nature of the legal relationship surrounding the dispute, if such arbitration takes place in the Kingdom, or if it is an international commercial arbitration conducted abroad, and both parties agree to subject it to the provisions of this Law. The provisions of this Law shall not apply to disputes related to personal status and matters in which reconciliation is not permitted.
Article 3:
Arbitration shall be international under the provisions of this Law if its subject matter is a dispute relating to international trade, in the following cases:
1 - If the principal place of business of each of the parties to the arbitration is located in more than one country at the time of concluding the arbitration agreement, then if one of the parties has several business places, the place most closely connected with the subject matter of the dispute shall prevail. If one or both of the parties to the arbitration do not have a specific business place, the place of their usual residence shall prevail.
2 - If the principal place of business of each of the parties to the arbitration is located in the same country at the time of concluding the arbitration agreement, and one of the following places is located outside that country:
A - The place of arbitration as designated by the arbitration agreement, or as indicated in the manner of its designation.
B - The place of performance of a substantial part of the obligations arising from the commercial relationship between the parties.
C - The place most closely connected with the subject matter of the dispute.
3 - If the two parties to the arbitration agree to resort to an organization, a permanent arbitration body, or an arbitration center headquartered outside the Kingdom.
4 - If the subject of the dispute covered by the arbitration agreement relates to more than one country.
Article 4:
In cases where this system allows the two parties to arbitration to choose the procedure to be followed in a particular matter, this guarantees their right to authorize a third party to choose this procedure. In this regard, a third party is considered to be any individual, body, organization, or arbitration center in the Kingdom of Saudi Arabia or abroad.
Article 5:
If the two parties to arbitration agree to subject the relationship between them to the provisions of any document (model contract, international agreement, or other), the provisions of this document must be implemented, including the provisions related to arbitration, provided that they do not conflict with the provisions of Islamic Sharia.
Article 6:
1 - If there is no special agreement between the two parties to the arbitration regarding notifications, the notification shall be delivered to the addressee personally - or to his representative - or sent to his postal address specified in the contract subject to the dispute, or specified in the arbitration agreement, or in the document regulating the relationship covered by the arbitration.
2 - If it is not possible to deliver the notification to the addressee in accordance with paragraph (1), delivery shall be deemed to have taken place if the notification is by registered letter to the last known place of business, habitual residence, or postal address of the addressee.
3 - The provisions of this Article shall not apply to judicial notifications regarding the invalidity of the arbitration award before the courts.
Article 7:
If one of the parties to the arbitration continues the arbitration proceedings - knowing that a violation of a provision of this system that may be agreed to be violated or of a condition in the arbitration agreement has occurred - and does not submit an objection to this violation within the agreed period, or within thirty days of his knowledge of the violation in the absence of an agreement, this shall be deemed a waiver of his right to object.
Article 8:
1- Jurisdiction to hear a claim to invalidate an arbitration award and matters referred by this Law to the competent court shall be vested in the Court of Appeal originally competent to hear the dispute.
2- If the arbitration is an international commercial arbitration, whether conducted in the Kingdom or abroad, jurisdiction shall be vested in the Court of Appeal originally competent to hear the dispute in the city of Riyadh, unless the parties to the arbitration agree to another Court of Appeal in the Kingdom.
Chapter Two: Arbitration Agreement
Article 9:
1. The arbitration agreement may be entered into prior to the dispute, whether it is independent or contained in a specific contract. The arbitration agreement may also be entered into subsequent to the dispute, even if a lawsuit has been filed in this regard before the competent court. In this case, the agreement must specify the issues covered by arbitration, otherwise it shall be null and void.
2. The arbitration agreement must be in writing, otherwise it shall be null and void.
3. An arbitration agreement shall be considered written if it is contained in a document issued by the parties to the arbitration, or if it is contained in an exchange of authenticated correspondence, telegrams, or other electronic or written means of communication. A reference in a contract to a document containing an arbitration clause shall be deemed an arbitration agreement. Any reference in the contract to the provisions of a model contract, an international agreement, or any other document containing an arbitration clause shall also be deemed a written arbitration agreement if the reference clearly indicates that this clause is part of the contract.
Article 10:
1- Arbitration may only be agreed upon by those who have the authority to dispose of their rights, whether a natural person, their representative, or a legal entity.
2- Government agencies may not agree upon arbitration except with the approval of the Prime Minister, unless a special legal provision permits it.
Article 11:
1- The court before which a dispute is brought for which there is an arbitration agreement must rule that the case is inadmissible if the defendant raises this objection before any request or defense in the case.
2- Filing the case referred to in the previous paragraph shall not prevent the commencement or continuation of arbitration proceedings, or the issuance of an arbitration award.
Article 12:
Taking into account what is stated in paragraph (1) of Article (Nine) of this system, if an agreement is reached on arbitration during the consideration of the dispute before the competent court, it must decide to refer the dispute to arbitration.
Chapter Three: The Arbitration Panel
Article 13:
The arbitration panel shall consist of one or more arbitrators, provided that the number is odd, otherwise the arbitration shall be invalid.
Article 14:
The following conditions must be met by the arbitrator:
1. He must be fully competent.
2. He must be of good character and conduct.
3. He must hold at least a university degree in Sharia or legal sciences. If the arbitration panel consists of more than one arbitrator, this condition shall suffice for its chairman.
Article 15:
1- The two parties to arbitration may agree on the selection of arbitrators. If they do not agree, the following shall be followed:
A - If the arbitration panel is composed of a single arbitrator, the competent court shall undertake his selection.
B - If the arbitration panel is composed of three arbitrators, each party shall appoint an arbitrator, and the two arbitrators shall then agree on the selection of the third arbitrator. If either party fails to appoint its arbitrator within fifteen days of receiving a request from the other party, or if the two appointed arbitrators fail to agree on the selection of the third arbitrator within fifteen days of the date of appointment of the last of them, the competent court shall undertake his selection based on a request from the party concerned with expediting the process, within fifteen days from the date of submission of the request. The arbitrator chosen by the two appointed arbitrators, or chosen by the competent court, shall preside over the arbitration panel. These provisions shall apply in the event that the arbitration panel is composed of more than three arbitrators.
2 - If the two parties to the arbitration do not agree on the procedures for selecting arbitrators, or one of the parties violates them, or the two appointed arbitrators do not agree on a matter that they must agree upon, or if a third party fails to perform what was entrusted to him in this regard, the competent court - upon the request of the person concerned with expediting the procedure or the required work - shall undertake the procedure or the required work, unless the agreement stipulates another method for completing this procedure or work.
3 - The competent court shall take into account the conditions stipulated in the agreement of the two parties and those conditions required by this law in the arbitrator it selects, and shall issue its decision on the selection of the arbitrator within thirty days from the date of submission of the request.
4 - Without prejudice to the provisions of Articles (Forty-Nine) and (Fifty) of this law, the decision of the competent court appointing the arbitrator in accordance with paragraphs (1 and 2) of this article shall not be subject to independent appeal by any means of appeal.
Article 16:
1- The arbitrator shall have no interest in the dispute and, from the time of his appointment and throughout the arbitration proceedings, shall disclose in writing to the two parties to the arbitration all circumstances that may raise justifiable doubts as to his impartiality and independence, unless he has previously informed them of them.
2- The arbitrator shall be prohibited from considering and hearing the case, even if neither party to the arbitration requests it, in the same cases in which a judge is prohibited.
3- The arbitrator may not be challenged unless circumstances arise that raise serious doubts as to his impartiality or independence, or if he does not possess the qualifications agreed upon by the two parties to the arbitration, without prejudice to the provisions of Article Fourteen of these Rules. 4- Neither party to the arbitration may request the challenge of the arbitrator he appointed or in whose appointment he participated except for reasons that become clear after the appointment of such arbitrator.
Article 17:
1- If there is no agreement between the two parties to the arbitration on the procedures for challenging an arbitrator, the challenge request shall be submitted in writing to the arbitral tribunal, stating the reasons for the challenge within five days from the date the challenger becomes aware of the formation of the tribunal or the circumstances justifying the challenge. If the challenged arbitrator does not withdraw, or the other party does not agree to the challenge request within five days from the date of its submission, the arbitral tribunal shall decide on the matter within fifteen days from the date of its receipt. If the challenger's request is rejected, he may submit it to the competent court within thirty days, and its ruling shall not be subject to appeal by any means.
2- A challenge request shall not be accepted from a person who has previously submitted a request to challenge the same arbitrator in the same arbitration, for the same reasons.
3- Submitting a challenge request to the arbitral tribunal shall result in the suspension of the arbitration proceedings, and an appeal against the arbitral tribunal's ruling rejecting the challenge request shall not result in the suspension of the arbitration proceedings.
4- If the arbitrator is dismissed - whether by the arbitration panel or by the competent court when considering the appeal - this results in the arbitration procedures that have been carried out - including the arbitration award - being considered as if it had not existed.
Article 18:
1- If the arbitrator is unable to perform his task, or does not perform it, or is interrupted in performing it in a way that leads to an undue delay in the arbitration proceedings, and does not withdraw, and the two parties to the arbitration do not agree to his dismissal, the competent court may dismiss him upon the request of either party, by a decision that is not subject to appeal by any means.
2- Unless the arbitrator is appointed by the competent court, he may not be dismissed except by agreement of the two parties to the arbitration, without prejudice to what is stated in paragraph (1) of this article, and the dismissed person may claim compensation if the dismissal did not occur due to his cause.
Article 19:
If the arbitrator’s mission ends due to his death, dismissal, removal, resignation, incapacity, or any other reason, a replacement must be appointed in accordance with the procedures followed in selecting the arbitrator whose mission has ended.
Article 20:
1- The arbitral tribunal shall decide on pleas related to its lack of jurisdiction, including pleas based on the absence of an arbitration agreement, its lapse, invalidity, or its failure to cover the subject matter of the dispute.
2- Pleas of lack of jurisdiction of the arbitral tribunal must be raised within the time limits referred to in paragraph (2) of Article (Thirty) of these rules.
The appointment of an arbitrator by either party to the arbitration or participation in his appointment shall not result in the forfeit of his right to raise any of these pleas. The plea that the arbitration agreement does not cover issues raised by the other party during the consideration of the dispute must be raised immediately, otherwise the right to raise it shall be forfeited. In all cases, the arbitral tribunal may accept a late plea if it deems the delay to be for an acceptable reason.
3- The arbitral tribunal shall decide on the pleas referred to in paragraph (1) of this article before deciding on the subject matter, and it may join them to the subject matter to decide on them together. If it rules to reject the plea, it may only be appealed by filing a lawsuit to annul the arbitral award that ends the entire dispute, in accordance with Article (Fifty-Four) of these rules.
Article 21:
An arbitration clause in a contract is an agreement independent of the other terms of the contract. The invalidity, rescission, or termination of a contract containing an arbitration clause does not invalidate the arbitration clause it contains if that clause is valid in itself.
Article 22:
1- The competent court may order interim or precautionary measures upon the request of one of the parties to the arbitration before the commencement of the arbitration proceedings or upon the request of the arbitral tribunal during the arbitration proceedings. These measures may be revoked in the same manner, unless the parties to the arbitration agree otherwise.
2- The competent court may, upon the request of the arbitral tribunal, order judicial representation.
3- The arbitral tribunal may request the relevant party to assist it in the arbitration proceedings as it deems appropriate for the proper conduct of the arbitration, such as summoning a witness or expert, ordering the submission of a document, a copy thereof, or reviewing it, or otherwise, without prejudice to the arbitral tribunal's right to do so independently.
Article 23:
1- The two parties to the arbitration may agree that the arbitral tribunal, upon the request of either party, may order either party to take any interim or precautionary measures it deems necessary due to the nature of the dispute. The arbitral tribunal may require the party requesting such measures to provide an appropriate financial guarantee to implement this measure.
2- If the party against whom the order was issued fails to implement it, the arbitral tribunal may, upon the request of the other party, authorize that party to take the necessary measures to implement it, without prejudice to the right of the tribunal or the other party to request the competent authority to instruct the party against whom the order was issued to implement it.
Article 24:
1- When selecting an arbitrator, an independent contract must be concluded with him specifying his fees, and a copy of the contract must be deposited with the entity specified in the executive regulations of this system.
2- If the two parties to the arbitration do not agree on determining the arbitrators' fees, they shall be determined by the competent court, which must decide on them by a decision that is not subject to appeal by any means. If the arbitrators are appointed by the competent court, their fees must be determined accordingly.
Chapter Four: Arbitration Procedures
Article 25:
1- The two parties to the arbitration may agree on the procedures to be followed by the arbitration panel, including their right to subject these procedures to the rules in force in any organization, body, or arbitration centre inside or outside the Kingdom, provided that they do not conflict with the provisions of Islamic Sharia.
2- If there is no such agreement, the arbitration panel may, subject to the provisions of Islamic Sharia and the provisions of this Law, choose the arbitration procedures it deems appropriate.
Article 26:
Arbitration proceedings shall commence on the day on which one party to the arbitration receives the request for arbitration from the other party, unless the parties to the arbitration agree otherwise.
Article 27:
The parties to the arbitration shall be treated equally, and each party shall be given a full and equal opportunity to present its claim or defense.
Article Twenty-Eight:
The two parties to the arbitration may agree on the place of arbitration within the Kingdom or outside it. If there is no agreement, the arbitration panel shall designate the place of arbitration, taking into account the circumstances of the case and the suitability of the place for both parties. This shall not prejudice the authority of the arbitration panel to meet in any place it deems appropriate for deliberation among its members, to hear the statements of witnesses, experts, or the two parties to the dispute, or to inspect the subject of the dispute, or to examine or review documents.
Article 29:
1- The arbitration shall be conducted in Arabic unless the arbitral tribunal decides or the parties to the arbitration agree on another language or languages. The agreement or decision shall apply to the language of written statements and memoranda, oral pleadings, as well as to every decision taken by the arbitral tribunal, any communication sent by it, or any award issued by it, unless the agreement of the parties or the decision of the arbitral tribunal provides otherwise.
2- The arbitral tribunal may decide that all or some of the written documents submitted in the case shall be accompanied by a translation into the language or languages used in the arbitration. In the event of multiple languages, the tribunal may limit the translation to some of them.
Article 30:
1. Within the period agreed upon by the two parties, or determined by the arbitral tribunal, the claimant shall send to the respondent and each of the arbitrators a written statement of his claim, including his name and address, the name and address of the respondent, an explanation of the facts of the case, his requests, his grounds, and any other matter that the agreement of the two parties requires to be included in this statement.
2. Within the period agreed upon by the two parties, or determined by the arbitral tribunal, the respondent shall send to the claimant and each of the arbitrators a written response to the contents of the statement of claim. He may include in his response any request related to the subject of the dispute, or assert a right arising therefrom with the intention of pleading set-off, and he may do so even at a later stage of the proceedings if the arbitral tribunal considers that the circumstances justify the delay.
3. Each party may attach to the statement of claim or its response, as the case may be, copies of the documents on which it relies, and may refer to all or some of the documents and evidence that he intends to submit. This does not prejudice the right of the arbitration panel, at any stage of the case, to request the submission of originals or copies of the documents or papers on which either party to the case relies.
Article 31:
A copy of any memoranda, documents or other papers submitted by one party to the arbitration panel shall be sent to the other party, and a copy of all expert reports, documents and other evidence submitted to the said panel that the arbitration panel may rely on in issuing its award shall also be sent to each party.
Article 32:
Either party to the arbitration may amend or supplement its claims or defences during the arbitration proceedings, unless the arbitral tribunal decides not to do so in order to prevent delaying the resolution of the dispute.
Article 33:
1- The arbitral tribunal shall hold pleading sessions to enable each party to explain the subject of the case and present its arguments and evidence. It may suffice with the submission of written memoranda and documents, unless the parties to the arbitration agree otherwise.
2- The parties to the arbitration shall be notified, at the addresses registered with the arbitral tribunal, of the date of any oral pleading session, the date of pronouncing the award, and any meeting of the arbitral tribunal for the purpose of inspecting the subject of the dispute, other property, or to examine documents, sufficiently in advance.
3- The arbitral tribunal shall record a summary of the proceedings in minutes signed by the witnesses or experts, the parties present, or their representatives, and the members of the arbitral tribunal. A copy thereof shall be delivered to each party, unless the parties to the arbitration agree otherwise.
Article 34:
1- If the claimant fails, without an acceptable excuse, to submit a written statement of his claim in accordance with paragraph (1) of Article (Thirty) of this system, the arbitration panel shall terminate the arbitration proceedings, unless the two parties to the arbitration agree otherwise.
2- If the defendant does not submit a written response to his defense in accordance with paragraph (2) of Article (Thirty) of this system, the arbitration panel shall continue the arbitration proceedings unless the two parties to the arbitration agree otherwise.
Article 25:
If either party fails to attend a session - after being notified - or to submit the requested documents, the arbitration panel may continue the arbitration proceedings and issue a ruling on the dispute based on the evidence before it.
Article 36:
1- The arbitration panel may appoint one or more experts to submit a written or oral report to be recorded in the minutes of the session on specific issues determined by it, and shall notify both parties thereof unless they agree otherwise.
2- Each party shall provide the expert with information related to the dispute and shall enable him to inspect and examine any documents, goods, or other property related to the dispute that he requests. The arbitration panel shall decide any dispute between the expert and either party in this regard by a decision that is not subject to appeal in any way.
3- The arbitration panel shall send a copy of the expert's report to each party upon its submission, giving them the opportunity to express their opinion thereon. Both parties have the right to review and examine the documents on which the expert based his report. The expert shall issue his final report after reviewing the statements made by the two parties to the arbitration.
4- After submitting the expert's report, the arbitration panel may decide, of its own motion or upon the request of either party to the arbitration, to hold a session to hear the expert's statements, while giving both parties the opportunity to hear and discuss the contents of his report.
Article 37:
If, during the arbitration proceedings, a matter is raised that falls outside the jurisdiction of the arbitral tribunal, or if a document submitted to it is challenged as being forged, or if criminal proceedings are initiated for its forgery or for another criminal act, the arbitral tribunal may continue to consider the subject of the dispute if it deems that a decision on this matter, or on the forgery of the document or the other criminal act, is not necessary for a decision on the subject of the dispute. Otherwise, it shall suspend the proceedings until a final judgment is issued in this regard, and this shall result in the suspension of the period specified for issuing the arbitration award.
Chapter Five: Procedures for resolving arbitration cases
Article 38:
1- Taking into account that it does not violate the provisions of Islamic Sharia and the public order in the Kingdom, the arbitration panel shall, while considering the dispute, do the following:
A - The rules agreed upon by the two parties to arbitration shall be applied to the subject matter of the dispute. If they agree to apply the system of a particular state, the substantive rules therein shall be followed, excluding the rules relating to conflict of laws, unless otherwise agreed.
B - If the two parties to arbitration do not agree on the applicable statutory rules to the subject matter of the dispute, the arbitral tribunal shall apply the substantive rules of the system it deems most closely related to the subject matter of the dispute.
C - When deciding the subject matter of the dispute, the arbitral tribunal must take into account the terms of the contract in dispute, the prevailing customs in the type of transaction, the prevailing practices, and the established practice between the two parties.
2 - If the two parties to the arbitration expressly agree to authorize the arbitration panel to make a settlement, it may rule on it in accordance with the rules of justice and fairness.
Article 39:
1- The award of the arbitration panel composed of more than one arbitrator shall be issued by a majority of its members after confidential deliberations.
2- If the opinions of the arbitration panel diverge and it is not possible to achieve a majority, the arbitration panel shall choose an arbitrator within (15) days from its decision that it is not possible to achieve a majority; otherwise, the competent court shall appoint an arbitrator.
3- Decisions on procedural matters may be issued by the arbitrator presiding over the panel if the two parties to the arbitration so state in writing, or if all members of the arbitration panel authorize him, unless the two parties to the arbitration agree otherwise.
4- If the arbitration panel is authorized to conciliate, the award shall be issued unanimously.
5- The arbitration panel may issue interim awards or awards on part of the claims, before issuing the award concluding the entire dispute, unless the two parties to the arbitration agree otherwise.
Article 40:
1- The arbitral tribunal shall issue the award concluding the entire dispute within the period agreed upon by the two parties to the arbitration. If there is no agreement, the award must be issued within twelve months from the date of commencement of the arbitration proceedings.
2- The arbitral tribunal may, in all cases, decide to extend the arbitration period, provided that such extension does not exceed six months, unless the two parties to the arbitration agree on a longer period.
3- If the arbitral award is not issued within the period referred to in the previous paragraph, either party to the arbitration may request the competent court to issue an order specifying an additional period, or to terminate the arbitration proceedings. Either party may then file its claim with the competent court.
4- If an arbitrator is appointed instead of an arbitrator in accordance with the provisions of this Law, the period specified for the award shall be extended by thirty days.
Article 41:
1- The arbitration procedures shall end with the issuance of the award ending the dispute, or with the issuance of a decision by the arbitration panel to end the procedures in the following cases:
A - If the two parties to the arbitration agree to terminate the arbitration.
B - If the claimant withdraws from the arbitration dispute, unless the arbitration panel decides, upon the request of the respondent, that he has a serious interest in continuing the proceedings until the dispute is resolved.
C - If the arbitration panel finds, for any other reason, that continuing the arbitration proceedings is futile or impossible.
D - An order is issued to terminate the arbitration proceedings in accordance with the provisions of paragraph (1) of Article (Thirty-Four) of this system.
2 - The arbitration proceedings shall not terminate upon the death or loss of capacity of one of the parties to the arbitration, unless the party with standing in the dispute agrees with the other party to terminate it. However, the period specified for arbitration shall be extended by thirty days, unless the arbitration panel decides to extend the period for a similar period, or the two parties to the arbitration agree otherwise.
3 - Subject to the provisions of Articles (Forty-Nine), (Fifty) and (Fifty-One) of this Law, the mandate of the arbitration panel shall terminate upon the conclusion of the arbitration proceedings.
Article 42:
1- The arbitration award shall be issued in writing, shall be reasoned, and signed by the arbitrators. If the arbitration panel is composed of more than one arbitrator, the signatures of the majority of the arbitrators shall suffice, provided that the reasons for the minority's failure to sign are recorded in the minutes of the case.
2- The arbitration award shall include the date of pronouncement and place of issuance, the names and addresses of the parties to the dispute, the names, addresses, nationalities, and capacities of the arbitrators, a summary of the arbitration agreement, a summary of the statements and requests of the two parties to the arbitration, their pleadings and documents, a summary of the expert report (if any), the operative part of the award, and a determination of the arbitrators' fees, arbitration expenses, and the manner of their distribution between the two parties. Without prejudice to the provisions of Article (Twenty-Four) of this Law.
Article 43:
1- The arbitration panel shall deliver to each of the arbitration parties a true copy of the arbitration award within fifteen days from the date of its issuance.
2- The arbitration award, or any part thereof, may not be published except with the written consent of the two arbitration parties.
Article 44:
The arbitration panel shall deposit the original award, or a signed copy thereof in the language in which it was issued, with the competent court within the period stipulated in paragraph (1) of Article (Forty-Three) of this system, along with a translation into Arabic certified by an accredited authority if it was issued in a foreign language.
Article 45:
If the two parties to the arbitration agree during the arbitration proceedings on a settlement that ends the dispute, they may request that the terms of the settlement be recorded before the arbitration panel, which must in this case issue an award containing the terms of the settlement and ending the proceedings. This award shall have the same force as arbitrators’ awards upon execution.
Article 46:
1- Either party to the arbitration may request the arbitral tribunal, within thirty days following receipt of the arbitral award, to interpret any ambiguity contained in its operative part. The party requesting the interpretation must notify the other party at the address specified in the arbitral award of this request before submitting it to the arbitral tribunal.
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The interpretation shall be issued in writing within thirty days following the date of submission of the request for interpretation to the arbitral tribunal. 3- The ruling issued for interpretation shall be deemed complementary to the arbitral award it interprets and its provisions shall apply to it.
Article 47:
1- The arbitration panel shall correct any purely material errors, whether written or arithmetical, in its award, by a decision it issues on its own initiative, or upon the request of one of the parties. The arbitration panel shall make the correction without pleading within fifteen days following the date of issuance of the award, or the filing of the correction request, as the case may be.
2- The correction decision shall be issued in writing by the arbitration panel and communicated to the two parties to the arbitration within fifteen days of its issuance. If the arbitration panel exceeds its authority in making the correction, it is permissible to assert the invalidity of this decision by a claim for invalidity to which the provisions of Articles (Fifty) and (Fifty-One) of these Regulations shall apply.
Article 48:
1- Either party to the arbitration may, even after the expiry of the arbitration period, request the arbitral tribunal, within thirty days following receipt of the arbitral award, to issue an additional arbitral award on claims submitted during the proceedings and omitted by the arbitral award. The other party must be notified of this request at the address shown in the arbitral award before submitting it to the arbitral tribunal.
2- The arbitral tribunal shall issue its award within sixty days from the date of submission of the request, and it may extend this period for another thirty days if it deems it necessary.
Chapter Six: Invalidity of the Arbitration Award
Article 49:
Arbitration awards issued in accordance with the provisions of this system shall not be subject to appeal by any means of appeal, except by filing a lawsuit to invalidate the arbitration award in accordance with the provisions set forth in this system.
Article 50:
1- A claim to invalidate an arbitration award shall not be accepted except in the following cases:
A - If there is no arbitration agreement, or if such agreement is void, voidable, or terminated upon expiration.
B - If one of the parties to the arbitration agreement was, at the time of its conclusion, legally incapable or partially incapacitated, in accordance with the law governing his legal capacity.
C - If one of the parties to the arbitration was unable to present his defense due to failure to properly notify him of the appointment of an arbitrator or of the arbitration procedures, or for any other reason beyond his control.
D - If the arbitral award excludes the application of any of the statutory rules that the parties to the arbitration have agreed to apply to the subject matter of the dispute.
E - If the arbitral tribunal was formed or the arbitrators were appointed in a manner contrary to these laws or to the agreement of the parties.
F - If the arbitral award decides on matters not covered by the arbitration agreement. However, if it is possible to separate the parts of the award relating to matters subject to arbitration from the parts relating to matters not subject to arbitration, then the nullity shall only apply to the parts not subject to arbitration.
Z - If the arbitration panel did not observe the conditions required for the award in a manner that affected its content, or if the award was based on invalid arbitration procedures that affected it.
2 - The competent court hearing the nullity claim shall, on its own initiative, declare the arbitration award null and void if it contains any matter that contravenes the provisions of Islamic Sharia and public order in the Kingdom, or what the parties to arbitration have agreed upon, or if it finds that the subject matter of the dispute is one of the matters that are not permissible for arbitration under this Law.
3 - The arbitration agreement shall not expire upon the issuance of a ruling by the competent court declaring the arbitration award null and void, unless the parties to arbitration have agreed to this, or a ruling is issued declaring the arbitration agreement null and void.
4 - The competent court shall consider the nullity claim in the cases referred to in this Article, without examining the facts and subject matter of the dispute.
Article 51:
1- A claim to nullify an arbitration award shall be filed by either party within sixty days following the date on which that party is notified of the award. The waiver by the party claiming nullity of the claim before the issuance of the arbitration award shall not preclude the claim from being accepted.
2- If the competent court rules to uphold the arbitration award, it must order its execution, and its ruling in this regard shall not be subject to appeal by any means. However, if it rules to nullify the arbitration award, its ruling shall be subject to appeal within thirty days from the day following the notification.
Chapter Seven: The binding force and enforcement of arbitrators’ awards
Article 52:
Subject to the provisions stipulated in this system, the arbitration award issued in accordance with this system shall have the force of res judicata and shall be enforceable.
Article 53:
The competent court or its delegate shall issue an order to enforce the arbitrators' award. The application for enforcement of the award shall be submitted along with the following:
1 - The original award or a certified copy thereof.
2 - A true copy of the arbitration agreement.
3 - A translation of the arbitration award into Arabic, certified by an accredited authority, if it was issued in another language.
4 - Evidence that the award has been deposited with the competent court in accordance with Article (Forty-Four) of this Law.
Article 54:
Filing a claim for annulment does not suspend the enforcement of the arbitration award. However, the competent court may order a stay of enforcement if the party claiming the annulment requests it in the statement of claim, and the request is based on serious grounds. The competent court must decide on the request for a stay of enforcement within fifteen days from the date of filing the request. If it orders a stay of enforcement, it may order the provision of a bond or financial guarantee. If it orders a stay of enforcement, it must decide on the annulment claim within one hundred and eighty days from the date of issuance of that order.
Article 55:
1- A request to enforce an arbitration award shall not be accepted unless the period for filing a lawsuit to annul the award has expired.
2- An order to enforce an arbitration award in accordance with this system may not be issued except after verifying the following:
A - It does not conflict with a judgment or decision issued by a court, committee, or body with jurisdiction to adjudicate the subject matter of the dispute in the Kingdom of Saudi Arabia.
B - It does not include anything that contravenes the provisions of Islamic Sharia and public order in the Kingdom. If it is possible to divide the judgment into parts with regard to the contravention it contains, it is permissible to order the implementation of the remaining part that does not contravene.
C - The convicted person has been duly notified.
3 - It is not permissible to appeal against the order issued to implement the arbitration award. However, an order issued to refuse implementation may be appealed against to the competent authority within thirty days from the date of its issuance.
Chapter Eight: Final Provisions
Article56:
The Council of Ministers shall issue the executive regulations for this system.
Article 57:
This system replaces the Arbitration System issued by Royal Decree No. (M/46) dated 7/12/1403 AH.
Article 58:
This system shall come into effect thirty days after the date of its publication in the Official Gazette.