Saudi Minister of Justice Walid bin Mohammed Al-Samaani affirmed that the series of legislative and procedural developments witnessed by the Kingdom in recent years have directly contributed to consolidating the position of arbitration and alternative dispute resolution methods, making them effective and reliable options within the Saudi justice system. His remarks came during his participation in the Fifth International Conference on Commercial Arbitration, highlighting the Kingdom's commitment to enhancing its investment environment.
A strategic vision to enhance legal certainty
During his address at a dialogue session titled “National Strategy and Global Confidence,” Al-Samaani explained that the integration of legal and judicial processes with financial and trade policies has resulted in a stable and attractive investment environment. He emphasized that the clarity of regulations and the effectiveness of the judicial system in supporting arbitration and enforcing its rulings are fundamental pillars for enhancing legal certainty and the confidence of local and international investors. He noted that the system for enforcing arbitration rulings recorded remarkable growth of 43% last year, with commercial arbitration constituting half of these rulings, reflecting the business sector’s increasing confidence in this judicial avenue.
Historical background and ongoing efforts
These developments are part of a long-term reform process aimed at modernizing the Kingdom’s legal environment in line with the goals of Saudi Vision 2030. The issuance of the new Arbitration Law in 2012 marked a pivotal turning point, as it drew its provisions from the UNCITRAL Model Law on International Commercial Arbitration, thus aligning it with global best practices. This was followed by the establishment of the Saudi Center for Commercial Arbitration (SCCA) in 2014, providing a specialized and independent institutional platform for managing arbitration proceedings, adding a new layer of credibility and professionalism.
Local and international economic impact
Domestically, strengthening arbitration helps alleviate the burden on public courts and expedites the resolution of commercial disputes, saving businesses, especially small and medium-sized enterprises (SMEs), time and costs. Internationally, a robust and effective arbitration framework is crucial for attracting foreign direct investment. International investors seek legal environments that provide a neutral and reliable mechanism for resolving any disputes that may arise, something the Kingdom is steadily working to offer. These efforts not only attract capital but also enhance the Kingdom's ranking in global competitiveness and ease of doing business indices.
Towards preventive justice and a sustainable business environment
In closing, Minister Al-Samaani affirmed that the Ministry of Justice is committed to expanding the implementation of the "Preventive Justice" system, which aims to reduce disputes by electronically documenting contracts in a way that ensures clarity of rights and obligations. He noted that more than one million electronic contracts have been documented, benefiting over 1.2 million people, reflecting the growing demand for these tools that support contractual stability and create a safer and more sustainable business environment.
