Saudi Arabian Council of Ministers issues resolution to develop arbitration in the Kingdom

In June 2025, the Saudi Arabian Council of Ministers issued a Resolution on developing the Saudi Arabian arbitration and alternative dispute resolution ecosystem (the "Resolution").

The Resolution contains a number of initiatives aimed at positioning Saudi Arabia as a leading centre for arbitration and to foster the highest standards in international best practice.

Key initiatives include:

A review of the Saudi Arabian Arbitration Law (Royal Decree No. M/34 dated 24/05/1433 AH (corresponding to 16/04/2012)) and its Implementing Regulations to be undertaken by the Saudi National Competitiveness Centre and other stakeholders, including the SCCA, the Ministry of Commerce, the Ministry of Investment and Ministry of Justice.  The aim of the review is to identify and propose any reforms necessary to reinforce the legislation governing arbitration proceedings.

A directive to translate and publish selected court judgments relating to arbitration in order to increase transparency about the court's approach to arbitration and enhance consistency as to judicial interpretation of the Arbitration Law.

A requirement for arbitral institutions with a presence in Saudi Arabia to promote and develop arbitration practice.  They will be encouraged to:

• promote and develop arbitration in the Kingdom by holding events furthering arbitration practices in Saudi Arabia;
• provide arbitration and ADR training to raise awareness among legal practitioners in Saudi Arabia; and
• publish guidelines for drafting arbitration agreements.

A study of international perceptions of arbitration practice in Saudi Arabia, in particular the quality of arbitration proceedings and outcomes.  Saudi universities are also encouraged to undertake studies of arbitration and publish their findings.

An initiative aimed at greater technological integration between governmental entities and arbitration institutions in order to provide access to government e-services and enhance case administration.

The Resolution reaffirms Saudi Arabia's ambition to become a leading regional arbitration hub.  Following the enactment of the Arbitration Law in 2012, the creation of the SCCA in 2014, and the SCCA's adoption of revised rules in 2023, the development of arbitration in Saudi Arabia shows no signs of slowing down.

At the same time, the Saudi courts seem to be taking an increasingly pro-enforcement stance.  Indeed, we understand that between 2021 and 2024, the Saudi courts dealt with more than 4,000 set aside applications, but over 90% of those applications were refused and the respective awards were confirmed.

Together, this should be encouraging for international parties looking to invest in Saudi Arabia, and will help further to address historic concerns about the challenges of arbitrating and enforcing awards in the Kingdom.