SCCA Arbitration in Saudi Arabia: A Practical Guide for International Companies.

The Saudi Centre for Commercial Arbitration (SCCA) — established in 2014 and operational since 2016 — has rapidly become the institutional arbitration forum of choice for commercial disputes in Saudi Arabia. For international companies contracting in the Kingdom, understanding SCCA arbitration is essential — because the alternative (Saudi Commercial Court litigation) presents significant challenges including Arabic-only proceedings, limited appeals, and outcomes that international parties may find unpredictable.

**Why SCCA Arbitration**

Three factors have driven SCCA adoption: the Saudi Arbitration Law (2012) based on the UNCITRAL Model Law, the SCCA Arbitration Rules (2023 edition) based on UNCITRAL Rules with Saudi modifications, and Saudi Arabia's accession to the New York Convention in 1994 — making SCCA awards enforceable in 172 countries.

**Drafting the SCCA Clause**

The SCCA model arbitration clause should be adapted for international contracts. Key elements include: specifying the number of arbitrators (one or three), the seat of arbitration (typically Riyadh), the language of proceedings (English, Arabic, or bilingual), and the governing law (typically Saudi law for Saudi-performed contracts).

**Key Practical Considerations**

Language: For international disputes, bilingual proceedings are common but add cost. If the underlying contract is in English, specifying English as the arbitration language is advisable. Seat vs. Venue: The seat determines procedural law and supervisory courts. Riyadh is the most common seat, but hearings can be held elsewhere. Timeline and Costs: Standard SCCA arbitration completes in 12-18 months. Expedited procedure targets 6 months for disputes below SAR 4 million. SCCA fees are 15-30% lower than ICC.

**SCCA vs. ICC for Saudi Disputes**

SCCA advantages include local institutional support, lower costs, and perception benefits with Saudi counterparties. ICC advantages include established reputation, larger arbitrator panel, and perceived neutrality. For contracts with Saudi counterparties, SCCA is increasingly the better choice.

**Award Enforcement**

SCCA awards are enforceable through the Saudi Enforcement Court and internationally under the New York Convention. Saudi public policy challenges have narrowed, but awards conflicting with Sharia principles (particularly regarding interest/riba) remain vulnerable.

**Construction Disputes at SCCA**

Construction disputes represent a significant SCCA caseload — delay and disruption claims, variation disputes, payment disputes, performance bond disputes, and termination disputes under government contracts.

GSDA's dispute resolution practice represents international contractors, developers, and investors in SCCA arbitration. Our trilingual team handles Arabic-English procedural requirements with construction industry expertise.