Streamlining Construction Dispute Resolution: The New SCCA Arbitration Rules in Saudi Arabia

With giga-projects at the forefront of its construction industry, the eyes of international contractors and foreign investors alike are on the Kingdom of Saudi Arabia ("KSA"). But as with all construction projects of significant scale and complexity, disputes are unavoidable. With the introduction of the new arbitration rules of the Saudi Center for Commercial Arbitration ("SCCA"), resolving construction disputes in the KSA by way of SCCA arbitration is set to become the norm. Indeed, the SCCA arbitration rules include several features that make arbitrating construction disputes in the KSA an increasingly popular choice. Notable features include joinder provisions (Article 12), allowing for the inclusion of multiple parties in disputes, and early disposition of claims or defenses (Article 26), facilitating resolution of common preliminary issues. Additionally, the rules promote the use of technology to minimize environmental impact (Article 25(2)) and encourage settlement through any form of amicable dispute resolution (Article 25(7)). These features underscore the SCCA's commitment to efficient and effective dispute resolution in KSA's burgeoning construction industry.

This article was first published on Kluwer Arbitration Blog, please visit here.

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