Wednesday, June 26, 2013
Since the enactment of Saudi Arabia’s new Arbitration Law in July 2012, more foreign investors have opted for arbitration in Saudi Arabia rather than in foreign forums. By simplifying dispute resolution and streamlining the enforcement of arbitral awards, the Arbitration Law has sought to bring the protection of foreign investors up to international standards. The Arbitration Law, largely modeled on the United Nations Commission on International Trade Law (UNCITRAL) Model Law, has modernized Saudi Arabia’s dispute resolution mechanism and sought to remove much of the unpredictability involved in bringing arbitral awards before the Saudi Arabian Board of Grievances for enforcement.
However, despite these reforms, some issues remain, leaving a degree of uncertainty as to whether an arbitral award will be enforceable. For an overview of these risks, and an analysis as to available risk mitigation options, please see our Kluwer Arbitration Blog post.