As part of the Kingdom of Saudi Arabia’s ongoing judicial development under Vision 2030, the Ministry of Justice has released the 2025 Draft Arbitration Law, representing a major milestone in modernizing commercial and civil arbitration both within the Kingdom and internationally.
This draft aims to strengthen Saudi Arabia’s position as a regional legal and investment hub—capable of attracting global companies through a fair, flexible, and trusted dispute-resolution environment.
The existing Arbitration Law issued in 2012 is relatively modern and has played a significant role in reducing commercial disputes before the courts and redirecting them to specialized arbitral tribunals.
However, with the expansion of foreign investment and the increase in cross-border disputes, the need emerged for a more comprehensive and internationally aligned system that enhances efficiency, transparency, and procedural clarity.
Accordingly, the Ministry of Justice introduced the new draft to gather expert feedback ahead of its anticipated approval in 2025.
The draft introduces several provisions designed to improve the effectiveness of arbitration, ensure fairness, and expedite dispute resolution. The most notable features include:
The draft grants arbitrators broader authority to manage proceedings without administrative interference, enhancing efficiency and strengthening party confidence in the process.
Digital arbitration is formally recognized, enabling virtual hearings and the electronic exchange of documents.
This modern approach reduces timelines and procedural burdens, making arbitration more accessible and cost-effective.
The draft enhances the enforceability of foreign arbitral awards in alignment with the New York Convention, simplifying recognition and enforcement procedures within the Kingdom.
Parties may select any arbitral rules or centers—whether local or international—to govern their disputes, reflecting Saudi Arabia’s openness to global arbitration best practices.
The draft clearly defines the grounds for annulling an arbitral award, preventing misuse of procedural objections as a tactic to delay enforcement.
The new draft is a strategic step toward enhancing the Kingdom’s investment climate by:
Ensuring faster resolution of commercial disputes
Reducing litigation costs
Protecting both local and foreign investors from lengthy procedures
Positioning Saudi Arabia as a regional hub for commercial arbitration
This move supports the national direction to make arbitration an effective, modern, and internationally aligned dispute-resolution mechanism.
With the release of the new draft, the role of Saudi law firms becomes increasingly vital in guiding clients through these developments by:
Representing parties before local and international arbitral tribunals
Drafting arbitration clauses in commercial and investment agreements
Reviewing arbitration procedures to ensure compliance with the new law
Providing preventive legal advice before disputes arise
At AL Zamil & AL Hudaithi Law Firm, our specialized arbitration team assists companies and investors in understanding and applying the new framework to safeguard their interests and achieve efficient dispute resolution.
The new Arbitration Law draft is expected to reinforce the Kingdom’s position as a reliable legal destination and a leading regional hub for commercial arbitration.
Supported by strong institutional backing from the Ministry of Justice, the Expert Panel, and the Saudi Center for Commercial Arbitration, the draft aims not only to resolve disputes effectively—but also to promote transparency and secure contracting practices aligned with Saudi Arabia’s ambitious economic transformation.