Arbitration Submission Agreement Template for Saudi Arabia

When you need to resolve a business dispute through arbitration in Saudi Arabia but lack an existing arbitration clause in your contract, an Arbitration Submission Agreement becomes essential. This document creates the legal framework for parties to voluntarily submit their dispute to arbitration rather than pursuing litigation through Saudi courts. Under Saudi Arabian law, this agreement must comply with both the Saudi Arbitration Law (Royal Decree No. M/34) and fundamental Sharia principles that underpin the Kingdom's legal system.

When do you need this document?

You need an Arbitration Submission Agreement when disputes arise between commercial parties who want to avoid court proceedings but didn't include arbitration clauses in their original contracts. This situation commonly occurs in joint venture disagreements, construction project disputes, supply chain conflicts, and international trade disagreements involving Saudi entities. The document is particularly valuable for foreign companies operating in Saudi Arabia who prefer arbitration's procedural flexibility and confidentiality. Government entities and state-owned enterprises also use these agreements when resolving commercial disputes with private companies, as arbitration can provide faster resolution than traditional court processes.

Key legal considerations

Your arbitration submission agreement must clearly define the scope of disputes covered and specify whether future related disputes will also be subject to arbitration. The document should establish detailed procedures for arbitrator selection, including qualifications required under Saudi law and any specific expertise needed for your industry. You must address the applicable substantive law, arbitration rules, and procedural requirements that will govern your proceedings. Consider including provisions for interim relief, confidentiality obligations, and cost allocation between parties. The agreement should specify the arbitration seat and language of proceedings, which can significantly impact enforceability both domestically and internationally under the New York Convention.

Legal requirements in Saudi Arabia

Under the Saudi Arbitration Law, your agreement must contain explicit written consent from all parties to submit the dispute to arbitration. The document must clearly identify the dispute's subject matter and scope, ensuring arbitrators don't exceed their jurisdiction. You're required to specify the method for appointing arbitrators, including provisions for situations where parties cannot agree on selections. The agreement must comply with Sharia law principles, meaning it cannot cover disputes involving personal status matters, criminal issues, or matters affecting public policy. If your dispute involves international elements, ensure the agreement addresses potential conflicts between Saudi law and foreign legal systems. The document should also establish procedures that comply with the Implementation Regulations of the Saudi Arbitration Law, particularly regarding notification requirements and procedural timelines.