This Step Contributes to Raising Confidence in the Dispute Settlement Alternatives in the Kingdom
As part of the strategic steps to develop the mechanisms for supporting the investment environment in the Kingdom and to enhance the National Institutional Arbitration Industry, the Ministry of Commerce and Investment, after making the necessary study and coordination with the Saudi Center for Commercial Arbitration, has included the Model Arbitration Clause under the management of the Saudi Center for Commercial Arbitration in three of the Ministry's guiding contracts. This step would contribute to raising the confidence in the Dispute Settlement Alternatives in the Kingdom, and it is considered a qualitative leap in the development of the Saudi Institutional Arbitration Industry and contributes to the realization of the Kingdom’s Vision 2030, by creating a flexible and attractive investment environment for domestic and foreign investment.
The Ministry of Commerce and Investment explained that the guiding contracts that will include the arbitration clause under the management of the Saudi Center for Commercial Arbitration are: The Commercial Agency Contract, the Commercial Distribution Contract and the Commercial Franchise Contract. Indicating the extent of flexibility and speed of commercial dispute settlement that may happen to domestic and foreign investors during the settlement process with the Saudi Center for Commercial Arbitration, and the effective impact thereof in enhancing the competitiveness of the investment environment in the Kingdom and increasing the attractiveness of domestic and foreign investments.
On the other hand, the Chief Executive Officer of the Saudi Center for Commercial Arbitration, Dr. Hamid bin Hasan Meerah, hailed this qualitative leap and appreciated MCI confidence, giving his thanks to the Ministry of Commerce and Investment for its continuous cooperation and support under the chairmanship of His Excellency the Minister, Dr. Majid bin Abdullah Al-Qasabi. Dr. Hamid confirmed that the Saudi Commercial Arbitration Center is ready to receive all commercial disputes received from the local or international parties, assuring that the Center is fully ready all the time, through its approved arbitration and mediation rules, based on a strategic partnership with the International Arbitration Center of the American Arbitration Association "AAA-ICDR" as one of the greatest and oldest International Arbitration Institutions. Notably the Saudi Center for Commercial Arbitration contains professional advisors and cadres, trained at the most prominent international institutional arbitration centers. In addition, the list of arbitrators and mediators of the center includes a constellation of experts at the local and global level.
Dr. Hamid added that the Nationalization of the Institutional Arbitration Industry in the Kingdom is of great importance, through the existence of the Saudi Center for Commercial Arbitration, as a National Institution and a National Alternative for the settlement of commercial dispute, based on international standards and high professionalism and work under the support and harmony with the judiciary. This is of great importance and one of its manifestations is to provide an efficient and effective alternatives and saves us from resorting to foreign arbitration institutions, that may not have the Competitiveness provided by the Saudi Center for Commercial Arbitration.