Those who operate in the
The new
Background to the SCCA
The SCCA and arbitration in the KSA
The SCCA was first established in 2014 to offer alternative dispute resolution (ADR) services, including arbitration and mediation, for commercial disputes both in English and Arabic. Its vision is to become the preferred ADR service provider in the region by 2030.
Rapid economic growth in KSA means that there is significant potential for the SCCA to serve as a key center for the resolution of disputes arising in the region. The establishment of the SCCA Court and the SCCA Rules are significant steps towards making this ambition a reality.
The SCCA Court
The SCCA announced the creation of an independent SCCA Court in
The President of the SCCA Court is Professor
Key innovations in the New Rules
Technology
The SCCA Rules place a new-found importance on the use of technology to optimize efficiency in arbitrations while reflecting the importance of the parties, the arbitrators and the SCCA adopting reasonable information security measures to protect data privacy, as well as safeguarding against cybersecurity breaches and data protection risks (Article 46).
For example:
Service | Article 4.1 provides that a notice of arbitration can now be served by email or "other electronic means" if it provides a record of its transmission, which brings the New Rules into line with other arbitral institutions like the LCIA Rules. |
Case Management |
Article 25.2 now provides that the |
Electronic Signing of Awards | Article 36 provides a new default for all awards to be signed electronically. |
Online Disputes Resolution (ODR) |
Appendix IV of the New Rules enables parties involved in lower
value disputes (not exceeding |
Early Disposition of claims or defenses (Article 26
The SCCA Rules provide that any party may request that the arbitral tribunal summarily dispose of issues of jurisdiction, admissibility or legal merit raised in a claim or defense. This is a significant development and mirrors provisions for 'early determination' under the LCIA Rules and 'expeditious determination' under the ICC Rules. Article 26 may potentially truncate proceedings (and consequently reduce costs) where a claim or defense is manifestly without merit, no award can be issued under the applicable law or where, for other reasons, the case should be disposed of early.
Increased case management and widened discretion
The SCCA Rules provide that both the SCCA Court and the arbitral tribunal should actively engage in case management. They are provided with discretion to make decisions in this regard. For example:
Expedited proceedings |
The New Rules now importantly provide for an expedited
procedure for determining claims (Article 1 of Appendix II)
mirroring the provisions of other arbitral institutions such as the
ICC. The expedited procedure will apply if the parties agree or
where the amount in dispute does not exceed |
Emergency arbitrator | The New Rules have also developed the provisions for emergency relief in cases of urgency (Article 7). An Emergency Arbitrator, if appointed, will now order or award any interim, provisional, or precautionary measures no later than 15 days from when the case file was transmitted to him/her, albeit this timeframe can be extended if necessary. |
Consolidation/ Coordination | The New Rules provide that parties have the option to file a single request for arbitration at the outset for all claims arising out of or in connection with multiple contracts or arbitration agreements, subject to certain conditions (Article 11).
Article 13 also provides that the parties or
Article 14 further provides the |
CMC |
Article 25.2 tightens the timeframe for conducting the initial
case management conference and provides that the |
Review of Awards | The New Rules provide (Article 36(4)) that the SCCA Court shall review and approve all draft awards and suggest modifications if necessary. This is a significant development and will be key in ensuring the quality and enforceability of SCCA awards. |
Settlement |
Article 25(7) now provides a renewed emphasis on settlement;
the |
Costs
As the New Rules place an emphasis on greater efficiency, it is useful to consider the reality of the cost implications. The SCCA has a helpful fee calculator (
A comparison of administrative and arbitration tribunal fees across the SCCA,
Conclusion
The SCCA Rules provide for greater certainty and clarity and bring the SCCA in line with international best practice alongside other leading international arbitration institutions. They are a significant step forward to demonstrate the KSA's commitment to becoming a leading arbitration institution in the region and provide a solid framework for ensuring claims are dealt with consistently, and notably more cost effectively.
Mohammed Altammami
4th
Dubai
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