Challenges towards selecting Saudi Arabia as an arbitral seat for foreign investors

Abstract

Abstract Identifying the seat of arbitration jurisdiction is of great significance to the arbitral procedure. Countries seek to develop their arbitration laws and harmonize the cross-border arbitral regimes in order to modernize the practices and increase foreign direct investments nationally. Foreign parties aim to select an arbitral seat that is efficient and conforms to international arbitration practices. The parties’ choice of seat dictates the arbitral procedure adopted on the dispute and influences the boundaries of the arbitral awards. This paper evaluates Saudi Arabia as an arbitral seat for foreign investors and considers the key factors affecting the parties’ selection. Further, the paper analyses the legal barriers faced by the parties in association with selecting the Kingdom as a seat for arbitration. The purpose of the paper is to outline the challenges and present recommendations to develop the practices of arbitration in Saudi Arabia to increase its level of conformity to international arbitration standards.