In business, time is no less valuable than money. When parties enter into a commercial dispute, the duration of the process becomes as decisive as the outcome itself. At Mohammed Almuzayen Law Firm, we witness this reality daily in arbitration cases, where disputes transform into a race against time. With the Saudi Center for Commercial Arbitration (SCCA) adopting Expedited Arbitration Rules, companies now have a strategic option that blends efficiency, fairness, and speed.
- Expedited arbitration at SCCA applies to disputes valued at ≤ SAR 4 million, and may be activated by agreement in higher-value cases.
- Strict timelines: from 30 days after closing submissions to a maximum of 180 days for the final award.
- Clear procedural stages: Request → Administrative Conference → Preliminary Hearing → Submissions → Hearings → Award.
- Our firm serves as arbitrators (sole or tribunal members) and counsel, offering comprehensive representation before SCCA.
Standard Arbitration: The Traditional Path for Complex Disputes
Arbitration in its classical form is designed for disputes requiring extensive exploration: three arbitrators, lengthy pleadings, witnesses, experts, and hearings that may extend beyond a year. This structure is useful in high-value disputes such as billion-riyal construction contracts or cross-border joint ventures.
However, the trade-off is time and cost. For medium-value disputes, many investors hesitate to resort to arbitration if it entails prolonged delays.
Expedited Arbitration: Compressed Justice with Defined Timelines
Expedited arbitration offers an alternative, designed for lower-value or moderately complex disputes. At SCCA, the process applies automatically when total claims do not exceed SAR 4 million, but parties may agree to use it regardless of the amount in dispute.
Scope of Application
- Disputes ≤ SAR 4 million (automatic).
- Larger disputes if both parties agree.
- Appointment of a sole arbitrator instead of a three-member tribunal.
Strict Timeframes
- The clock starts once proceedings are closed.
- Awards must be issued within 30 days thereafter, capped at 180 days from tribunal formation.
- Extensions are rare and subject to SCCA approval.
This “time engineering” reassures investors that disputes will not turn into long-term burdens, particularly in fast-paced sectors such as supply chain or franchise disputes.
Procedural Steps under the SCCA Guide
1. Filing the Request
The process begins with a request for arbitration, accompanied by the arbitration agreement (clause or submission). The respondent has 30 days to reply and may submit a counterclaim. Filing fees are paid by the claimant in accordance with SCCA’s fee schedule.
2. Administrative Conference & Appointment of Arbitrators
SCCA organizes a joint administrative call with the parties to set ground rules: communication methods, seat of arbitration, number of arbitrators, and qualifications. If no agreement is reached, SCCA appoints the arbitrator at its discretion.
3. Preliminary Hearing
The first formal meeting between the tribunal and parties is usually via conference call. The hearing sets the timetable for submissions, document exchange, and hearing dates. A “Procedural Order” records these directions.
4. Exchange of Submissions
Parties file memorials and supporting documents within the agreed deadlines. Witness lists may also be submitted at this stage.
5. Hearings
Counsel present oral arguments, witnesses testify, and experts (if any) are examined. Once the tribunal is satisfied that both parties have had a fair opportunity, the proceedings are declared closed.
6. Issuance of the Award
The award must be reasoned, in writing, and issued within 60 days of closing hearings in standard cases—or within 30–180 days under the expedited track. If parties settle, the tribunal may record the settlement in a consent award.
Why Investors Choose Expedited Arbitration
- Time Savings: No frozen capital or prolonged disruption to operations.
- Cost Efficiency: Reduced arbitrators’ and counsel’s fees.
- Investor Confidence: Predictable timelines enhance business certainty.
- Global Alignment: ICC in Paris and SIAC in Singapore have adopted expedited tracks; SCCA’s rules bring the Kingdom in line with international standards while tailoring them to the local market.
A Brief International Comparison
- ICC (Paris): Introduced expedited track in 2017 for disputes up to USD 2 million, with a sole arbitrator and compressed schedule.
- SIAC (Singapore): Established expedited proceedings as a hallmark feature, with awards rendered within 6 months.
- SCCA (Saudi Arabia): Distinguished by its SAR 4 million threshold and integration with digital arbitration tools, reflecting both global best practices and local commercial realities.
Our Role in Saudi Arbitration
At Mohammed Almuzayen Law Firm, we approach arbitration as a strategic business tool, not just a legal process. Our contributions include:
- Representing clients before arbitral tribunals, from filing to enforcement.
- Acting as sole arbitrators or as part of three-member tribunals in commercial and investment cases.
- Advising on drafting arbitration clauses to ensure enforceability.
- Leveraging our record in franchise, construction, and investment disputes.
- Bridging Saudi arbitration with international practices through bilingual expertise and cross-border experience.
Impact of Expedited Arbitration on Saudi Investment Climate
The adoption of expedited arbitration reflects Saudi Arabia’s commitment to enhancing its business environment and attracting foreign investment. Today, an investor signing a contract in Riyadh or Jeddah knows that if a dispute arises, it can be resolved fairly and swiftly under SCCA rules. This strengthens the Kingdom’s reputation as a secure and efficient investment hub, positioning SCCA alongside leading global arbitration centers.
FAQ
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What is the difference between standard and expedited arbitration?
Standard arbitration may take a year or more with three arbitrators, while expedited arbitration is resolved within months by a sole arbitrator.
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Does expedited arbitration apply automatically?
Yes, if claims are ≤ SAR 4 million, or by party agreement for higher-value disputes.
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What is the maximum duration for issuing an award?
180 days from tribunal formation, with as little as 30 days after closing submissions.
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Can law firms nominate arbitrators?
Yes, parties may propose names, with final appointments confirmed by SCCA.
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Why choose Mohammed Almuzayen Law Firm?
We combine dual expertise as counsel and arbitrators, making us the first choice for clients seeking efficiency and speed before SCCA.
Executive Summary
- Expedited arbitration is an effective tool for resolving lower-value disputes in Saudi Arabia.
- SCCA rules impose clear, strict timelines.
- Investors save time and enhance trust by adopting this process.
- Our firm acts as arbitrators and counsel, offering strategic representation.
- The Saudi experience aligns with global trends in Paris and Singapore.
- The broader impact: bolstering investor confidence in the Saudi market.
