The Saudi Arabian Arbitration Regulations

224 Pages·2016·1.7 MB·English

by  Albara Abulaban

The Saudi Arabian Arbitration
Regulations:
A comparative study with the English
Act of 1996 and the Arbitration
Scotland Act of 2010

BY

ALBARA ABDULLAH ABULABAN

A thesis submitted in partial fulfillment of the requirements for
the Degree of Doctor of Philosophy
****
University of Stirling
United Kingdom

September 2015
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Table of Contents

The Saudi Arabian Arbitration Regulations: ....................................................... 0
Acknowledgements ................................................................................................ 9
Declaration and Certificate ................................................................................. 10
Abstract ............................................................................................................... 11
Chapter One: Introduction to the PhD .................................................................. 12
1.1. Introduction ................................................................................................... 12
1.2. Research Methodology .............................................................................. 13
1.3. Significance and Aim of the Study ........................................................... 15
1.4. Research questions: ................................................................................... 16
1.5. Thesis Content and Structure .................................................................. 17
2. Chapter Two: The Saudi legal system ............................................................. 19
2.1. Introduction ............................................................................................... 19
2.2. Consultation (Shura): ............................................................................... 20
2.3. The Modern Council of Consultation (Majlis Ash-Shura) .................... 21
2.4. The Saudi legal system: ............................................................................ 22
2.5. The Basic Law of Governance ................................................................. 22
2.6. The Council of Consultation Law ............................................................ 26
2.7. The Council of Ministers Law .................................................................. 28
2.8. History of Arbitration in Saudi Arabia ................................................... 30
2.9. Sharia Law and Public policy in Saudi Arabia ...................................... 35
2.9.1. Saudi Public Policy, Sharia Law and Arbitration Regulations ......... 37
3. Chapter Three: The agreement to arbitrate .................................................... 39
3.1. Introduction ............................................................................................... 39
3.2. Forms and contents of the arbitration agreement. ................................ 40
3.2.1. The position in Saudi Arabia ............................................................ 43
3.2.1.1. Arbitration clause ..................................................................... 44
3.2.1.1.1. The arbitration clause in Saudi Arabian legal system before
the Arbitration Regulations of 1983 ...................................................... 45
3.2.1.1.2. The arbitration clause in Saudi Arabian legal system after
the Arbitration Regulations of 1983 ...................................................... 46
3.2.1.1.3. What needs to be provided in an arbitration clause? ........ 46
3.2.1.1.4. The arbitration instrument................................................... 47
3.2.1.1.5. Validity of an arbitration clause without an arbitration
instrument48
3.2.1.2. Submission agreement ............................................................ 51
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3.2.2. The position in England and Scotland ............................................. 52
3.2.2.1. Arbitration clause ..................................................................... 53
3.2.2.2. Submission agreement ............................................................ 54
3.2.3. Comparison and conclusions ............................................................ 54
3.3. Validity of the arbitration agreement ..................................................... 56
3.3.1. The agreement in writing: ................................................................. 56
3.3.1.1. The position in Saudi Arabia ................................................... 56
3.3.2. Modern means of communication .................................................... 58
3.3.2.1. The position in England and Scotland ................................... 60
3.3.2.2. Comparison and conclusions ................................................. 61
3.3.3. Capacity .............................................................................................. 62
3.3.3.1. The position in Saudi Arabia ................................................... 62
3.3.3.1.1. Capacity of the private parties ............................................ 62
3.3.3.1.2. Capacity of the state and its agencies................................ 63
3.3.3.2. The position in England and Scotland ................................... 65
3.3.4. Arbitrability ....................................................................................... 66
3.3.4.1. The position in Saudi Arabia ................................................... 66
3.3.4.2. The position England and Scotland ........................................ 67
3.4. Conclusion .................................................................................................. 67
3.4.1. Findings of the chapter: .................................................................... 68
4. Chapter Four: The Arbitrators ........................................................................ 70
4.1. Introduction ............................................................................................... 70
4.2. Conditions that must be met for an arbitrator ....................................... 70
4.2.1. Capacity .............................................................................................. 72
4.2.1.1. The position in Saudi Arabia ................................................... 72
4.2.1.2. The position in England and Scotland ................................... 74
4.2.1.3. Conclusion .................................................................................. 75
4.2.2. Gender of the arbitrator .................................................................... 75
4.2.3. Nationality of the arbitrator ............................................................. 76
4.2.4. Physical disability .............................................................................. 77
4.2.5. Qualification ....................................................................................... 78
4.2.6. Religion ............................................................................................... 79
4.2.7. Profession ............................................................................................ 80
4.2.8. The arbitrator must not have any interest in the case .................... 80
4.2.9. Good Conduct and Behaviour .......................................................... 81
4.2.10. Number of arbitrators ................................................................... 82
4.2.10.1. The position in England and Scotland ................................... 82
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4.2.11. Conclusion ....................................................................................... 83
4.3. Appointing the arbitrator ......................................................................... 84
4.3.1. Appointing the arbitrator by the parties in dispute: ...................... 84
4.3.1.1. The position in Saudi Arabia ................................................... 84
4.3.1.2. The position in England and Scotland ................................... 86
4.3.2. Appointing the arbitrators by court................................................. 88
4.3.2.1. The position in Saudi Arabia ................................................... 88
4.3.2.2. The position in England and Scotland ................................... 89
4.4. Arbitrator’s acceptance to their mission ................................................. 92
4.5. Arbitrators’ mission accomplished .......................................................... 92
4.5.1. Reasons why an arbitrators mission ends........................................ 93
4.5.1.1. Arbitrator stepping down ........................................................ 94
4.5.1.1.1. The position in Saudi Arabia ............................................... 94
4.5.1.1.2. The position in England and Scotland ............................... 95
4.5.1.2. Removal of an arbitrator .......................................................... 96
4.5.1.2.1. The position in Saudi Arabia ............................................... 96
4.5.1.2.2. The position in England and Scotland ............................... 99
4.5.1.3. Conclusion ............................................................................. 101
4.6. Challenging the arbitrator ..................................................................... 102
4.6.1. The position in Saudi Arabia .......................................................... 102
4.6.2. The position in England and Scotland ........................................... 107
4.7. Arbitrators’ authority ............................................................................. 111
4.7.1. The position in Saudi Arabia .......................................................... 111
4.7.2. The position in England and Scotland ........................................... 113
4.8. The duties and responsibilities of an arbitrator and their rights: ...... 114
4.8.1. The position in Saudi Arabia .......................................................... 114
4.8.2. The position in England and Scotland ........................................... 116
4.9. Conclusion ................................................................................................ 118
4.9.1. Findings and recommendations ...................................................... 119
4.9.1.1. Capacity .................................................................................. 119
4.9.1.2. The gender of the arbitrator .................................................. 119
4.9.1.3. Nationality .............................................................................. 120
4.9.1.4. Physical ability ....................................................................... 120
4.9.1.5. Qualifications ......................................................................... 120
4.9.1.6. Religion ................................................................................... 121
4.9.1.7. Profession .............................................................................. 121
4.9.1.8. Number of arbitrators ............................................................ 121
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4.9.1.9. Appointing arbitrators ........................................................... 122
4.9.1.10. Arbitrator stepping down ...................................................... 122
4.9.1.11. Removal of the arbitrator ....................................................... 123
4.9.1.12. Challenging the arbitrator ..................................................... 123
5. Chapter Five: The Proceedings ..................................................................... 125
5.1. Introduction ............................................................................................. 125
5.2. Law Applicable to the Procedure .......................................................... 125
5.2.1. The position in Saudi Arabia .......................................................... 125
5.2.2. The position in England and Scotland ........................................... 128
5.2.3. Conclusion ........................................................................................ 129
5.3. Place of Arbitration ................................................................................. 129
5.3.1. The position in Saudi Arabia .......................................................... 129
5.3.2. The position in England and Scotland ........................................... 131
5.4. Language of Arbitration ......................................................................... 131
5.4.1. The position in Saudi Arabia .......................................................... 131
5.4.2. The position in England and Scotland ........................................... 132
5.5. Time-Periods ............................................................................................ 133
5.5.1. The position in Saudi Arabia .......................................................... 133
5.5.2. The position in England and Scotland ........................................... 137
5.6. Experts ..................................................................................................... 141
5.6.1. The position in Saudi Arabia .......................................................... 141
5.6.2. The position in England and Scotland ........................................... 143
5.7. Witnesses .................................................................................................. 144
5.7.1. The position in Saudi Arabia .......................................................... 144
5.7.2. The position in England and Scotland ........................................... 145
5.8. Statements of Claim and Defence .......................................................... 146
5.8.1. The position in Saudi Arabia .......................................................... 146
5.8.2. The position in England and Scotland ........................................... 150
5.8.3. Conclusion ........................................................................................ 152
5.9. The sessions; administration and record .............................................. 153
5.9.1. The position in Saudi Arabia .......................................................... 153
5.10. Presence and absence of the parties ................................................... 156
5.10.1. The position in Saudi Arabia ...................................................... 156
5.10.2. The position in England and Scotland ....................................... 157
5.11. Stay and Interruption of the Proceedings ......................................... 158
5.11.1. The position in Saudi Arabia ...................................................... 158
5.12. The End of the Proceedings ................................................................ 159
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5.12.1. The position in Saudi Arabia ...................................................... 159
5.12.2. The position in England and Scotland ........................................... 161
5.13. Conclusion ............................................................................................ 164
5.13.1. Findings and recommendations .................................................. 165
5.13.1.1. Applicable law: ......................................................................... 165
5.13.1.2. Place of arbitration: .................................................................. 166
5.13.1.3. Language: ................................................................................ 166
5.13.1.4. Time periods: ........................................................................... 166
5.13.1.5. Experts: .................................................................................... 168
5.13.1.6. Witnesses: ................................................................................ 168
5.13.1.7. Statement of claim and defence: ................................................ 169
5.13.1.8. Stay and interrupt of the proceedings: ....................................... 170
6. Chapter Six: Arbitration Awards ................................................................... 171
6.1. Introduction ............................................................................................. 171
6.2. Law Applicable ........................................................................................ 171
6.2.1. The position in Saudi Arabia .......................................................... 171
6.2.2. The position in England and Scotland ........................................... 172
6.3. Majority vote ........................................................................................... 173
6.3.1. The position in Saudi Arabia .......................................................... 173
6.4. Types of the arbitral award .................................................................... 175
6.4.1. The position in Saudi Arabia .......................................................... 175
6.4.2. The position in England and Scotland ........................................... 176
6.5. Form and contents of the award ............................................................ 177
6.5.1. The position in Saudi Arabia .......................................................... 177
6.5.2. The position in England and Scotland ........................................... 180
6.6. Registration and notification of the award ........................................... 180
6.6.1. The position in Saudi Arabia .......................................................... 180
6.7. Notification of the award ........................................................................ 182
6.7.1. The position in Saudi Arabia .......................................................... 182
6.7.2. The position in England and Scotland ........................................... 183
6.8. Correction and interpretation of the award ......................................... 183
6.8.1. The position in Saudi Arabia .......................................................... 183
6.8.2. The position in England and Scotland ........................................... 186
6.9. Challenging the Award ........................................................................... 187
6.9.1. The Position in Saudi Arabia.............................................................. 188
6.9.2. The Position in England and Scotland ............................................... 194
6.10. Conclusion ............................................................................................ 197
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6.10.1. Findings and recommendations .................................................. 197
6.10.1.1. Majority vote: ........................................................................... 197
6.10.1.2. Types of an award: ................................................................... 198
6.10.1.3. Form and content of an award: ................................................. 199
6.10.1.4. Registration and notification of the award: ................................ 199
6.10.1.5. Corrections and interpretation of the award: ............................. 200
6.10.1.6. Challenging the Award ............................................................. 200
7. Chapter Seven: Conclusion ........................................................................... 202
7.1. Main findings and recommendations .................................................... 204
7.1.1. Forms and content of the arbitration agreement and the
reparability of the arbitration agreement ................................................... 204
7.1.2. Arbitration instrument .................................................................... 204
7.1.3. Requirements for an arbitration agreement to be valid .............. 204
7.1.4. Capacity ............................................................................................ 205
7.1.5. The gender of the arbitrator ........................................................... 206
7.1.6. Nationality ........................................................................................ 206
7.1.7. Physical ability ................................................................................. 206
7.1.8. Qualifications ................................................................................... 207
7.1.9. Religion ............................................................................................. 207
7.1.10. Profession ...................................................................................... 207
7.1.11. Number of arbitrators ................................................................. 208
7.1.12. Appointing arbitrators................................................................. 208
7.1.13. Arbitrator stepping down ............................................................ 209
7.1.14. Removal of the arbitrator ............................................................ 209
7.1.15. Challenging the arbitrator .......................................................... 209
7.1.16. Applicable law: ............................................................................. 210
7.1.17. Place of arbitration: ..................................................................... 211
7.1.18. Language:...................................................................................... 211
7.1.19. Time periods: ................................................................................ 211
7.1.20. Experts: ......................................................................................... 213
7.1.21. Witnesses:...................................................................................... 213
7.1.22. Statement of claim and defence: ................................................. 214
7.1.23. Stay and interrupt of the proceedings:....................................... 215
7.1.24. Majority vote: ............................................................................... 215
7.1.25. Types of an award: ....................................................................... 216
7.1.26. Form and content of an award: .................................................. 216
7.1.27. Registration and notification of the award: ............................... 217
7.1.28. Corrections and interpretation of the award: ........................... 217
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7.1.29. Challenging the Award ................................................................ 218
Bibliography ....................................................................................................... 219

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Acknowledgements

I first thank Allah for the help and strength he gave me to finish this work. I then
thank my family for all the support they provided throughout the years, especially
my beloved parents.

I am obliged to thank my supervisors Professor Fraser Davidson, who is now an
Emeritus Professor for his support and help throughout the years and My sincere
thanks and appreciation also goes to Dr. Hong-Lin Yu who is now my first
supervisor for her great help and support to bring this work to a good standard.

I extend my thanks to everyone who supported me or wished me luck from friends
and family here in the United Kingdom or back home in Saudi Arabia.

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