Arbitration agreements in Saudi Arabia: writing and defining the dispute’s scope

Section 01

Writing is an essential requirement for an arbitration agreement

Article 9 of the Arbitration Law requires the agreement to be in writing and provides for invalidity if that requirement is absent. It explains that writing may be satisfied by a document issued by both parties, documented correspondence or electronic or written communications in accordance with its provisions. This does not mean that the mere existence of any message or conversation creates an arbitration agreement; its content and meaning require review.

The same article permits an agreement before a dispute, either as a contractual clause or a separate document, and after a dispute arises. In the latter case, the matters covered by arbitration must be specified, otherwise the agreement is invalid.

Section 02

Arbitration scope and the capacity of those agreeing

Article 2 excludes family-law disputes and matters that cannot be settled by compromise from the law’s scope. Article 10 links validity to a person’s ability to dispose of their rights and provides a specific rule for government entities’ agreements, subject to special statutory provisions. The nature of the dispute, parties’ capacities and signing authority are therefore examined when reviewing the agreement.

Section 03

Practical questions before approving a clause

Start by defining the relationship covered: one contract or several connected contracts? Is the wording clear about the intended disputes? Review the selected arbitration rules, place, language and arbitrator selection process, and any reference to another document containing the clause.

These questions help explain the clause’s practical effects. They do not suggest that the absence of each item automatically causes invalidity; assessment depends on the law, agreement and circumstances. Cost, the relationship’s nature and whether it may continue also merit discussion before choosing a route.

Practical preparation guidance, not legal provisions or official requirements.

Section 04

If the dispute has already begun

Gather the signed contract, addenda, arbitration-related correspondence and any proceedings started elsewhere. Record the disputed issues and each party’s requests so their connection to the existing agreement can be assessed.

Finding the word ‘arbitration’ in a document is not enough to determine the appropriate route. Review requires examining the wording, representatives’ authority, sequence of agreements and steps already taken. This preparation helps identify issues to address before the next step.

Practical preparation guidance, not legal provisions or official requirements.

Checklist

What helps when reviewing an arbitration agreement?

An indicative preparation checklist. Verify official requirements with the relevant authority for the service and circumstances.

• The signed contract, addenda and referenced documents.
• Any separate agreement or arbitration-related correspondence.
• Party details, representatives’ capacities and available signing documents.
• A summary of disputed matters and current requests.
• Notices relating to any proceedings already started concerning the dispute.

Official sources

Verify the law and procedure with the relevant authority

The following references link to legal texts or official service descriptions. The content here is a simplified explanation, not a verbatim reproduction of the source.

1. Arbitration Law — Bureau of Experts at the Council of Ministers ↗

   Article 2: scope of the law. Article 9: timing and writing requirements. Article 10: capacity to agree.