Arbitration, mediation or court with a Saudi counterparty
Usually your contract decides. If it names arbitration, for example at the Saudi Center for Commercial Arbitration (SCCA), the dispute normally goes there. If it names nothing, a claim against a Saudi company usually goes to the Saudi courts. Mediation can come first on either route, if both sides agree.
Published by RAED ALI ALJOHANI COMPANY FOR Lawyership and Legal Consultations · Last updated
General information about Saudi law — not advice on your situation.
At a glance
- Who this is for
- Foreign companies in a dispute with a Saudi distributor, agent, contractor, supplier or customer, and their foreign lawyers. Also companies agreeing a dispute clause before they sign.
- Can it be handled from outside Saudi Arabia?
- Yes. Usually. A Saudi lawyer can act for you under a power of attorney. Saudi courts run most hearings electronically, and arbitration hearings can often be held online.
- What usually decides the route
- The dispute clause in your contract, whether both sides will try mediation, and where the other side’s assets are.
- What you usually need first
- The contract’s dispute clause and a short outline of the dispute. No documents yet.
- First step with us
- Send us a short outline by WhatsApp, phone or email.
- Working languages
- Arabic and English
Tell us who the Saudi counterparty is and what the contract says about disputes. We’ll explain which routes are open.
Can you run a dispute with a Saudi company from abroad?
Usually, yes, on each route. A licensed Saudi lawyer acts for you under a power of attorney that you sign and have stamped in your own country. For the details, see power of attorney for Saudi Arabia, signed abroad.
Saudi courts run most hearings electronically. Court claims are filed through Najiz, the Ministry of Justice’s online platform for cases. Najiz signs users in with Nafath, which needs a Saudi digital identity, so a company abroad usually acts through a lawyer. Arbitration hearings can often be held online, depending on the rules and the tribunal. If any step needs someone in person, we tell you early.
Who decides whether a dispute goes to arbitration, court or mediation?
Usually the contract. Its dispute clause, the part that says how disputes are settled, normally decides the route. If it names arbitration, the dispute normally goes to arbitration. If it names the courts, or says nothing, a claim against a Saudi company usually goes to the Saudi courts.
Mediation is different. It only happens if both sides agree to it, either in the contract or after the dispute starts. So we read the whole contract first, in both languages if there are two. Other terms, such as notice steps before a claim, can also shape the route.
What are the routes for a dispute with a Saudi company?
There are three main routes: mediation, the Saudi courts and arbitration. Mediation looks for a settlement that both sides accept; nobody imposes a decision. The courts decide a claim when the contract names them or names nothing. For a business dispute, that usually means the commercial courts, the courts that hear disputes between businesses. Arbitration replaces the court only when both sides have agreed to it, usually in the contract. Its decision, called an award, binds both sides. Negotiation can happen at any time on all three routes. Which route is open to you depends first on what your contract says. We read it before any notice is sent.
What is SCCA arbitration?
Arbitration run by the Saudi Center for Commercial Arbitration (SCCA) under its own rules. According to the SCCA, it offers standard, expedited and emergency arbitration, and mediation. Its website has its rules and model clauses.
The parties, or the SCCA, choose one or more arbitrators to decide the dispute. The arbitrators issue an award. An SCCA award is made in Saudi Arabia, so a Saudi court is usually asked to allow its enforcement there. Contracts can also name another arbitration body, or arbitration seated outside Saudi Arabia.
Can a dispute with a Saudi company be settled by mediation?
Often, if both sides are willing. A mediator is a neutral person who helps both sides reach an agreement. Nothing is decided unless both sides sign a settlement.
In Saudi Arabia, mediation is offered by the SCCA. The Ministry of Justice also runs Taradhi, its online platform for settling disputes by agreement. Each sets out on its own site who can use it and how. We tell you which one fits your dispute, and how a signed settlement can be enforced if the other side does not keep to it.
How do arbitration, the courts and mediation compare?
This is a general comparison. The contract’s dispute clause usually decides which route is open, and each dispute differs.
| Comparison | Arbitration (SCCA or another body) | Saudi courts | Mediation (SCCA or Taradhi) |
|---|---|---|---|
| When it is open | When both sides agreed to it, usually in the contract | When the contract names the courts, or names nothing | When both sides agree to try it |
| Who decides | Arbitrators chosen under the contract or the rules | A Saudi judge | Nobody; the parties agree, or not |
| Language | Can depend on the contract and the rules | Arabic | Can depend on the mediator and the parties |
| How private it is | Usually private; the rules and the contract set how much | A court process | Usually private |
| What you end up with | An award, which a Saudi court reviews before enforcement | A judgment, which the Enforcement Court can enforce | A signed settlement, if both sides agree |
| Abroad | Many awards can be enforced in other member countries of the New York Convention | Enforcing a Saudi judgment abroad depends on that country’s rules | Depends on how the settlement is recorded |
How choosing the route usually works, step by step
- Tell us about the dispute and the counterparty. A few lines are enough. Don’t send documents yet.
- Agree our engagement. We tell you whether we can help, what we need and how fees are agreed. Work starts only after an engagement letter, the written agreement between you and the firm, is signed.
- Let us read the contract and its dispute clause. Where a lawyer helps: spotting a clause that is unclear, or one with notice steps you must follow first.
- Check where the other side’s assets are. The route should lead to something you can enforce against those assets.
- Decide whether to try mediation first. This needs the other side’s agreement.
- Start the route the contract names. We file the claim or the request for arbitration, under a power of attorney from you. Where a lawyer helps: preparing the claim and the evidence in Arabic.
- Enforce the result. A judgment, an award or a signed settlement may still need enforcing against the other side’s assets. See enforcing an arbitration award in Saudi Arabia.
What to prepare
A short outline is enough for a first message. Have these ready:
- The contract, and the exact wording of its dispute clause, in every language it was signed in.
- Who the Saudi counterparty is: its full name and, if you have it, its commercial registration (CR) number.
- What the dispute is about, and roughly what is at stake.
- Emails, messages and other records of what was agreed and what went wrong.
- Any notice either side has already sent.
- What you know about the other side’s assets in Saudi Arabia.
Please don’t send documents until we agree to act for you.
Frequently asked questions
What if our contract with the Saudi company says nothing about disputes?
Then a claim in the Saudi commercial courts is usually the route, because the contract names no other. Both sides can still agree to try mediation, where a neutral person helps them reach an agreement. We read the whole contract first, because other terms, such as those on payment and on ending the contract, can affect what you do next.
Source: Disputes with Saudi distributors, agents, contractors and suppliers
What if the clause says either side may go to arbitration or to court?
Have the clause read before you file anything. Your contract’s dispute clause usually decides which route is open, so its exact wording matters, in both languages if there are two. A notice is hard to take back. We read the clause, and the rest of the contract, before any notice is sent or any claim is filed, and then advise where to start.
Source: Disputes with Saudi distributors, agents, contractors and suppliers
Can a dispute with a Saudi agent or distributor go to arbitration?
It can, if your contract names arbitration, at the Saudi Center for Commercial Arbitration (SCCA) or another body. The right route also depends on the rest of the contract and on your evidence, so a licensed lawyer should read the dispute clause before any notice is sent. See ending a distributor or agent agreement in Saudi Arabia.
Source: Disputes with Saudi distributors, agents, contractors and suppliers
Should we choose arbitration or the Saudi courts in a new contract?
There is no single answer, and it is a choice to make with a licensed lawyer. The dispute clause you sign usually decides which route is open later: the Saudi courts, or arbitration at the SCCA or another body, perhaps after mediation. The right route depends on your contract and the deal. We go through the clause with you before you sign, and we read it with the whole contract.
Source: Disputes with Saudi distributors, agents, contractors and suppliers
How much does arbitration or a court case cost in Saudi Arabia, and how long does it take?
There is no standard figure or timeline. Both depend on the route, the evidence and how the other side responds. Some costs, such as court or arbitration fees, are set by others, and they change, so we don’t list them. Our own fees are agreed in writing before any work starts. See how legal fees work in Saudi Arabia.
Official sources
This page draws on 4 official sources. Each line shows who publishes it, its language and, where recorded, the date we last checked it.
- Saudi Center for Commercial Arbitration (SCCA) · Arbitration (in Arabic and English) · checked
- Saudi Center for Commercial Arbitration (SCCA) · Mediation (in Arabic and English) · checked
- Ministry of Justice · Taradhi (Ministry of Justice e-reconciliation) (in Arabic) · checked
- Ministry of Justice · Najiz (Ministry of Justice e-services) (in Arabic) · checked
What usually comes next
General information about Saudi law, not legal advice on your situation. For your own case, speak to a licensed lawyer. Contacting us does not create a lawyer–client relationship until an engagement letter is signed.