A Critical Study on How the Saudi Arbitration Code Could Be Improved and on Overcoming the Issues of Enforcing Foreign Awards in the Country as a Signatory State to the New York Convention

It is essential for developing countries, including Saudi Arabia, to reform investment related regulations and laws, especially those related to arbitration. Sharia law in Saudi Arabia causes major concerns to foreign investors as it differs considerably from western legal systems. Therefore, the processes of arbitration and outcome are suffering from uncertainty and ambiguity. This essay will answer the question of how the Saudi government could encourage foreign investors through improving the current arbitration law. In reaching a conclusion on the necessary improvements, three main aspects will be analysed in the Saudi Arbitration Act which are finality of awards, choice of arbitrators and the authority to enter into arbitration agreements. Another important aspect will be discussed is the enforcement of foreign awards as a contracting state of the New York Convention. In conclusion, it is found that the Arbitration Code has several deficiencies that would concern foreign investors. Recommendations on how to develop the law will be given in order for the arbitration law to serve its purpose that is to create a legal certainty and security regarding dispute settlement