Saudi Real Estate Arbitration Center
The Saudi Real Estate Arbitration Center facilitates arbitration, conciliation, and mediation procedures, providing efficient and expedited solutions for real estate disputes. By offering an alternative dispute resolution mechanism, it helps ease the burden on judicial courts. The Center serves as a legal reference and a trusted arbitration authority within the real estate sector.
Chapter One: Definitions
Article (1) – Definitions:
For the purposes of implementing the provisions of this Law, the following terms and expressions shall have the meanings ascribed to them below, unless the text explicitly provides otherwise or the context requires a different interpretation:
1. Kingdom: The Kingdom of Saudi Arabia.
2. Administrative Centers: Administrative divisions within the Kingdom of Saudi Arabia, comprising the principal village to which a group of surrounding villages is affiliated. Typically, this village is the largest and most significant, serving as the administrative hub for the surrounding villages and falling under the jurisdiction of governorates or emirates. It includes multiple population centers.
3. Authority: The Real Estate General Authority.
4. Center: The Saudi Real Estate Arbitration Center.
5. Real Estate Activities: Any activity or set of activities undertaken to provide specific real estate-related products or services, including but not limited to real estate development, off-plan sales, real estate brokerage, leasing, real estate valuation, and any other real estate activities approved by the Authority.
6. Arbitration Law: The Saudi Arbitration Law, issued by Royal Decree No. M/34 dated 24/5/1433 H., including any subsequent amendments.
7. Law: The Bylaws of the Saudi Real Estate Arbitration Center.
8. Board: The Board of Directors of the Saudi Real Estate Arbitration Center.
9. Secretary-General: The head of the Center’s executive body.
10. Ordinary Majority: A majority of the total number of members present, exceeding half of the Board members entitled to vote.
11. Absolute Majority: A majority of the total number of members present, representing at least two-thirds of the Board members entitled to vote.
12. Arbitration Award: A final and binding decision issued by a sole arbitrator or an arbitration tribunal.
13. Arbitration Agreement: An agreement between two or more parties stipulating that certain disputes, whether existing or future, shall be referred to arbitration. This may take the form of an arbitration clause within a contract or a separate arbitration agreement.
14. Arbitration Tribunal: A panel of arbitrators or a sole arbitrator appointed to resolve the dispute referred to arbitration.
15. Parties: The disputing parties in arbitration proceedings, comprising the claimant and the respondent.
16. Conciliation and Settlement Office: The designated body within the Center responsible for overseeing conciliation and settlement procedures and assisting in the facilitation of dispute resolution within the Center’s jurisdiction.
17. Arbitration Office: The competent body within the Center managing arbitration and coordination between disputing parties and arbitrator.
18. Procedural Rules: The Center's rules clarifying procedures for resolving disputes referred to the Center.
Chapter Two: Establishment, Headquarters, and Legal Basis
Article (2) – Establishment of the Center:
An arbitration center, named the Saudi Real Estate Arbitration Center, shall be established by a decision of the Authority’s Board and licensed by the Permanent Committee for Arbitration Centers. The Center shall operate under the Authority’s oversight while maintaining independent legal personality, both administratively and financially. Its primary objective is to resolve disputes related to real estate activities or any other real estate matters designated by the Authority, provided the parties have agreed to settle such disputes through arbitration or conciliation within the Center’s framework. The Center shall conduct its proceedings through a streamlined and expedited electronic mechanism. It shall function as a neutral entity and shall be represented by the Chairman of the Board or a duly authorized delegate.
Article (3) – Legal Basis for the Establishment of the Center:
The establishment of the Center shall be governed by the following legal references:
a. The Saudi Arbitration Law and its Implementing Regulations.
b. The Saudi Arbitration Centers Licensing Rules issued by the Permanent Committee for Saudi Arbitration Centers.
c. The Guidelines for Determining Arbitrators' Fees and Expenses at Arbitration Centers, as issued by the Permanent Committee for Saudi Arbitration Centers.
Article (4) – Legal Reference for the Center’s Operations:
The Saudi Arbitration Law and its Implementing Regulations, the Center’s Bylaws, regulations, procedural rules, and guidelines, along with any amendments thereto, as well as the decisions and standards issued by the Board, shall serve as the governing legal framework for the administration and conduct of arbitration and conciliation proceedings at the Center.
Article (5) – Location of the Center and Arbitration Tribunals:
The Center’s headquarters shall be located in Riyadh. The Board may, as deemed necessary, establish additional branches in other cities within the Kingdom. Arbitration tribunals and conciliators, operating under the Center’s administration and in accordance with its procedures, may conduct arbitration or conciliation proceedings outside the Center’s headquarters in any city, governorate, or administrative center within the Kingdom, provided the dispute falls within the Center’s jurisdiction.
Chapter Three: Center’s Jurisdiction and General Principles
Article (6) – Center’s Jurisdiction:
The Center shall have jurisdiction over disputes related to real estate activities arising within the territory of the Kingdom of Saudi Arabia, whether between natural or legal persons, provided that the parties have agreed in writing, either in their contract or through a subsequent agreement, to arbitrate under the Center’s framework.
Article (7) – Principles Governing the Center:
The Center shall conduct its operations in accordance with the following fundamental principles:
1. Justice
2. Integrity
3. Efficiency
4. Accessibility
5. Procedural Simplicity
6. Prompt Resolution
Chapter Four: Administrative and Organizational Structure of the Center
First Branch –
The Board
Article (8) – Board Formation:
The Center shall be governed by a Board composed of a Chairman and six (6) members, appointed by a decision of the Chairman of the Authority’s Board.
Article (9) – Powers and Responsibilities of the Board:
The Board shall oversee the general management of the Center and shall have the following specific powers:
1. Establishing the Center’s general policies.
2. Appointing the Secretary-General of the Center.
3. Amending the Center’s Bylaws.
4. Approving the Center’s procedural rules, guidelines, and the code of conduct.
5. Proposing and approving the Center’s annual budget.
6. Approving the Center’s administrative and financial regulations.
7. Approving the Center’s annual report.
8. Approving the Center’s administrative and organizational structure.
9. Appointing a financial auditor.
10. Approving lists of arbitrators, conciliators, and experts.
11. Determining administrative fees, as well as fees for arbitrators, conciliators, and experts.
12. Authorizing the establishment of permanent or temporary branches of the Center.
13. Approving amendments to the Center’s procedural rules, guidelines, and code of conduct.
14. Deciding on the dismissal or suspension of arbitrators, with the authority to delegate this power to the Secretary-General.
15. Ruling on requests to challenge arbitrators, with the authority to delegate this function to the Secretary-General.
16. Exercising jurisdiction over matters not specifically addressed in the Law.
17. Delegating any of its powers to qualified and competent individuals as deemed necessary.
18. Establishing committees in accordance with the general procedures set by the Board. Committees shall be required to transparently report their findings and decisions to the Board, which shall maintain ongoing oversight to ensure that they fulfill their assigned tasks effectively.
Article (10) – Board Member Eligibility Criteria:
1. Must be a Saudi national.
2. Must not have been convicted by a final judicial ruling in a case involving moral turpitude or dishonesty.
3. Must hold a bachelor’s degree.
Article (11) – Termination and Revocation of Board Membership:
Board membership shall be terminated in any of the following circumstances:
1. Death of the member.
2. Resignation, which must be submitted in writing to the Chairman.
3. Expiration of the membership term as stipulated in Article (12).
4. Legal incapacity of the member.
5. Violation of any provision of the Law by the member.
Article (12) – Term of Board Membership:
1. The term of a Board member shall be three (3) years, renewable.
2. In the event of a vacancy, a replacement shall be appointed or nominated in accordance with the eligibility criteria set forth in Article (10).
3. A replacement member shall serve for the remainder of the term of the vacated seat.
Article (13) – Board Meetings:
1. The Chairman of the Center shall preside over Board meetings. In the Chairman’s absence, a designated delegate shall assume this role. If neither is available, the Board shall select a meeting chair from among its members.
2. The Board shall convene at least four (4) regular meetings per fiscal year and may hold extraordinary meetings as necessary.
3. With the approval of the Board Chairman, the Secretary-General shall issue a written notice to all members at least fifteen (15) days before the scheduled meeting, including the meeting agenda and relevant attachments.
4. The Secretary-General shall attend Board meetings and may participate in discussions but shall have no voting rights.
5. The Board Chairman may invite individuals whose presence is deemed relevant to Center-related matters. Such invitees may participate in discussions but shall not have voting rights.
6. Board members wishing to propose additional agenda items must submit their requests to the General Secretariat no later than the day following receipt of the meeting invitation.
7. Board meetings may be conducted using modern communication technologies.
8. A special register shall be maintained to record meeting minutes and decisions, which shall be signed by the meeting chair and the Secretary-General.
Article (14) – Validity of Board Meetings:
1. Board meetings shall be deemed valid when attended by an absolute majority of its members.
2. If a quorum is not met, the meeting shall be postponed for a period between one (1) and twenty-four (24) hours. The rescheduled meeting shall be deemed valid with the attendance of at least one-third of the Board members, provided that the Chairman (or Deputy) and the Secretary-General are present. This exception shall not apply to meetings concerning amendments to the Bylaws, arbitration rules, or Center regulations, which shall require the attendance of an absolute majority of members.
Article (15) – Validity of Board Decisions:
1. Board decisions shall be valid if approved by an ordinary majority of members. In the event of a tie, the Chairman’s vote shall serve as the casting vote. For postponed meetings, decisions shall require unanimous approval of the attendees.
2. The withdrawal of Board members after a meeting has commenced shall not affect the validity of decisions, provided that the remaining members constitute an ordinary majority.
3. Any member with a potential conflict of interest shall recuse himself from discussions and decision-making on the relevant matter.
4. Board decisions shall take immediate effect unless the Board determines otherwise.
5. The Board may adopt decisions by circulation without convening a formal meeting, provided that a majority of members approve in writing. However, if any member requests a written discussion, the matter shall be addressed at the next Board meeting and recorded in the minutes.
Second Branch –
General Secretariat
Article (16) – Appointment of the Secretary-General:
The Board shall appoint the Secretary-General, who must hold an advanced degree in Sharia or Law.
Article (17) – Powers and Responsibilities of the Secretary-General:
The Secretary-General shall be responsible for the following functions:
1. Performing the Board’s secretariat duties.
2. Managing the Center’s executive body in legal, financial, and administrative matters.
3. Recording and maintaining Board meeting minutes.
4. Submitting an annual report to the Board detailing all Center activities, functions, and future plans.
5. Conducting all correspondence and communications with relevant entities both within and outside the Kingdom.
6. Selecting the Center’s administrative staff.
7. Proposing organizational regulations for the Center’s operations and presenting them to the Board for approval.
8. Proposing amendments to the Center’s procedural rules and submitting them to the Board for approval.
9. Overseeing the receipt and processing of arbitration and dispute settlement requests through conciliation and mediation, ensuring all required documents are complete before referral to the head of the Arbitration Office or Conciliation and Mediation Office.
10. Supervising the annual publication of lists of arbitrators, mediators, and conciliators, along with their names and professional credentials.
11. Overseeing the maintenance of a special register for recording arbitration and dispute settlement requests.
12. Supervising the development of an integrated system for archiving and preserving all arbitration decisions.
13. Managing the receipt and response to all correspondence related to arbitration and dispute settlement requests.
14. Ensuring timely notification to parties regarding arbitration sessions, including schedules and venues.
15. Signing on behalf of the Center within the scope of the administrative authority granted under the Law, Center rules and regulations, and Board decisions.
16. Delegating powers to the Center’s administrative staff as necessary.
17. Performing any additional tasks assigned by the Board.
Third Branch –
Obligations of Board Members and the Secretary-General
Article (18) – Obligations of Board Members and the Secretary-General
1. Board members and the Secretary-General shall maintain independence, objectivity, and neutrality in the performance of their duties at the Center. They shall also adhere to the Center’s Bylaws, regulations, and decisions.
2. The Board members and Secretary-General shall maintain confidentiality in their work, and shall commit to avoiding any situations of conflict of interest and shall be obligated to disclose such conflicts.
3. No Board member, Secretary-General, or any member of the administrative body shall be entitled to perform arbitration work at the Center or serve as experts, mediators, or attorneys.
4. Board members and Secretary-General shall, prior to commencing their duties, sign a pledge stipulating the obligations contained in this Article.
Chapter Five
Arbitration Tribunal and Arbitrator Lists
Article (19) - Formation of Arbitration Tribunal:
The arbitration tribunal shall consist of three arbitrators or a sole arbitrator based on the following:
1. The parties shall have the freedom to choose the number of arbitrators, whereby they may select a sole arbitrator or an arbitration tribunal consisting of three arbitrators or any odd number exceeding three.
2. The Arbitration Office shall have the right to require parties to appoint three arbitrators in complex and major cases according to the discretionary authority of the Office head and the circumstances surrounding the dispute.
3. Arbitrators shall be selected only from the list of arbitrators approved by the Center.
Article (20) - Arbitrator Lists and Classification:
The Center shall maintain a list of all approved arbitrators, and may create one or more sublists aimed at distinguishing arbitrators according to years of experience, type, field, or other considerations.
Article (21) - Qualified Arbitrator in the Arbitrators List:
In addition to the conditions stipulated in the Arbitration Law for arbitrators, the Center's arbitrators must pass the Center's approved qualification program for arbitrators.
Article (22): Joining the Center's Arbitrator Lists
Joining the arbitrator lists shall be based on an application submitted to the Center according to the designated form, after meeting the conditions stated in Article Twenty-One, and obtaining the Center's approval.
Chapter Six
Center’s Budget
Article (23) - Center's Financial Resources
The Center's financial resources shall consist of:
1. Administrative fees paid to the Center for dispute resolution.
2. Membership fees from arbitrators, experts, mediators, and conciliators.
3. Annual financial support allocated to the Center by the Authority.
4. Financial returns generated from conducting courses, seminars, conferences, value of books, magazines, and all activities conducted by the Center.
5. Board-approved grants and financial contributions.
Article (24) - Center's Fiscal Year
The Center's fiscal year shall begin on January first of the Gregorian year and end on December thirty-first of the same year, except for the establishment year.
Article Twenty-Five - Approval of Center's Annual Budget
1. The Center shall appoint an external certified auditor approved by the Board.
2. The Board shall approve and ratify the Center's annual budget.
Chapter Seven
General Provisions
Article (26) - Legal Nature of Arbitration Awards and Conciliation Minutes
1. Arbitration awards issued by the Center, after being appended with enforcement order from the competent court, shall constitute an enforcement instrument pursuant to Article Fifty-Three of the Arbitration Law and Paragraph Two of Article Nine of the Saudi Enforcement Law.
2. Conciliation minutes issued by the Center, after certification by the competent judge, shall constitute an enforcement instrument pursuant to Paragraph Three of Article Nine of the Saudi Enforcement Law.
3. Arbitration awards issued by the Center shall be final and not subject to appeal by any means, except through nullification action according to cases specified in Article 50 of the Saudi Arbitration Law issued in 1433H.
Article (27) - Amendment of Bylaws
Any amendment to the Bylaws and any amendment to all internal regulations shall be within the Board's jurisdiction and require two-thirds member approval.
Article (28) - Center's Official Language
The Center's official language shall be Arabic, used in all communications and correspondence. English may be used when needed, with an approved English version of the Bylaws and other regulations available, but the Arabic version shall prevail in case of any discrepancy.
Article (29) - Communications and Correspondence
1. All communications, claims, and correspondence stipulated in the Law, regulations, approved rules, or any other dispute resolution procedures must be in writing (unless exempted by Center's arbitration procedures and rules), and may be conducted electronically through Center-approved electronic communication means.
2. Communication shall be effective from the day following its receipt by the addressee.
Article (30) - Law Effectiveness
The Law shall be effective from its publication date.
Article (1) Center's Function:
The Center adjudicates disputes referred to it through an arbitration tribunal in accordance with these Rules.
Article (2) Definitions:
In the application of these Rules, the following terms and words shall have the meanings ascribed to them, unless the context requires otherwise:
1. Authority: The Real Estate General Authority
2. Center: The Saudi Real Estate Arbitration Center
3. Law: The Bylaws of the Saudi Real Estate Arbitration Center
4. Rules: The Procedural Rules of the Saudi Real Estate Arbitration Center
5. Arbitration Law: The Saudi Arbitration Law
6. Arbitration Agreement: The parties' written agreement to resort to arbitration, whether in the form of an arbitration clause within a contract or in the form of a separate arbitration agreement.
7. Arbitration Tribunal: The sole arbitrator or panel of arbitrators who adjudicate the dispute referred to arbitration.
8. Case: Any dispute submitted by one party against another that falls within the Center's jurisdiction.
9. Parties: The parties to the arbitration dispute, namely the claimant and respondent; either party may consist of more than one person,
10. Case Registration: The electronic registration of the case with the Center.
11. List: The list of arbitrators' names at the Center.
12. Arbitration Award: The final, partial, or interim award issued in the arbitration case.
13. Correspondence: Includes, without limitation, notifications, pleadings, memoranda, requests, inquiries and responses thereto, notices, evidence, and any documents, records, or attachments submitted or requested from any of the parties, arbitration tribunal, expert, or the Center.
Article (3) Arbitration Agreement:
1. The parties' agreement to refer their disputes to the Center shall constitute an agreement to resolve such disputes through arbitration at the Center and acceptance of the Center's administration of such arbitration in accordance with its procedural rules.
2. The parties' agreement to refer to arbitration shall be through the Center's platform.
3. The Center shall presume the validity of all arbitration agreements and conditions submitted to it unless proven invalid by one of the parties.
4. The arbitration tribunal shall have jurisdiction to decide all matters relating to the Center's jurisdiction in adjudicating the dispute referred to it.
5. Arbitration at the Center shall be conducted in accordance with these procedural rules, without limiting the parties' authority to choose additional arbitration procedures before the Center, provided such additional procedures do not conflict with the Center's rules or affect the powers of the Center or arbitration tribunal as stipulated in the Law.
6. The arbitration tribunal shall ensure fair treatment of parties and equal opportunity in all procedures, correspondence, and everything that enables parties to present their case in a manner suitable for consideration and judgment.
7. An arbitration clause contained in a contract and relied upon in referring to arbitration at the Center shall be considered independent from other contractual terms and contents. The invalidity, termination, or cancellation of such contract shall not result in the invalidity of the arbitration clause contained therein, provided such clause is valid per se.
Article (4) Party Representation:
Each party may appoint attorneys or others to represent them in the case, provided that the Center is notified and the representative registers through the Center's platform as a party representative.
Article (5) Correspondence, Notification, and Time Calculation:
1. Correspondence to and from the Center shall be addressed to the Secretary-General.
2. Correspondence shall be sent to the party to be notified or their representative through the Center's platform.
3. Notification of correspondence and attached documents shall be deemed legally effective upon delivery to the intended recipient through the Center's approved electronic means.
4. Time periods and deadlines shall commence from the day following the date of notification or correspondence pursuant to paragraphs (2) and (3) of this Article. If the following day is an official holiday, the period or deadline shall commence from the first subsequent working day. Official holidays occurring within periods or deadlines shall be included in the calculation.
5. Parties may, with the arbitration tribunal's approval, agree to shorten the time periods specified in these rules, provided such agreement is made immediately upon the formation of the arbitration tribunal.
Article (6) Request for Arbitration:
1. A party seeking to initiate arbitration at the Center shall pay the registration fees and electronically submit their case through the Center’s platform. The submission must include a detailed description of the case, a clear statement of the claims, and all supporting documents, along with a copy of the arbitration agreement (whether a clause or a submission agreement) relied upon. The Center shall then notify both the claimant and the respondent of the case registration and its date.
2. If the form is not completely filled or a copy of the arbitration agreement and supporting documents are not attached, the Center shall strike out the request. The case shall not be considered registered with the Center and requires new registration.
3. The registration of a case with the Center and payment of the prescribed fees shall constitute the claimant's formal request to refer the dispute to arbitration at the Center.
4. The date of proper case registration with the Center shall be considered the commencement date of arbitration proceedings.
Article (7) Response to Arbitration Request:
The respondent shall submit its response to the arbitration request within five (5) business days from the date of receipt, providing the following information:
1. The respondent’s full name, capacity, and address, along with the same details for any representative.
2. Any objection to the validity of the arbitration agreement, supported by relevant documentation.
3. An initial comment on the case and its subject matter.
4. A preliminary response to the claimant’s requests.
5. Copies of any correspondence deemed relevant to the case.
6. Failure to submit a response shall not preclude the continuation of the arbitration proceedings.
Article (8) – Interim Measures:
After the formation of the arbitration tribunal, any party may request interim measures by submitting a request through the Center’s platform, outlining the reasons, justifications for urgency, and supporting documents. The tribunal shall decide on the request within five business days. If the interim measure is approved, the tribunal shall notify the respondent and allow them an opportunity to respond within an additional five business days, after which a final decision on the request shall be issued within a maximum of five business days.
Article (9) – Amendment of Claim or Defense:
Either party may amend or supplement their claim or defense at any stage of the arbitration proceedings through the Center’s platform, provided the amendment falls within the tribunal’s jurisdiction. The arbitration tribunal may reject such amendments or additions if it determines that they would cause prejudice to any party or if other circumstances, based on the case’s specifics, warrant rejection.
Article (10) – Communication with Parties:
Any communication the Center deems necessary to relay to the parties shall be conducted exclusively through the Center’s platform.
Article (11) – Formation of the Arbitration Tribunal:
1. The arbitration tribunal shall be constituted based on the parties’ agreement to appoint one or more arbitrators, provided that the number is odd.
2. If the parties fail to agree on the number of arbitrators, the tribunal shall consist of a sole arbitrator unless the Center determines that appointing multiple arbitrators is more appropriate based on the dispute’s monetary value or complexity.
3. If the parties agree to appoint a sole arbitrator, they must nominate one within one business day from the date the respondent is notified of the arbitration request. If they fail to reach an agreement within this period or any extension granted by the Center, the Center shall appoint the sole arbitrator.
4. If the parties agree to appoint a tribunal consisting of multiple arbitrators, and each party selects their arbitrator, the selected arbitrators must nominate the third arbitrator within two business days from the date of the last arbitrator’s selection. If they fail to do so, the Center shall appoint the third arbitrator.
5. The third arbitrator chosen by the parties shall serve as the chairman of the arbitration tribunal.
6. The parties may also agree to form the arbitration tribunal with the Center’s assistance.
Article (12) – Independence of Arbitrators:
1. Arbitrators appointed to the arbitration tribunal shall, through the Center’s platform, formally declare their acceptance of the appointment, confirm that they have no interest in the dispute, and disclose any circumstances that may give rise to justifiable doubts regarding their independence and impartiality.
2. Arbitrators shall, at any stage of the arbitration proceedings, disclose through the Center’s platform any newly arising circumstances related to their independence and impartiality as stipulated in the preceding paragraph.
Article (13) – Challenge of Arbitrators:
1. Either party may, within five (5) days of being notified of an arbitrator’s appointment, submit a memorandum through the Center’s platform to the Secretary-General, requesting the arbitrator’s disqualification and stating the grounds for the challenge.
2. The Secretary-General shall forward the challenge request to the arbitration tribunal and the parties through the Center’s platform, allowing them five (5) days to submit their observations.
3. In all cases, the Center shall issue a final, reasoned decision on the challenge request within ten (10) days of transmitting the request to the parties and the arbitration tribunal.
Article (14) – Replacement of Arbitrators:
If an arbitrator is successfully challenged, resigns, withdraws, or his position becomes vacant for any reason, the Center shall appoint a replacement arbitrator within the prescribed timeframe.
Article (15) – Referral of the Dispute File to the Arbitration Tribunal:
Upon the formation of the arbitration tribunal, the Center shall transmit the case file, including all correspondence, to the tribunal through the Center’s platform.
Article (16) – Terms of Reference:
Within two (2) business days of receiving the case file, the arbitration tribunal shall prepare the terms of reference based on the submitted correspondence and documents. This document shall include the parties’ basic information, the subject matter of the arbitration, and the tribunal’s powers. The parties shall sign and return the document to the tribunal, with electronic signatures being admissible. A party’s refusal to sign shall not preclude the continuation of the arbitration proceedings, and the absence of their signature shall be disregarded.
Article (17) – Arbitration Venue:
The Center’s electronic platform shall serve as the designated arbitration venue for all proceedings.
Article (18) – Language of Arbitration:
1. The language of arbitration shall be the language stipulated in the arbitration agreement unless the parties agree otherwise.
2. If the arbitration agreement is drafted in multiple languages, the arbitration tribunal shall determine the language of arbitration from among the languages specified in the agreement.
3. If a party submits correspondence in a language other than the designated arbitration language, the tribunal may require that party to provide a translation and resubmit the correspondence accordingly.
4. The arbitration award shall be rendered in the language of the arbitration proceedings. If the proceedings are conducted in a language other than Arabic, the award must be translated into Arabic.
Article (19) – Conduct of Arbitration Proceedings:
1. The arbitration tribunal shall conduct the proceedings in a manner it deems appropriate, ensuring the efficient resolution of the dispute while upholding the principle of equal treatment of the parties.
2. The chairman of the tribunal, with the tribunal’s authorization, shall have full discretion in deciding procedural matters, provided such decisions do not contravene these Rules.
3. At any stage of the proceedings, the tribunal may require any party to submit additional documents, provide further information, or respond to specific inquiries through the Center’s platform.
4. The tribunal shall ensure that copies of all correspondence, documents, or memoranda submitted by one party are promptly transmitted to the other party through the Center’s platform.
Article (20) – Management of Hearings:
1. The arbitration tribunal shall convene an initial hearing within two (2) business days maximum through the Center’s platform.
2. The tribunal may conduct hearings by any means it deems appropriate, including modern communication technologies.
3. When scheduling a hearing, the tribunal shall notify the parties at least two (2) business days in advance, regardless of whether the hearing is conducted in person or through modern communication methods.
4. The absence of a duly notified party shall not preclude the hearing from proceeding.
5. Pleadings before the tribunal shall be conducted in accordance with the tribunal’s determined procedures, without prejudice to the submission of statements or defenses in written memoranda through the Center’s platform. Such memoranda shall be exchanged between the parties, with the originals retained in the case file. The tribunal shall grant the parties specific timeframes to review and respond to documents and memoranda.
6. If deemed necessary, the tribunal may request authorization to conduct an inspection of any location relevant to the dispute.
Article (21) – Confidentiality of Arbitration Proceedings:
All arbitration proceedings shall be strictly confidential and restricted to the parties, the arbitration tribunal, and relevant administrative staff of the Center. The tribunal may impose additional measures to safeguard the confidentiality of the proceedings, as well as any documents and correspondence submitted during the sessions.
Article (22) – Applicable Rules:
The arbitration tribunal shall adjudicate disputes referred to it in accordance with the Center’s Procedural Rules and the Bylaws.
Article (23) Witnesses:
1. Each party shall have the right to present witnesses to establish facts relevant to the subject matter of the arbitration. A party seeking to do so shall submit a reasoned request detailing the witness’s contact information and evidence demonstrating the witness’s connection to the case. The party may request a period not exceeding two (2) business days to produce the witness. If the witness is not produced within this timeframe, a final opportunity of no more than one (1) additional business day may be granted. Thereafter, the arbitration tribunal shall determine the appropriate course of action regarding the witness.
2. The arbitration tribunal shall have full discretionary authority to determine the appropriate method for hearing witness testimony and may utilize modern communication technologies for this purpose.
3. The parties may examine witnesses in accordance with the method established by the arbitration tribunal for witness testimony.
4. Testimony may be submitted in writing if so decided by the tribunal. In such cases, parties may submit their inquiries regarding the testimony in writing, and the witness shall respond in the same manner.
5. Witness testimony hearings shall remain confidential unless the arbitration tribunal decides otherwise.
6. The language of arbitration shall be the language used for witness testimony. If testimony is submitted in writing in a different language, it shall be translated into the designated arbitration language.
Article (24) – Experts:
1. The arbitration tribunal may, either on its own initiative or at the request of the parties, appoint one or more experts to address specific issues as determined in its decision, which shall be communicated to all parties. The appointed expert shall submit a written report in accordance with the tribunal’s instructions.
2. The tribunal shall ensure that the parties are given the opportunity to discuss and examine the expert regarding the findings in the expert report.
3. If an expert appointment is requested by one or both parties, the tribunal shall assess the merits of the request and issue a decision approving or rejecting it within one (1) business day.
4. The tribunal shall determine the expert’s fees and may allocate them to the losing party or apportion them equally between the parties.
Article (25) – Request for Information and Assistance:
1. The arbitration tribunal may request the Center to provide any document, information, or record necessary to assist in the adjudication of the case.
2. The tribunal may seek the Center’s assistance in facilitating arbitration proceedings, including but not limited to summoning witnesses or appointing experts, as deemed appropriate for the proper conduct of the proceedings.
Article (26) – Burden of Proof:
1. Each party shall bear the burden of proving the facts, documents, or correspondence upon which it relies in support of its claims.
2. The facts to be established, as well as the submitted documents and correspondence, shall be relevant to the case, materially significant, and legally and procedurally admissible.
3. The arbitration tribunal shall have full discretion in adopting evidentiary procedures appropriate to the nature of arbitration.
4. If a document is challenged on grounds of forgery, the tribunal may temporarily suspend the arbitration proceedings and refer the disputed document to the competent judicial authority for adjudication.
Article (27) – Parties' Memoranda:
1. Each party may submit its defenses through the Center’s platform, and the opposing party may respond to the submitted memorandum using the same platform or any other method approved by the arbitration tribunal.
2. Any response to a received memorandum shall be submitted within five (5) business days from the date of receipt.
3. All memoranda shall be drafted in the designated arbitration language; otherwise, the submitting party shall provide a translation into the arbitration language.
4. The tribunal may, when deemed necessary, extend the prescribed period for responding to a memorandum submitted by a party.
Article (28) – Closure of Pleadings:
1. The arbitration tribunal shall declare the closure of pleadings once the parties confirm that they have submitted all materials relevant to the case. The tribunal may also close pleadings on its own initiative if it determines that all necessary case materials have been submitted.
2. Once pleadings are closed, no further correspondence or memoranda may be submitted unless specifically requested by the tribunal.
3. Upon the closure of pleadings, the tribunal shall determine and announce the timeframe for issuing the arbitration award or, as circumstances require, the draft award.
Article (29) – Time Limit for Issuing the Arbitration Award:
1. The arbitration tribunal shall issue its award within the approved timeframe from the date of case referral. The tribunal may extend this period if it determines that the nature of the case necessitates additional time for resolution.
2. If a challenge alleging forgery is submitted and the disputed document is referred to the competent authority, and if the resolution of the case depends on the outcome of such a challenge, the tribunal may postpone the issuance of the award until the result of the forgery determination is received. Upon receipt of the result, the specified timeframe for issuing the arbitration award shall resume.
Article (30) – Issuance of the Arbitration Award:
1. In tribunals composed of multiple arbitrators, the award shall be rendered by majority vote following confidential deliberations.
2. If the tribunal is unable to reach a majority decision, and a tie results, the tribunal shall appoint a tie-breaking arbitrator within fifteen (15) days of determining that a majority cannot be reached. If the tribunal fails to do so, the competent court shall appoint the tie-breaking arbitrator.
3. Procedural decisions may be issued by the presiding arbitrator if the parties to the arbitration have provided written authorization or if all tribunal members consent, unless the parties agree otherwise.
4. If the tribunal is authorized to engage in conciliation, the award shall be issued unanimously.
5. The tribunal may issue interim or partial awards before rendering the final award, unless the parties have agreed otherwise.
6. The arbitration award shall be issued in writing in the designated arbitration language.
7. The award shall include the date and place of issuance, the names and addresses of the parties, the names, addresses, nationalities, and capacities of the arbitrators, a summary of the arbitration agreement, a summary of the parties’ defenses, requests, and submitted documents, a summary of any expert report if applicable, the reasoning upon which the award is based, the tribunal’s final pronouncement of the award, the determination of arbitrators’ fees and arbitration expenses, and the allocation of such expenses among the parties.
8. An original copy of the award shall be deposited with the Center, and each party shall receive a copy, without prejudice to any party’s right to request additional copies.
9. If the parties reach a settlement before the issuance of the final award, the settlement shall be recorded in the case file and may, with the tribunal’s approval, be issued as an arbitration award.
10. The award, or any part thereof, shall not be published without the written consent of the parties.
11. If the award is issued in a language other than Arabic, it must be translated by an accredited entity, and the translation shall be attached to the original copy deposited with the Center.
Article (31) – Award Correction:
1. The arbitration tribunal may, either upon the request of a party or on its own initiative, correct any purely material, clerical, or computational errors in the award.
2. If a party submits a request for correction, it must do so within fifteen (15) days of receiving the award. The tribunal shall review the request within two (2) business days of receipt and, if deemed valid, shall make the necessary correction within the following two (2) business days.
3. The correction shall be issued in writing as a decision signed by all tribunal members and shall form an integral part of the arbitration award.
Article (32) – Award Interpretation:
1. If the pronouncement of the award contains any ambiguity or lack of clarity, either party may request an interpretation from the tribunal within fifteen (15) days of receiving the award.
2. The tribunal shall review the request and render a decision within two (2) business days of receipt. If interpretation is required, a written decision shall be issued within the following four (4) business days.
3. The interpretation shall be issued as a formal decision and shall be deemed an integral part of the arbitration award.
Article (33) – Authority of the Arbitration Award:
The arbitration tribunal’s award shall have res judicata effect and shall be enforceable. It shall not be subject to appeal except through a nullification action in accordance with the provisions of the Saudi Arbitration Law.
Article (34) – Termination of Arbitration Proceedings:
Arbitration proceedings shall terminate upon the issuance of a final award or by a decision of the tribunal in any of the following cases:
· The parties reach a written agreement to terminate the arbitration.
· The claimant abandons the arbitration, unless the tribunal determines that the respondent has a legitimate interest in its continuation.
· The tribunal finds that the continuation of the proceedings has become futile for any reason.
Article (35) – Limitation of Liability:
The Center, its employees, the arbitration tribunal, its members, and any appointed experts shall not be liable to any party for any act or omission in connection with the arbitration.
Article (36) – Confidentiality:
The parties and the tribunal shall maintain the confidentiality of all arbitration proceedings, including deliberations, memoranda, correspondence, expert reports, witness testimony, and the award, unless the parties agree otherwise or disclosure is officially required.
Article (37) – Amendment of Rules:
The Center shall have the authority to amend these Rules. Any amendments shall become effective upon their publication on the Center’s website (electronic portal).
Article (38) – Effectiveness of Rules:
These Rules shall take effect from the date of their adoption.
Center's Jurisdiction:
The Center has jurisdiction over disputes related to real estate activities arising within the Kingdom of Saudi Arabia's territories, whether between natural or legal persons, provided that the parties have agreed in writing in their contract or in a subsequent agreement to arbitrate within this Center's framework.
Basic Requirements for Case Filing:
1. Ejar Program:
- Claimant information (Name - National ID number - Contact number - Email - Capacity)
- Respondent information (Name - National ID number - Contact number - Capacity)
- Lease contract details (Lease contract number - Unified lease contract (notarized))
- Case title (Subject matter)
- Case description (Complete explanation of case details)
- Financial dispute (Specifying disputed amount)
- Case requests (Purpose of filing)
- Supporting attachments for case purpose (if any)
- The following disputes fall outside the Center's jurisdiction:
- Criminal disputes.
- Rent payment and eviction pursuant to lease contract if it constitutes an enforcement instrument.
- Cases pending before courts.
2. Mullak Program:
- Claimant information (Name - National ID number - Contact number - Email - Capacity)
- Respondent information (Name - National ID number - Contact number - Capacity)
- Association details (Association name - number - address - registration certificate - establishment letter - bylaws)
- Case title (Subject matter)
- Case description (Complete explanation of case details)
- Financial dispute (Specifying disputed amount)
- Case requests (Purpose of filing)
- Supporting attachments for case purpose (if any)
- The following disputes fall outside the Center's jurisdiction:
- Criminal disputes
- Cases pending before courts
3. Off-Plan Sale and Lease Program:
- Claimant information (Name - National ID number - Contact number - Email - Capacity)
- Respondent information (Name - National ID number - Contact number - Capacity)
- Off-plan sale and lease contract
- Case title (Subject matter)
- Case description (Complete explanation of case details)
- Financial dispute (Specifying disputed amount)
- Case requests (Purpose of filing)
- Supporting attachments for case purpose (if any)
- The following contracts and disputes fall outside the Center's jurisdiction:
- Criminal disputes
- Cases pending before courts
4. Real Estate Brokerage Program:
- Claimant information (Name - National ID number - Contact number - Email - Capacity)
- Respondent information (Name - National ID number - Contact number - Capacity)
- Brokerage contract
- Case title (Subject matter)
- Case description (Complete explanation of case details)
- Financial dispute (Specifying disputed amount)
- Case requests (Purpose of filing)
- Supporting attachments for case purpose (if any)
- The following disputes fall outside the Center's jurisdiction:
- Criminal disputes
- Cases pending before courts
5. Saudi Contractors Authority:
- Claimant information (Name - National ID number - Contact number - Email - Capacity)
- Respondent information (Name - National ID number - Contact number - Capacity)
- Construction contracts
- Case title (Subject matter)
- Case description (Complete explanation of case details)
- Financial dispute (Specifying disputed amount)
- Case requests (Purpose of filing)
- Supporting attachments for case purpose (if any)
- The following contracts and disputes fall outside the Center's jurisdiction:
- Criminal disputes
- Cases pending before courts