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.
