Mediation In
`Ushayrah, Al Madinah

Legal Framework

Mediation in Saudi Arabia follows a developing legal framework. The Commercial Courts Law (CCL), enacted in 2020, mandates that certain commercial disputes undergo reconciliation or mediation before proceeding to litigation. This includes disputes among partners in a Mudarabah company, claims between merchants under commercial contracts with a claim value below SAR 1 million, and disputes between spouses or close relatives. In 2023, Saudi Arabia published a draft mediation law that promotes mediation as a form of dispute resolution and requires that mediation proceedings be kept confidential. The Civil Transactions Law (CTL), effective from June 2023, codifies key principles governing civil transactions and contracts, providing a clearer legal framework for interpreting contracts and potentially reducing disputes. Saudi Arabia became a founding signatory to the Singapore Convention on Mediation in 2022, demonstrating commitment to international mediation standards. The Saudi Centre for Commercial Arbitration (SCCA), established in 2014, administers mediation proceedings under its Mediation Rules (2016), which provide for a confidential, voluntary, and private process.

While Saudi Arabia operates under this legal framework, The Olive Branch's remote mediators bypass local court backlogs by providing swift, confidential, and mutually agreed-upon resolutions online.

Court System

Saudi courts actively encourage and in some cases require mediation before litigation. The Commercial Courts Law makes mediation mandatory for specific types of disputes, including certain commercial claims below SAR 1 million and family disputes between spouses or close relatives. Courts encourage parties to resort to alternative dispute resolution (ADR) mechanisms. The Ministry of Justice's Najiz.sa portal offers over 120 e-services related to mediation, enhancing access to court connected mediation services. The judiciary promotes mediation to reduce the burden of cases being filed before courts. The revitalization of Saudi Arabia's judicial system reflects the nation's adaptability to modern developments while maintaining its religious and cultural values. Courts apply Islamic Shari'ah rules in cases brought before them, and Islamic law prescribes that settlement is preferable to litigation, with courts under a duty to exhort parties to seek mediation or conciliation if possible.

Mediator Regulations

Mediator regulation in Saudi Arabia is primarily administered through the Saudi Centre for Commercial Arbitration (SCCA). The SCCA maintains a panel of mediators composed of highly regarded professionals from the business and legal communities. Candidates wishing to apply must demonstrate strong credentials, appropriate level of experience, and academic qualifications. The SCCA offers various mediator training courses throughout the year in both Arabic and English, geared towards providing trainees with mediation skills in line with best practices. Mediators on the SCCA roster must uphold the SCCA Code of Ethics for Mediators, devote sufficient time and efforts when appointed on SCCA-administered cases, and participate in continuing legal education programmes. Membership in the SCCA Mediation Roster requires payment of a one-time registration fee of SAR 1,500. Membership is provisional for one year and renewable automatically unless the member is notified that membership will not be renewed. The SCCA reserves the right to admit or refuse admission of any candidate and to remove any member from the roster at its sole discretion.

Cultural Approach

Saudi Arabia's cultural approach to mediation is deeply influenced by Islamic law and traditions. The Basic Law of Governance requires courts to apply the rules of Islamic Shari'ah in cases brought before them. Islamic law prescribes that settlement is preferable to litigation, and courts are under a duty to exhort parties to seek mediation or conciliation if possible. Religious beliefs and traditions are relevant to conflict control and reduction, including relevant resources in Islamic law and tradition. The revitalization of Saudi Arabia's judicial system reflects the nation's adaptability to modern developments without compromising its religious and cultural values. Mediation has witnessed significant growth and acceptance in Saudi Arabia as a reliable means of dispute resolution, balancing modern legal developments with traditional Islamic principles of reconciliation and amicable settlement.

Typical Costs

Mediation costs in Saudi Arabia are structured through the SCCA fee schedule. Each Request for Mediation must be accompanied by a filing fee of 1,000 SAR, which is non-refundable. The mediator fee is to be determined in accordance with Article 4 of the SCCA fee appendix. Parties are also responsible for reasonable travel and other expenses incurred by the mediator and/or the SCCA. For mediator roster membership, there is a one-time registration fee of SAR 1,500. The SCCA reserves the right to require, revise, or waive an annual membership fee for any or all of its members. The SCCA provides a fee calculator on its website to help parties estimate costs. Costs are typically shared between parties unless otherwise agreed. The cost savings compared to litigation are significant, as mediation aims to provide a more efficient and cost effective alternative to lengthy court proceedings.