Vienna, October 14, 2024 – The Saudi Center for Commercial Arbitration (SCCA) proudly represented the Kingdom of Saudi Arabia at the 80th session of the UNCITRAL Working Group II on Dispute Settlement, recently held in Vienna. This significant session saw participation from 63 UNCITRAL member states and various international organizations, highlighting the global commitment to enhancing dispute resolution frameworks.
A central focus of the 80th session was the recognition and enforcement of electronic arbitral awards, an increasingly relevant topic as technology becomes integral to commercial dispute resolution. In response to this trend, UNCITRAL tasked Working Group II with identifying the challenges posed by these technologies and exploring viable solutions to enhance their effectiveness and acceptance.
To facilitate deeper discussions, the Working Group held a two-day colloquium at UN Headquarters dedicated to the digitalization of arbitration, in light of modern international practices. This colloquium concentrated on crucial topics including electronic arbitral awards, electronic signatures, and digital communications. The SCCA, standing out as the only arbitration center from the Middle East and North Africa region, actively participated alongside other major international arbitration institutions. This engagement provided a platform to share insights and experiences in adopting digital methods for the issuance and signing of arbitral awards, as well as to address associated challenges.
During a panel discussion titled "Electronic Arbitral Awards from the Perspective of Arbitration Centers," SCCA CEO Dr. Hamed bin Hassan Merah emphasized the digital components embedded in the SCCA’s operational rules and practices. He noted that the term "electronic" is mentioned 12 times in the 2023 version of the SCCA Arbitration Rules, which exemplifies the organization’s commitment to modernization. For instance, Article 25 actively encourages the use of technology in managing arbitration cases, while Article 36 allows for the issuance of arbitral awards electronically, provided that all parties consent.
Dr. Merah elaborated on the practical application of this digital approach throughout various stages of the arbitration process. From the submission of arbitration requests—often done electronically—to the exchange of documents, evidence, and communications among the SCCA, the arbitral tribunal, and the involved parties, the entire process has increasingly transitioned to digital formats. He highlighted that since the implementation of the 2023 SCCA Arbitration Rules, a vast majority of arbitral awards have been distributed to parties via email, with hard copies provided only upon request or when necessary to meet jurisdictional requirements.
Emphasizing the supportive digital environment in Saudi Arabia, Dr. Merah pointed out that this transformation is facilitated by executive, judicial, and legislative frameworks that encourage the use of technological tools and applications in commercial dispute resolution. He stated, "Saudi Arabia is rapidly transitioning toward electronic government applications," a fact reflected in the country’s remarkable ascent in relevant international indexes. Notably, the United Nations E-Government Development Index saw Saudi Arabia jump from 52nd place globally in 2018 to 4th place globally and 1st regionally in 2024.
In discussing the judicial landscape, Dr. Merah reported a significant increase in digitalized justice services, rising from 30% in 2015 to 87% in 2024. Currently, 160 judicial services are offered electronically through the Najiz platform of the Ministry of Justice, which includes the electronic submission of arbitral awards and motions for annulment or enforcement of both local and international arbitral awards.
On the legislative front, Dr. Merah underscored Saudi Arabia’s comprehensive regulatory framework aimed at facilitating digital transformation across government services, aligning with best international standards and practices. He highlighted key legislative measures such as the Electronic Transactions Law, the E-Commerce Law, and the Telecommunications and Information Technology Act, which collectively underpin the nation’s commitment to embracing technological advancements in various sectors.
Through its active participation in the UNCITRAL Working Group II, the SCCA not only showcases Saudi Arabia’s commitment to modernizing arbitration practices but also positions the Kingdom as a leader in adopting digital solutions that enhance the efficiency and effectiveness of commercial dispute resolution on a global scale.
