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Prompt resolution of trade disputes, particularly within Saudi Arabia, is crucial to ensuring business continuity. Delays, protracted litigation, and high legal costs can drain resources and distract from core activities. Arbitration offers a faster, more flexible, and easier-to-implement alternative—and can be economical when managed efficiently.
Sadany & Partners Law Firm offers affordable arbitration services in Riyadh, aimed at local and international companies seeking professional legal support without disruption or high costs. We explain below the advantages of arbitration, the process expectations, and how to effectively control costs.
Why Arbitration in Riyadh May Be More Affordable Than You Think
- A modern and effective framework
The Saudi Commercial Arbitration Center (SCCA) handles numerous arbitration cases in Riyadh, under its 2023 Rules, which promote streamlined procedures, remote hearings, and cost transparency.
Example:
- The SCCA provides a fee calculator to estimate administrative fees and arbitrator costs based on the "Disputed Amount."
- The Rules provide for an expedited procedure for cases with a value of less than SAR 4 million (approximately US$1.07 million), thereby reducing time, burden, and cost.
- Transparent cost structure
- Registration fees at the SCCA (SAR 5,000) upon filing the notice of arbitration.
- Administrative and arbitration fees are calculated according to fixed schedules (based on the amount in dispute) and are shared equally by the parties (unless the arbitration award specifies otherwise).
- Since SCCA fees are reportedly much lower than those of many international institutions (such as the ICC) for equivalent claim values, arbitration in Riyadh is a more cost-effective option.
- Proactive legal strategy
Our team focuses on cost optimization from the outset by:
- Developing clear arbitration clauses and dispute resolution frameworks to avoid unexpected outcomes.
- Providing advice on the seat of arbitration, language (English/Arabic), and institution, in line with our clients' business context.
- Encouraging mediation or early settlement where appropriate, and avoiding forming large tribunals for small claims.
- Using remote hearings and efficient document exchange to reduce travel, expert, and logistical costs.
What does "affordable arbitration services" look like in practice?
At Sadany & Partners Law Firm, we adopt a clear methodology that focuses on efficiency and transparency to deliver real value to our clients:
- Structured pricing and cost control
We offer fixed or milestone-based fee structures, so the client can easily identify the cost at each stage. Example: The arbitration notice drafting, arbitrator selection, case preparation, and hearing management; giving the client early clarity on their budget.
We effectively manage legal and expert costs to ensure that the client does not incur any undue costs.
- Urgent procedures for less costly disputes
If the claim amount is less than SAR 4 million, the SCCA applies urgent procedures – fewer stages for submitting documents, a tribunal of limited size, and shorter timelines for achieving formula (less time = lower cost).
Furthermore, in higher-value cases, we focus on efficient case management to keep costs within reasonable limits.
- Virtual/remote hearings and efficient logistics services
We engage in virtual hearings, online document sharing, and support from local attorneys. This reduces travel burdens and logistical costs, especially for international clients.
- Cost forecasting and transparent monitoring
We provide a detailed description of potential costs, including registration fees, administrative fees, arbitrators' and legal experts' fees, lawyers' hours, translation and certification costs, and enforcement costs. This helps you proactively understand the accumulation of costs and control mechanisms.
- Feasibility-centered Methodology
Success is far from guaranteed once a judgment has been obtained; enforcing it within or outside Saudi Arabia may require additional expenses if proper planning is lacking. We integrate the delivery plan into the strategy from the outset to avoid unexpected costs.
Example: Affordable arbitration in Riyadh
A regional SME was involved in a contractual dispute with a Saudi buyer over SAR 3.5 million. The contract stipulates arbitration at the SCCA in Riyadh and the language of arbitration (English).
As part of our methodology:
- We prepared and submitted the arbitration notice to SCCA along with the registration fee of SAR 5,000.
- We have activated the expedited procedures because the value of the dispute is below the threshold (which is SAR 4 million).
- The tribunal was composed of a sole arbitrator, with reduced hearing time and the use of virtual meetings.
- We agreed in advance on fixed allowances for experts and the use of concise, well-written documents.
- We managed to make the total cost significantly lower than the cost of large-scale arbitration of major cases.
- We obtained a summary judgment that allows for a quick start to enforcement and maintains business continuity.
The following points efficiently help to manage arbitration costs in Riyadh:
- Adopting the fastest option available, including urgent procedures when the conditions are met (less than SAR 4 million).
- Appointing a sole arbitrator instead of a three-member tribunal, unless the complexity of the case requires otherwise.
- Appointing local consultants with expertise in international issues to reduce external expenses.
- Conducting remote sessions if permitted by the authority to reduce travel and costs.
- Defining the expert's exact scope and agreeing on fixed fees where possible.
- Planning for an implementation budget early, as costs increase with international procedures.
- Choosing the location, language, and rules to reduce translation and logistical expenses.
- Specifying the cost allocation mechanism in the arbitration clause (e.g., Costs are borne by the loser or distributed equally to limit financial risk.)
Why Sadany & Partners Law Firm?
- We hold an official license to plead before Saudi arbitration and judicial bodies, including the SCCA and the Enforcement Courts.
- We have a bilingual team (Arabic and English) with experience in arbitration within the Kingdom and internationally.
- We adopt a transparent fee structure and a cost-cutting approach.
- We have extensive experience in managing low-cost arbitrations and major disputes, always committed to effective, quality-preserving solutions.
- Our local presence in Saudi Arabia supports you by facilitating negotiations, meetings, and implementation without the cost of overseas offices.
Conclusion
Trade disputes should not turn into lengthy proceedings or a significant financial burden. With the right legal partner and arbitration body, arbitration in Riyadh becomes an economical, efficient, and easy-to-implement option.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.