RIYADH: Saudi enforcement courts have undertaken 297 applications for the enforcement of foreign rulings, and local and foreign arbitration awards worth SR2.4 billion (nearly $640 million) in total in 2021.
“The Saudi judiciary works to enforce foreign rulings and arbitration awards under reciprocal international agreements,” the Saudi Arabian Ministry of Justice said. “The goal is to ensure rights and contracts, enhance the business environment, and attract foreign investment.”
According to the ministry’s statistics, the value of local arbitration awards filed for enforcement has reached SR1.1 billion, while the value of foreign arbitration awards and rulings has reached about SR1.3 billion.
The enforcement comes as part of the Kingdom’s commitment to apply international judicial agreements. Saudi law provides that foreign judgments shall be enforced directly by enforcement judges, with no need for filing a new lawsuit. Under Article 9 of the Enforcement Law, foreign judgments and arbitration awards are recognized as enforcement instruments, and can be filed directly to the enforcement court after completing the statutory requirements.
Meanwhile, the commercial arbitration process in Saudi Arabia has undergone a full transformation in recent years, with advances likely to help increase foreign direct investment, as the government aims to attract hundreds of international organizations to set up regional headquarters in the Kingdom, a legal expert told Arab News.