Document background
The Alternative Dispute Resolution Agreement serves as a crucial legal instrument for businesses operating in Saudi Arabia who wish to establish efficient and confidential means of resolving commercial disputes outside the court system. This document becomes particularly relevant when parties seek to maintain business relationships while having a clear framework for addressing disagreements. The agreement must comply with Saudi Arbitration Law, Enforcement Law, and Sharia principles, while potentially incorporating international best practices where applicable. It typically includes provisions for various ADR methods, appointment of neutrals, procedural rules, cost allocation, and enforcement mechanisms. The document is especially important given Saudi Arabia's growing commercial sector and the kingdom's efforts to modernize its dispute resolution framework in line with international standards.
