The Refusal of the Recognition and Enforcement of Foreign Arbitral in Saudi Arabia - Dissertation Example

Investors, therefore, require that their investments be situated where legal remedies, in the form of arbitration that results in arbitral awards, are available in the case of commercial disputes.This study investigates the viability of Saudi Arabia as a destination for international commercial activity, by examining its legal framework that allows for arbitration and enforcement of awards, as well as the socio-political implications of the nature of this framework. The qualitative research method was utilized in order to best appreciate the factors that affect the choice of a legal framework, such as attitudes, motivations, intentions, and opinions.

Qualitative data analysis was employed in the literature surveyed and the qualitative information available through the public domain. The findings reveal that Saudi Arabia’s stringent policies on international arbitration and its predisposition to refuse the enforcement of foreign arbitral awards contradicts its intention to establish a more investment-friendly business environment, and based on the experience of its neighboring Arab countries, it may be possible to institute reforms while maintaining loyalty to Shari’a principles.

This chapter introduces the topic of study, its contextual background, the scope and delimitation of its coverage, and the purpose and significance of its intended findings. The methodology by which the findings are arrived at is also explained in order to lay the foundation for an assessment of the validity and reliability of its findings.Arbitration is a means of settling a dispute out of court. It is reported to if the parties are unable to reach an agreement among themselves and necessitate the participation of an interested third party.

Where the quarrel could not be settled among the parties or with the intervention of a third party as an arbitrator, the alternative would be litigation proceedings before a court of law, which usually entails a long period of time, is expensive.