Law

International arbitration is an established method for resolving disputes between parties involved in international commercial agreements as well as in situations where States are parties to the dispute proceedings. n.
In 1985, the Kingdom of Saudi Arabia (KSA) enacted implementing rules inorder  that commercial disputes could be resolved through the use of a third party arbitration instead of court litigation(Rawach and El-Rayez, 2006). The KSA has  likewise accepted international public treaties such as the Energy Charter Treaty, among others, and has become a member  in several international  organizations such as World Intellectual Property Organization (WIPO), among others.
However, despite the introduction of the arbitration in Saudi Arabia, restrictions in the mode of practice still limit the scope of solving disputes. This is contrary to other countries such as Singapore, China and United States of America, among others.. In these countries private institutional arbitration bodies that deal with international commercial disputes have been formed. The adoption of alternative dispute resolution in the aforementioned countries has been successful. It shows that the rule of law exists. As such, this encourages trade and investment (Harrowell, 2008).
There are several differences in the procedures and rules of arbitration of Islamic and Non-Islamic countries because of the influence of culture and religion. The analysis of arbitration practices is significant especially that KSA is a member of international organizations and a signatory to several international treaties. KSA is also a member in several bi-lateral and multilateral agreements on investments  which include the exploration of oil and gas and communications.  In these agreements, arbitration has been incorporated  as a means of dispute resolution. Hence, it is necessary to analyze whether KSAs  legal framework is  capable of accommodating  public as well as private international arbitrations.
The hypothesis of this thesis is that the practice of arbitration in KSA is not as successful or effective as compared to other countries which has adopted arbitration proceedings due to the formers restrictions on religion and culture. .
KSA declared that it shall restrict the application of the New York Abitration Convention to the recognition and enforcement of arbitral awards made on the territory of the contracting State, on the basis of reciprocity (Chapman, 2005). In this declaration, it can be deduced that notwithstanding that KSA is a signatory to the said convention, it has nevertheless imposed restriction to its enforcement.

Background of study                                                                      
   
KSA adopted the use of arbitration in 1985. It has been recognized by the four sources of Sharia the Koran, Sunna, Idima and Oiyas. It is likewise unquestioned by the main four Islamic Schools Maliki, Hanbali, Hanafi and Shafi.  However, a debate ensued between the classical Muslim jurists over the concept of arbitration.  One view says that arbitration is a form of conciliation between parties which is not binding unless accepted by the parties. The other view holds that decisions in arbitrations are binding between parties for the reason that when the parties authorized an arbitrator to hear their case, the authorized arbitrators decision should bind them. As a result of these differences, some writers think that arbitration in the Sharia either results to a binding or a non-binding decisions (Alqurashi, 2004).  
    The need to thoroughly understand the application of laws governing arbitration in KSA is highly critical. A detailed evaluation of the facts surrounding arbitration legislations in KSA as compared to the selected countries such as Singapore, China, America, Switzerland and Hong Kong will be performed. Likewise, it would be essential to analyze KSA in comparison with other Islamic countries in order to analyze the extent to which religion influences the law.
Sharia influences the legal code in most Islamic countries including Saudi Arabia. The Quran is the main and the first source of Islamic law or Sharia. For Muslims, the Quran has laid down rules which cover the whole way of life. These rules are either of binding and obligatory nature or recommended or advisable or forbidden and disapproved.     The second source of Sharia is the Hadith which is a collection of the sayings and deeds as reported from the Prophet Mohammed. Thus, Islamic law or Sharia is the body of rules and jurisprudence derived mainly from the Quran and the Hadith. The Islamic Sharia and jurisprudence have developed out of the interpretation, elaboration and study of Quran and Hadith.
There is no single uniform Middle East or Arab law, nor is there one uniform legal system for all Arab countries, though most of the Arab countries have adopted the codified civil law system, based on the Egyptian Civil Code, as opposed to the English common law system.
    All Arab countries except KSA and Oman have modern Civil Codes based fully or partly on the Egyptian Civil Code. Thus, one of the common features between the laws of the Arab countries is the similarity or even uniformity of the provisions of the Civil Codes. Another major common feature is the application of Islamic law in all Arab countries whether directly or indirectly.
    There is no single rule as when and where Sharia applies. Sharia may apply either directly as a common law of the country, where there is no fully developed codified legal system, or indirectly through the application of statute law based fully or partly on Islamic law, or as a source of law to fill legislative gaps when a particular statute lacks the necessary provisions.
    In Saudi Arabia, where there is no Civil Code, Sharia operates and applies directly as a common law of the country, both in commercial courts as well as in courts of personal matters. No other law is applicable if contrary to Sharia. In KSA, the Basic Law of 1992 confirmed that Quran and Hadith are the sole sources of law and that all laws and regulations must conform to Sharia, which is the common law of the country. It follows that neither a foreign judgment nor any contractual provision contrary to Islamic principles may be enforced in KSA.
Significance of the study

This study seeks to analyze the laws in KSA, in order to decide whether it can be a suitable choice for international arbitration. The appropriateness of Saudi Arabia as an international Arbitration seat is more important because of the strategic position held by the country in international trade. KSA is considered to be one among the most powerful oil countries in the world. It is considered by the Organization of the Petroleum Exporting Countries (OPEC) to be the number one crude oil producer, proven to be the OPECs number one country with crude oil reserve and the number one crude oil exporter (Workman, 2006). Due to this, it is a centre for many international commercial agreements. Energy imports and exports in Saudi Arabia take an important position in the international business of KSA (Salem, 2007). For this reason, business relationships between KSA firms and international firms are quite prevalent. Due to the volatile nature of business activities, disagreements are bound to occur. As such, this require businesses to seek alternative dispute resolution in order to settle cases (Born, 2001). 
The way in which a country handles international commercial arbitration influences the choice of the country for business to a large extent. The findings of this study will therefore prove useful for existing as well as potential traders in understanding the arbitration laws and procedures in KSA . Using the findings of this study, investors as well as potential investors can make assessments whether alternative dispute resolution is advisable in their commercial dealings in KSA. Moreover, they can also use the findings of this study in order to promote alternative dispute resolution in KSA.
    . In an effort to diversify its sources of income, Saudi Arabia has developed six economic cities and capitalized on foreign direct investment (Laden, 2005 Salem, 2007). International trade has therefore increased and the number of external investors in Saudi Arabia is continuously increasing. These investors and traders deserve to know the rules on arbitration in the country in order to know about their rights and the procedures involved whenever they need to solve disputes using arbitration. This study will reveal the processes and rules of arbitration involved in Saudi Arabia as compared to other countries.    
Saudi Arabia became a member of the World Trade Organization (WTO) after its approval in 2005 (WTO, 2005). There are two implications of its membership the first one is the increase in trade, while the second is its possible effects on national laws in order to meet the WTO specifications. It must be noted that accession into the World Trade Organization exemplifies that a country must follow trade rules set by the organization.
The study of KSAs laws will reveal whether its accession in the WTO has affected the arbitration laws in country in any way. If so, the implications of this effect will be studied to show how it could influence the eligibility of KSA  as a seat for international commercial arbitration. The increase in free trade is expected to increase the number of international firms in KSA  as well as the import-export business. The findings of this study will act as a guide for investors wishing to expand their businesses into KSA to make informed choices with reference to the nature of international arbitration procedures in the country.
    Saudi Arabia is also a member of the Energy Charter Treaty (Energy Charter, 2009). This treaty is considered to be an excellent link to international arbitration. It is a means in helping businesses to solve disputes with other parties within the provisions of the treaty. Among the major mechanisms used in settling disputes are UNCITRAL, International Centre for the Settlement of Investment Disputes (ICSD)  and Arbitration Institute of the Stockholm Chamber of Commerce (Energy Charter, 2009).
Therefore, this is a basis for the study of international arbitration in Saudi Arabia so as to establish whether its membership in the treaty has any profound effect on the countrys laws on international arbitration and the perception of law makers on modernizing or expanding the existing legislative framework. Findings on whether the Energy Charter Treaty has an effect on KSA  laws on arbitration will aid investors in establishing whether Saudi Arabia is a suitable arbitration seat.
    Most of the Gulf States are producers of oil and practice the Islamic religion such that their characteristics are somewhat similar (Salem, 2007). A comparison of these countries will determine the differences in the arbitration laws and will contribute towards determining whether KSA  is ready to hear and decide international disputes.  The use of Gulf States for comparison will play an important role in establishing the impact of religion on a countrys laws.
Aim and context of study
This thesis is aimed at providing an understanding of the current situation of international arbitration in KSA . It shall provide a proper layout and discussion of the procedures in comparison to other countries.  It shall analyze the success of KSA in resolving international disputes through arbitration. This study aims to help in understanding the KSA laws vis--vis the public and private international law. 
This study also seeks to compare Saudi Arabia with other Islamic as well as Non-Islamic countries. Islamic countries include United Arab Emirates, Iraq, Iran, Egypt, Indonesia and various other Gulf countries. Non-Islamic countries include Singapore, United States and China, among others. Arbitration proceedings were successful in the latter.  As such, this demonstrates that the rule of law exists in these countries and thereby encouraging trade and investment. Moreover, it is easier for a foreign party in these countries to secure enforcement of judgment based on arbitration award than to enforce a judgment obtained in litigation where there maybe endless delays (Harrowell, 2008).

    The study will also make an analysis of the political, cultural and religious aspects in Saudi Arabia which affect the arbitration procedures. The Sharia Law which is a prevalent source of influence on the countrys laws will be analyzed inorder to establish whether it makes international arbitration different from other countries (Laden, 2005). Further, the paper will discuss how these laws impact Saudi Arabia as a suitable seat for international   arbitration. Similarly, the laws which are put forth by the Quran and which may affect arbitration procedures will also be studied in detail.

Contribution to knowledge

There have been a lot of debates concerning the compatibility of Islamic states with the concept of private and public international law.  Islamic nations or states were always subscribers to the Islamic Commercial Law. Though the latter adheres to the sanctity of human life, rights and dignity similar to public and private international law, they differ with regard to the concept of the liberalization of the justice (Herbert 2006). Further, there is a disparity between the Muslim jurists. One party considers that a decision reached in arbitration is final and executory whereas another party considers it only as a means to an amicable settlement, such that the decision shall be binding only if the parties to the arbitration accept the decision (Aqurashi, 2004).
The study then of KSAs laws as well as arbitration proceedings would be of great help not only to researchers but likewise to the business world. The study of its laws will be significant particularly to investors, contractors and even governments who would be dealing with KSA. It should be noted that KSA is the top crude producer in the world such that it could not be avoided that investors, contractors and even governments will be dealing with it. As such, commercial contracts will be entered into between them. Potential breach of contract is possible in every transaction. Therefore, the study of KSAs laws plays a very important role in the business world. It may not only help investors but it might save them from jeopardy due to ignorance of the law.
 Therefore, any information obtained in this study will be of great assistance to future readers who can use it to perform future studies. Likewise, it would be very useful guide to potential investors as well as governments who might think of entering into agreement with the KSA. Through this research, readers will be more informed about the KSAs arbitration laws in comparison with the public and private international law.

Approach and Methodology
This study will essentially be comparative. International commercial arbitration cases from the past will be used to illustrate how officials and the disputing parties undertake proceedings. International commercial arbitration proceedings from other countries will be looked into as this will help see the best practices of arbitration. This way, laws of different countries will be analyzed and compared.
To ensure that the concept of bias is completely eliminated, the strengths and shortcomings of each countrys arbitration procedures and provisions will be established in a comparative study. Research for this study shall be through the use of iTools. The use of iTools has become very famous so that information available in the internet will be used.   Search engines under the iTools such as Google and online encyclopedias will be used in the collection of valuable information as regards the study of this paper. Through the use of iTools, research for information for this paper shall be expedited. It will save time such that information from overseas can be gathered through its use. Further, the use of iTools proved to be successful such that recent information can be gathered through it as compared to regular textbook wherein the same is published on specific years and updated when the author would have the means to do so. Whereas, information with the use of iTools are being updated from time to time. 
This study will be undertaken through extensive research by using previous researches about KSA which are available from the libraries. Law journals and Constitutions of the aforementioned countries will also be used.  This study will also make use of comparative law to scrutinize KSA laws and compare it with the laws of other Islamic countries as well as Non-Islamic countries. Comparative law is a method for comparing different legal systems. Comparative investigations of the nature of law of different countries are involved in order to distinguish their different characteristics. Comparative law has proved valuable for legal comparative studies. The notion of transplants is especially common which depicts a narrow scope in the use of comparative law.
After the collection of information through the above-mentioned sources, the same shall be quantified and implications shall be made. The WEFT QDA software, which provides an effective data analysis tool for qualitative analysis, will be used. With the use of WEFT QDA, it is possible to analyze textual data such as written texts, field notes and interview transcripts, among others. This tool makes use of high levels of technology to import documents for comparison purposes.
After the result of the comparison of the information gathered, the same shall be analyzed and explained. The result shall then be thoroughly studied. It shall be determined why the other countries arbitration is more successful than the others. It shall be determined which factors contribute to such success. Subsequently, a summary and explanation shall be made. A conclusion shall then be drawn from the facts gathered.
 The use of all of the above methods and techniques will make this study a valuable asset for future references.