DLA Piper advises on landmark enforcement decision in KSA

DLA Piper’s Litigation, Arbitration & Investigations team has advised a telecommunications company in an ICC arbitration that has resulted in a landmark enforcement decision in the Kingdom of Saudi Arabia. The decision follows the passing of two separate laws in the Kingdom, which have brought the arbitration and enforcement regime in the Saudi courts more closely in line with international standards.

In the recent arbitration, the Enforcement Court in Riyadh has confirmed that a USD18.5 million ICC award, rendered in London, will be enforced in the Kingdom against a Saudi-domiciled award debtor. The enforcement process, handled by our Litigation, Arbitration and Investigations team, took just three months before the Enforcement Court.

The decision to enforce this major foreign award, in addition to the relative speed with which the decision was reached, is one of the most significant and positive developments in arbitration in the Middle East for many years. Whilst foreign arbitral awards have been recognised and enforced in Saudi Arabia sporadically in the past, the process has generally been a tortuous one. The decision marks the first practical example of recognition and enforcement of a foreign award since the promulgation of the Kingdom’s new arbitration and enforcement laws.

Henry Quinlan, head of Litigation, Arbitration & Investigations, DLA Piper, Middle East added, “The enforcement landscape across the Middle East is rapidly changing, not just in Saudi Arabia but more broadly across the GCC. In the UAE, for example, we’ve recently seen a series of landmark judgments from the DIFC Courts which open up wider routes for the enforcement of foreign court judgments and arbitral awards than has traditionally been the case. We look forward to seeing more pro-arbitration decisions over the coming twelve months as governments seek to encourage foreign investment and diversify their economies.”