Law of Arbitration

1. An action to nullify an arbitration award shall not be admitted except in the following cases: a) If no arbitration agreement exists, or if such agreement is void, voidable, or terminated due to expiry of its term. b) If either party, at the time of concluding the arbitration agreement, lacks legal capacity, pursuant to the law governing his capacity. c) If either arbitration party fails to present his defense due to lack of proper notification of the appointment of an arbitrator or of the arbitration proceedings, or for any other reason beyond his control. d) If the arbitration award excludes the application of any rules which the parties to arbitration agree to apply to the subject matter of the dispute. e) If the composition of the arbitration tribunal or the appointment of arbitrators is carried out in a manner that violates this Law or the agreement of the parties. f) If the arbitration award rules on matters not included in the arbitration agreement. Nevertheless, if the sections of the award relating to matters subject to arbitration can be separated from those not subject thereto, then nullification shall apply only to the sections not subject to arbitration. g) If the arbitration tribunal fails to observe the conditions required for the award in a manner that affects its substance, or if the award is based on void arbitration proceedings that affect it. 2. The competent court considering the nullification action shall, on its own initiative, nullify the award if it violates the provisions of Sharia and public order in the Kingdom or the agreement of the arbitration parties, or if the subject matter of the dispute cannot be referred to arbitration under this Law. 3. The arbitration agreement shall not terminate with the issuance of the competent court’s decision nullifying the arbitration award unless the arbitration parties agree thereon or a decision nullifying the arbitration agreement is issued. 4. The competent court shall consider the action for nullification in cases referred to in this Article without inspecting the facts and subject matter of the dispute.