Article 21 of the Saudi Arbitration Law
المادة 21 من نظام التحكيم · الباب الثالث: هيئة التحكيم
The article provides that an arbitration clause in a contract is an agreement independent of the contract's other terms, so it is not void because the contract is void, rescinded or terminated if the clause is valid in itself.
Official text (Arabic)
This article has not been amended since the law was issued.
يعد شرط التحكيم الوارد في أحد العقود اتفاقاً مستقلاً عن شروط العقد الأخرى. ولا يترتب على بطلان العقد ـ الذي يتضمن شرط التحكيم ـ أو فسخه أو إنهائه بطلان شرط التحكيم الذي يتضمنه إذا كان هذا الشرط صحيحاً في ذاته.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 21 explained in plain English
This article lays down an important principle known as the independence of the arbitration clause: an arbitration clause written into a contract is treated as an agreement independent of the rest of the contract's terms.
The practical result: none of the following makes the arbitration clause void:
- The invalidity of the contract that contains the clause.
- Rescission of the contract.
- Termination of the contract.
The restriction: the arbitration clause remains in place on condition that it is valid in itself. If the clause itself is defective, this article does not protect it.
Why is this important? Many disputes are in fact about the validity or rescission of the contract. If the arbitration clause fell with the contract, one party could escape arbitration merely by alleging the contract is void. Under this article the clause remains, and the dispute over the contract itself can be submitted to arbitration.
The article is connected with Article 20, which makes the arbitral tribunal the body that decides pleas of its lack of jurisdiction, including pleas based on the absence, lapse or invalidity of the arbitration agreement. It is followed by Article 22, which regulates the role of the competent court in ordering interim or precautionary measures.
If your contract is in dispute over its validity or rescission and contains an arbitration clause, it is advisable to consult a lawyer specialized in arbitration and commercial cases.
Practical example
A company in Riyadh terminated a supply contract with a supplier before its term ended, and the contract contained an arbitration clause. The supplier claimed that with the termination of the contract the arbitration clause was no longer binding, and brought an action before the court. Under this article, terminating the contract does not make the arbitration clause void so long as it is valid in itself.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 21 of the Saudi Arbitration Law
Does the arbitration clause lapse if the contract is rescinded?
No. The invalidity, rescission or termination of the contract does not make the arbitration clause void if the clause is valid in itself.
What does it mean that the arbitration clause is an independent agreement?
It is treated as an agreement independent of the contract's other terms, so it is not affected by invalidity, rescission or termination of the contract, so long as it is valid in itself.
Does this article protect a defective arbitration clause?
No. The article requires the arbitration clause to be valid in itself.
More articles on Arbitration Agreement
- Article 1
The article defines three key terms in the Arbitration Law: the arbitration agreement, the arbitral tribunal and the competent court.
تدل العبارات الآتية الواردة في هذا النظام على المعاني الموضحة أمامها، ما لم يقتض السياق خلاف ذلك : 1 - اتفاق التحكيم : هو اتفاق بين طرفين أو أكثر على أن يحيلا إ
- Article 5
The article requires applying the provisions of any document, such as a model contract or international agreement, to which the parties agree to subject their relationship, so long as it does not contravene Islamic Sharia.
إذا اتفق طرفا التحكيم على إخضاع العلاقة بينهما لأحكام أي وثيقة (عقد نموذجي، أو اتفاقية دولية أو غيرهما)، وجب العمل بأحكام هذه الوثيقة بما تشمله من أحكام خاصة با
- Article 9
The article allows an arbitration agreement to precede or follow a dispute, requires it to be in writing or it is void, and sets out the accepted forms of writing.
1- يجوز أن يكون اتفاق التحكيم سابقاً على قيام النزاع سواء أكان مستقلاً بذاته، أم ورد في عقد معين. كما يجوز أن يكون اتفاق التحكيم لاحقاً لقيام النزاع، وإن كانت ق
- Article 10Amended by M/21
The article requires capacity to dispose for a valid arbitration agreement, and allows government bodies to agree to arbitration only with the Prime Minister's approval unless a special statutory provision permits it.
1- لا يصح الاتفاق على التحكيم إلا ممن يكون أهلاً للتصرف سواء أكان شخصاً ذا صفة طبيعية أم شخصاً ذا صفة اعتبارية 2 - لا يجوز للجهات الحكومية الاتفاق على التحكيم إ
- Article 11
The article requires a court seized of a dispute covered by an arbitration agreement to rule the action inadmissible if the defendant raises this before any request or defense, and provides that the action does not stop the arbitration.
1- يجب على المحكمة التي يرفع إليها نزاع يوجد في شأنه اتفاق تحكيم أن تحكم بعدم جواز نظر الدعوى إذا دفع المدعى عليه بذلك قبل أي طلب أو دفاع في الدعوى. 2 - لا يحول
- Article 12
The article requires the competent court to refer the dispute to arbitration if the parties agree to arbitrate while it is being heard, subject to paragraph (1) of Article 9.
مع مراعاة ما ورد في الفقرة (1) من المادة (التاسعة) من هذا النظام؛ إذا تم الاتفاق على التحكيم أثناء نظر النزاع أمام المحكمة المختصة، وجب عليها أن تقرر إحالة النز
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.