Article 40 of the Saudi Arbitration Law
المادة 40 من نظام التحكيم · الفصل: في الدعوى التحكيمية
The article sets the period for issuing the award ending the dispute (as agreed by the parties, or twelve months), the possibility of extending it, and what the parties may do when it passes.
Official text (Arabic)
This article has not been amended since the law was issued.
1- على هيئة التحكيم إصدار الحكم المنهي للخصومة كلها خلال الميعاد الذي اتفق عليه طرفا التحكيم، فإن لم يكن هناك اتفاق وجب أن يصدر الحكم خلال اثني عشر شهراً من تاريخ بدء إجراءات التحكيم.
2- يجوز لهيئة التحكيم ـ في جميع الأحوال ـ أن تقرر زيادة مدة التحكيم على ألا تتجاوز هذه الزيادة ستة أشهر، ما لم يتفق طرفا التحكيم على مدة تزيد على ذلك.
3- إذا لم يصدر حكم التحكيم خلال الميعاد المشار إليه في الفقرة السابقة، جاز لأي من طرفي التحكيم أن يطلب من المحكمة المختصة أن تصدر أمراً بتحديد مدة إضافية، أو بإنهاء إجراءات التحكيم، ولأي من الطرفين عندئذ رفع دعواه إلى المحكمة المختصة.
4- إذا عين محكم بدلاً من محكم وفقاً لأحكام هذا النظام، امتد الميعاد المحدد للحكم ثلاثين يوماً.
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 40 explained in plain English
This article sets a time limit for arbitration so that the dispute does not drag on without end.
- The original period: The tribunal issues the award ending the whole dispute within the period the parties agreed on; if there is no agreement, it must be issued within 12 months of the date the arbitration proceedings began.
- Extension: In all cases the tribunal may decide to extend the period, provided the extension does not exceed 6 months, unless the parties agree on a longer period.
- When the period passes: If the award is not issued within the period referred to in paragraph 2, either party may ask the competent court to issue an order setting an additional period or ending the arbitration proceedings. In that case either party may bring its claim before the competent court.
- Appointment of a replacement arbitrator: If an arbitrator is appointed to replace another under the provisions of the Law, the period for the award is extended by 30 days.
Paragraph 3 does not provide that the arbitration ends automatically when the period passes; rather, it allows either party to turn to the competent court to request the additional period or the termination. The article is linked to Article 39, which governs how the award is issued, and to Article 41, which extends the period by 30 days where one of the parties dies or loses capacity, unless the tribunal decides to extend it by a similar period or the parties agree otherwise.
To assess the most suitable option when the tribunal is late in issuing its award, it is advisable to consult a lawyer who specializes in arbitration and commercial cases.
Practical example
Arbitration began between a logistics company in Dammam and its client without their agreeing on a period. Twelve months passed and then the tribunal decided to extend the period by 6 months. If this extension passes without an award, either party may ask the competent court to set an additional period or to end the arbitration proceedings.
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 40 of the Saudi Arbitration Law
How long does it take to issue an arbitral award in Saudi Arabia?
The period the parties agree on; if they do not agree, the award must be issued within 12 months of the date the arbitration proceedings began.
Can the arbitration period be extended?
Yes. The tribunal may decide to extend the period by no more than 6 months, unless the parties agree on a longer period.
What do I do if the arbitral tribunal is late in issuing the award?
If the award is not issued within the period, you may ask the competent court for an order setting an additional period or ending the arbitration proceedings.
More articles on The Arbitral Award
- Article 38
The article sets the rules the tribunal applies to the subject of the dispute, without contravening Islamic Sharia or public order, and allows an award by conciliation if it is expressly authorized.
1- مع مراعاة عدم مخالفة أحكام الشريعة الإسلامية والنظام العام بالمملكة، على هيئة التحكيم أثناء نظر النزاع الآتي: أ - تطبيق القواعد التي يتفق عليها طرفا التحكيم
- Article 39
The article regulates how the tribunal issues its award by majority after secret deliberation, the choice of a casting arbitrator when no majority is possible, and procedural decisions and interim and partial awards.
1- يصدر حكم هيئة التحكيم المشكلة من أكثر من محكم واحد بأغلبية أعضائها بعد مداولة سرية. 2- إذا تشعبت آراء هيئة التحكيم ولم يكن ممكناً حصول الأغلبية فلهيئة التحكي
- Article 41
The article sets when arbitration proceedings end, provides that they do not end on the death or loss of capacity of a party, and that the tribunal's mission ends when the proceedings end.
1- تنتهي إجراءات التحكيم بصدور الحكم المنهي للخصومة، أو بصدور قرار من هيئة التحكيم بإنهاء الإجراءات في الأحوال الآتية: أ - إذا اتفق طرفا التحكيم على إنهاء التحك
- Article 42
The article requires the arbitral award to be written, reasoned and signed by the arbitrators or a majority of them, and lists the details it must contain.
1- يصدر حكم التحكيم كتابة ويكون مسبباً، ويوقعه المحكمون، وفي حالة تشكيل هيئة التحكيم من أكثر من محكم واحد يُكتفى بتوقيعات أغلبية المحكمين بشرط أن يثبت في محضر ا
- Article 43
The article requires each party to be given a true copy of the award within 15 days of its issuance, and prohibits publishing the award or any part of it without the written consent of both parties.
1- تُسلّم هيئة التحكيم إلى كل من طرفي التحكيم صورة طبق الأصل من حكم التحكيم خلال خمسة عشر يوماً من تاريخ صدوره. 2- لا يجوز نشر حكم التحكيم أو جزء منه إلا بموافق
- Article 44
The article requires the tribunal to deposit the original award or a signed copy with the competent court within 15 days of its issuance, with a certified Arabic translation if it was issued in a foreign language.
تودع هيئة التحكيم أصل الحكم، أو صورة موقعة منه باللغة التي صدر بها لدى المحكمة المختصة وذلك خلال المدة المنصوص عليها في الفقرة (1) من المادة (الثالثة والأربعين)
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.