Article 45 of the Saudi Arbitration Law
المادة 45 من نظام التحكيم · الفصل: في الدعوى التحكيمية
The article allows parties who agree on a settlement to ask for its terms to be recorded; the tribunal issues an award containing them and ending the proceedings, with the force of arbitrators' awards on enforcement.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا اتفق طرفا التحكيم خلال إجراءات التحكيم على تسوية تنهي النزاع، كان لهما أن يطلبا إثبات شروط التسوية أمام هيئة التحكيم، التي يجب عليها في هذه الحالة أن تصدر حكماً يتضمن شروط التسوية وينهي الإجراءات، ويكون لهذا الحكم ما لأحكام المحكمين من قوة عند التنفيذ.
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 45 explained in plain English
The parties may settle before the tribunal decides. This article gives that settlement enforceable force rather than leaving it a mere agreement.
The conditions:
- The parties agree on a settlement that ends the dispute.
- This is during the arbitration proceedings.
- The parties ask for the terms of the settlement to be recorded before the arbitral tribunal.
What the tribunal must do: If these conditions are met, it must issue an award containing the terms of the settlement and ending the proceedings.
The force of this award: It has the force of arbitrators' awards on enforcement, that is, it is treated on enforcement like an ordinary arbitral award.
The practical benefit is that the settlement does not remain an ordinary agreement between the parties but becomes the content of an award with the force of arbitrators' awards on enforcement. Note that it is the parties who set the terms of the settlement here, and the tribunal's role is to record them in an award.
The article is linked to Article 44, which requires the tribunal to deposit the original award with the competent court, and to Article 46, which allows a request to interpret any ambiguity in the operative part of the award.
To draft clear, enforceable settlement terms, it is advisable to seek the help of a lawyer who specializes in arbitration and commercial cases.
Practical example
During an arbitration between an investor and a real estate developer in Riyadh, they agreed that the developer would pay an amount in two installments in return for ending the dispute. They asked the arbitral tribunal to record this, so it had to issue an award containing the terms of the settlement and ending the proceedings, and this award has the force of arbitrators' awards on enforcement if the developer does not meet the installments.
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 45 of the Saudi Arbitration Law
Is settlement allowed during arbitration?
Yes. If the parties agree during the proceedings on a settlement that ends the dispute, they may ask for its terms to be recorded before the arbitral tribunal.
Can a settlement agreement reached in arbitration be enforced?
Yes. The tribunal issues an award containing the terms of the settlement, and it has the force of arbitrators' awards on enforcement.
Can the arbitral tribunal refuse to record the settlement?
The text of the article requires the tribunal in this case to issue an award containing the terms of the settlement and ending the 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 40
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.
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 تار
- 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
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.