Article 22 of the Saudi Central Bank Law

This article regulates the Central Bank's contracts and procurement, in three paragraphs:

Paragraph 1: language of contracts. The Bank may conclude contracts and agreements in Arabic or other languages, as the needs of the work and the Bank's interest require.

Paragraph 2: procurement.

• In carrying out its work and securing its purchases, the Bank is not subject to the Government Tenders and Procurement Law.
• Instead it is subject to regulations and policies the Board issues.
• Provided that these regulations and policies are consistent with the basic objectives and principles of the Government Tenders and Procurement Law.

Paragraph 3: governing law and dispute resolution.

• The rule: the Bank's contracts and agreements are subject to the policies the Board approves.
• The exception: in cases the Bank's interest requires, it may be provided that the contracts are subject to foreign laws, under the Board's policies.
• In those cases it may also be provided that foreign courts have jurisdiction, or that arbitration is used.

Note that foreign law, foreign courts and arbitration appear as an exception tied to the Bank's interest and the Board's policies, not as a general rule.

It is preceded by Article 21 on the Bank's contact with foreign supervisory bodies and international organizations. It is followed by Article 23, which prohibits Board members, employees, external auditors and agents from disclosing any information about the affairs of the Bank or financial institutions.

Anyone contracting with the Central Bank who needs to understand the governing law or arbitration clauses should consult a lawyer who specializes in banking and finance or commercial contracts.