Article 2 of the Saudi Center for Commercial Arbitration Statute
المادة 2 من تنظيم المركز السعودي للتحكيم التجاري · الفصل الأول: طبيعة المركز ومقره واختصاصه
The article provides that the Center has juristic personality and financial and administrative independence, is non-profit and operates under the umbrella of the Council of Chambers, with its seat in Riyadh and the power to open branches.
Official text (Arabic)
This article has not been amended since the law was issued.
يتمتع المركز بالشخصية الاعتبارية وبالاستقلال المالي والإداري، ولا يهدف إلى الربح، ويعمل تحت مظلة مجلس الغرف، ويكون مقره الرئيس في مدينة الرياض، وله إنشاء فروع داخل المملكة وخارجها بحسب الحاجة.
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 2 explained in plain English
This article specifies the legal nature of the Saudi Center for Commercial Arbitration, in several elements:
- Juristic personality: the Center is an independent legal entity, which can contract, own property and sue in its own name.
- Financial and administrative independence: it has its own budget and administration, so its funds are not mixed with those of others.
- Not aimed at profit: it is a non-profit center.
- Operating under the umbrella of the Council of Chambers: that is, the Council of Saudi Chambers. Article 3 states that the Center supervises the arbitration proceedings that the parties agree to settle within its framework and under its rules.
- Seat: its main seat is in the city of Riyadh.
- Branches: it may establish branches inside and outside the Kingdom as needed, so its activity is not confined to Riyadh.
The practical benefit to the parties to a dispute is that the Center is an independent institutional body that supervises and administers arbitration and is not aimed at profit. A person who wants to know whether arbitration at the Center is suitable for a particular contract is advised to consult a lawyer specialized in commercial cases.
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 2 of the Saudi Center for Commercial Arbitration Statute
Is the Saudi Center for Commercial Arbitration a for-profit body?
No. The Center is not aimed at profit, and has juristic personality and financial and administrative independence.
Where is the seat of the Saudi Center for Commercial Arbitration?
Its main seat is in the city of Riyadh, and it may establish branches inside and outside the Kingdom as needed.
What is the Center's relationship with the Council of Saudi Chambers?
The Center operates under the umbrella of the Council of Chambers, while keeping its financial and administrative independence.
More articles on Nature of the Saudi Arbitration Center
- Article 1
The article defines the terms of the Statute of the Saudi Center for Commercial Arbitration: the Statute, the Center, the Council of Chambers, the Chambers, the Board and the arbitral tribunal.
يقصد بالكلمات والعبارات الآتية -أينما وردت في هذا التنظيم- المعاني الموضحة أمام كل منها، ما لم يقتضِ السياق غير ذلك: 1- التنظيم: تنظيم المركز السعودي للتحكيم ال
- Article 4
The article provides that the Council of Saudi Chambers contributes to supporting and marketing the Center's services and building effective relationships with the private sector.
يسهم مجلس الغرف في دعم خدمات المركز، وتسويقها، وبناء العلاقات الفاعلة مع القطاع الخاص.
- Article 5
The article provides for the independence of the board members and staff of the Center from the Council of Chambers and the Chambers, and the independence of the arbitral tribunal from the board in the cases being heard.
1- يستقل أعضاء المجلس وموظفو المركز عن مجلس الغرف والغرف في ممارسة عملهم، ولا يتلقون منهم أي تعليمات تتصل بأدائهم لعملهم. 2- تستقل هيئة التحكيم عن المجلس في مما
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.