When commercial and corporate disputes arise, using options that avoid litigation can significantly reduce both time to resolution and legal fees. It can also help preserve the relationship between opposing parties. Alternative Dispute Resolution (ADR), which refers to solving disputes outside the court system (and includes negotiation, mediation, and arbitration) has gained significant importance in the Kingdom as the preferred method to resolving business disputes.

ADR has been a cornerstone of our practice for more than 50 years. Having successfully represented domestic and international clients in hundreds of high-profile, high-stake matters in the Kingdom, our lawyers are highly qualified ADR practitioners who are widely considered leaders in their field, and practice in accordance with international and professional standards in Arabic and/or English. As a firm, we are committed to helping clients prevent and resolve disputes by applying innovative alternatives to litigation.

A Successful Dispute Resolution Strategy Begins Early

Conducting business in the Saudi market that stands the test of time requires a robust understanding of all available dispute resolution mechanisms that can be applied in the event of a disagreement among parties. Protecting clients from potential future disputes begins well before agreements are signed.

Mediation and Arbitration clauses, meticulously drafted by us in contracts and agreements, have been instrumental in protecting the interests of our clients. Be it the choice of law, means of dispute resolution, venue provision, or other legal and regulatory issues, we ensure our clients are protected now and in the future.

Dispute prevention and early resolution of unavoidable conflicts are foundational to our practice. We have years of experience working directly with key project personnel to avoid disputes and effectively and efficiently resolve – on a ‘real-time’ basis – those disputes which cannot be avoided while keeping them outside the courts.

Using ADR to Settle Commercial and Corporate Dispute in KSA

A skilled mediator is critical to the resolution of any dispute between two or more parties. The earlier dispute resolution occurs, the greater the chance of preserving the relationship between the parties involved. Unlike litigation, which will have a win or lose outcome, opposing parties can use ADR to tailor the outcome and the dispute resolution process.

Where parties agree to refer their disputes to Saudi or international arbitration regimes, arbitration can prove to be a cost-effective means for the settlement of disputes, particularly disputes involving multinational parties. Like mediation, arbitration is highly flexible, yet it demands greater attention and requires expert legal advisors who have deeper insight and can think strategically.

Like most other jurisdictions, the local arbitration regime considers the arbitral award as final and binding; therefore, our lawyers ensure that they present their arguments and evidence in the greatest detail possible.

We regularly undertake bespoke processes to resolve disputes which can include:

• Direct negotiation
• Mediation
• Domestic and International Arbitration Boards and Arbitral Tribunals
• Expert determinations
• Adjudications
• Committees formed by royal decree

And where ADR methods are unsuccessful, our robust litigation team is ready to protect your interests.

About Our Dispute Resolution Team

The Dispute Resolution Practice at Al-Ghazzawi and Partners combines over five decades of extensive expertise with training to international best practice standards at the AAA-ICDR. Our team maintains a heavy schedule of lectures and seminars on techniques for avoiding and resolving disputes and are consistently at the forefront of the latest international developments in ADR practices.

Our team’s ability to understand the nature of disputes and analyze the best means of its resolution has earned us recognition among peers and across the region. Our firm’s involvement and reputation will often influence opponents to settle commercial disputes faster.

• We act confidentially and with sensitivity and a sense of urgency.
• Our deep business grounding allows us to see the big picture and create innovative solutions.
• Our out-of-court negotiation skills help us obtain desirable outcomes for our clients.
• We ensure that the decisions or agreements between parties are binding and enforceable.
• Our active involvement in several national and international arbitration boards is an advantage to our clients.

We have successfully counselled clients through:

• General commercial and contractual disputes
• Shareholder disputes
• Regulatory investigations and enforcement proceedings
• Fraud and asset tracing
• Property and estate disputes
• Construction and engineering disputes
• Banking, insurance, and financial disputes

Notable Alternative Dispute Resolution Projects Include:

• Advising a major Saudi food manufacturing company over its claims in the amount of USD $173 million. After termination of its joint venture with a leading international food products company.
• Advising a leading Swiss-based Islamic Finance institution on their dispute with a Saudi borrower which was heard before a Finance Committee formed by Royal Decree.
• Settling a USD $20 million dispute relating to the construction of a tower that occurred between a major Italian contractor and a subcontractor.
• Advising a leading domestic contractor on a USD $10 million dispute for breach of contract and non-compliance with contractual specifications relating to the construction of exhaust pipes in a power plant.
• Advising a major oil and gas company in a dispute with a publicly listed refining company over contractual obligations and compensation sought in amounts exceeding USD $400 million.
• Acting for a leading mobile telephone operator in a dispute with another operator over sharing of revenues in excess of USD $125 million. Our team facilitated an amicable settlement of the dispute.

Notable Arbitration Projects Include:

• Advising two Saudi leading contractors, as a co-counsel, about their dispute with a leading mega foreign contractor over the assignment and/or subcontract of an EPC contract of a mega public transport project in Riyadh city, in accordance with the shareholders agreement concluded between them. The value of this EPC contract was in excess of USD $5.9 billion. Our legal team successfully attended before the International Court of Arbitration of the International Chamber of Commerce in Geneva, Switzerland, as an expert on the administrative law in Saudi Arabia, and prepared several expert statements requested by the International Court of Arbitration about the project owner’s authority to exempt a contractor from the subjection to any of the administrative law provisions, under government project contracts.
• A mixed capital Industrial Conglomerate of 10 large sized company in their dispute with minority shareholders – One of the most swiftly concluded arbitral award.
• Representing a Saudi leading mega power plant construction and general contracting company on an arbitration case before the International Court of Arbitration of International Chamber of Commerce (Paris) in defending the client and filing a counterclaim of USD $25.66 million against the claimant on the principles of Shari’a law and the laws of Saudi Arabia, which governed the contracts between the parties.
• Acting for a leading Saudi corporate on its claim for €280 million against its foreign joint venture partner before the Jeddah Chamber of Commerce Arbitral Tribunal.
• Representing a leading Saudi industrial company on its claim in excess of USD $100 million against its foreign joint venture partner. The claim also included the purchase of the foreign joint venture partner’s shares. This was successfully decided in favour of the client before the Jeddah Chamber of Commerce Arbitral Tribunal.
• Advising a Saudi industrial joint stock company on its dispute with its partner, a leading German company, before Jeddah Chamber of Commerce Arbitral Tribunal, claiming damages of over USD $171 million.
• Defending a Saudi power supplier in an ICC arbitration over a dispute arising out of the construction of a power plant.
• Successfully representing a leading Saudi company on its claim for USD $255 million against its foreign joint venture partner before the Jeddah Chamber of Commerce and Industry.
• Representing a major Saudi food manufacturing company over its claims in the amount of approximately USD $579 million after termination of its joint venture with a leading international food products company in the Jeddah Chamber of Commerce and Industry. Our team obtained a favorable decision.
• Representing a leading Saudi food industries company in its arbitration case against a renowned Swiss multinational before the Jeddah Chamber of Commerce on claims for financial damages and losses based on breach and unlawful termination of contracts, the value of claims being around USD $173 million. Our team successfully represented and obtained a favourable award for the client.
• Advising an oil and gas major in a dispute involving claims of over USD $24 million by a contractor towards the works performed and damages. Our team successfully represented the client before the arbitral tribunal and had the tribunal adjudge award substantially lower than the sums claimed by the contractor.
• Acting for a major Saudi industrial joint stock company on its dispute with its partner, a leading German company, before Jeddah Chamber of Commerce Arbitral Tribunal, claiming damages of over USD $171 million and termination of joint venture and dissolution of the commercial relationship. Our legal team represented and obtained a favourable award for the client.
• Acting for a major GCC financial institution on their dispute over a financial guarantee in the amount of USD $200 million for becoming the master developer of a mega multi-use government development project, one of its kind in Saudi Arabia. Our team advised and represented the client before the Committee for the Settlement of Banking Disputes.
• Representing a large sized Saudi oil company in a dispute with a contractual petrochemical company in the Board of Grievance Commercial Committee, the value of the claim being USD $200 million.
• Representing a leading Turkish company in its dispute with its Saudi distributor before the Board of Grievance (Commercial Court). This matter was judicially resolved in favour of our client.
• Representing a leading Swiss-based Islamic finance institution on their dispute with a Saudi borrower which was heard before a Finance Committee formed by a royal decree.
• Representing a Saudi leading mega power plant construction and general contracting company on an arbitration case before the International Court of Arbitration of International Chamber of Commerce (Paris) in defending the client and filing a counterclaim of USD $25.66 million against the claimant on the principles of Sharia law and the laws of Saudi Arabia, which governed the contracts between the parties.
• Representing a Saudi leading mega power plant construction and general contracting company in an arbitration case before the International Court of Arbitration of the International Chamber of Commerce (Paris). Our team defended the client over the claim filed against it and filed counterclaims in the amount of USD $25.66 million on the principles of Sharia and laws of Saudi Arabia. Our team obtained favourable results for the client.
• Representing a leading Saudi food industries company in its arbitration case against a renowned Swiss multinational before the Jeddah Chamber of Commerce on claims for financial damages and losses based on breach and unlawful termination of contracts, the value of claims being around USD $173 million. Our team successfully represented and obtained a favourable award for the client.
  Defending a Saudi power supplier in an International Chamber of Commerce arbitration over a dispute arising out of the construction of a power plant.

Contact Our Dispute Resolution Practice

No matter the complexity of your dispute, our legal team can help protect your interest. We have the capabilities and depth to produce sound, binding resolutions. With offices located in Jeddah, Dammam, and Riyadh, we support domestic and international clients across the Kingdom. Contact us to book a consultation.