Enforcement of Arbitral Award in Saudi Arabia: Annulment Rules

The arbitration took a year, and the award has been issued. The winning party wants to enforce it tomorrow, and the losing party is looking for a loophole. Both need to know that the Arbitration Law deliberately keeps the grounds for annulment narrow and sets clear conditions for enforcement.

The direct answer: the losing party has only one way to challenge the award. It is an annulment case before the competent Court of Appeal, filed within 60 days of being notified of the award, on limited grounds listed in Article 50, which do not include re-arguing the merits. The winning party's request for an enforcement order is accepted only after this 60-day period has passed (Article 55).

The new Enforcement Law, published on 14/11/1447H (1 May 2026), comes into force 180 days after publication (around 28 October 2026) and replaces the Enforcement Law of 1433H. Under it, an arbitral award remains an executive instrument (sanad tanfidhi, a document enforceable directly at the Enforcement Court) in accordance with the relevant laws (Article 7).

Where is an annulment case against an arbitral award filed?

The annulment case is heard by the Court of Appeal that would originally have had jurisdiction over the dispute. In international commercial arbitration, it is the Court of Appeal in Riyadh, unless the parties agree on another Court of Appeal in the Kingdom (Article 8 of the Arbitration Law and Article 2 of its Implementing Regulations). The claimant attaches the original award or a certified copy, a copy of the arbitration agreement, and a certified translation if the award is in another language (Article 18 of the Regulations).

What are the grounds for annulment of an arbitral award in Saudi Arabia?

An annulment case is accepted only in the cases listed in Article 50:

• There is no arbitration agreement, or it is void or voidable, or it has lapsed because its term has expired.
• When the agreement was made, one of the parties lacked full legal capacity under the law that governs their capacity (as amended by Royal Decree M/21 of 1447H).
• One party could not present its defence because it was not properly notified of the appointment of an arbitrator or of the proceedings, or for a reason beyond its control.
• The award excluded legal rules that the parties agreed to apply to the merits.
• The tribunal was formed, or the arbitrators were appointed, in breach of the law or of the parties' agreement.
• The award decided matters not covered by the arbitration agreement. Only the extra part is annulled if it can be separated.
• The award did not meet the required conditions in a way that affected its content, or it relied on void procedures that affected it.

The court annuls the award on its own initiative if it contains anything that violates Islamic Sharia and public order in the Kingdom, or what the parties agreed, or if the dispute could not be arbitrated. The court does not examine the facts and merits of the dispute. Annulment of the award does not end the arbitration agreement unless the parties agree so or a judgment cancels the agreement (Article 50).

What is the deadline for an annulment case, and what happens after the judgment?

The annulment case is filed within 60 days of the date the party is notified of the award. Waiving the right to file it before the award is issued does not prevent the case from being accepted (Article 51). If the court upholds the award, it must order its enforcement, and its judgment cannot be appealed. If it annuls the award, its judgment can be appealed before the Supreme Court within 30 days from the day after notification (Article 51 of the Law and Article 17 of the Regulations).

How is an arbitral award enforced in Saudi Arabia?

An arbitral award has the force of res judicata (a final decided matter) and is enforceable (Article 52). The competent court, or a judge it delegates, issues an order to enforce it. The applicant attaches the original award or a certified copy, a copy of the arbitration agreement, a certified translation where needed, and proof that the award was deposited with the court (Article 53). The request is accepted only after the period for the annulment case has passed. Before issuing the order, the court checks that the award does not conflict with a judgment issued in the Kingdom, does not violate Sharia and public order, and was properly notified to the losing party (Article 55).

No grievance may be filed against an order to enforce. A refusal to enforce can be challenged before the Supreme Court within 30 days of the refusal (Article 55 of the Law and Article 17 of the Regulations). Filing an annulment case does not stop enforcement, unless the claimant asks for a stay in the statement of claim with serious reasons. The court decides the stay request within 15 days and may require a guarantee. If it stays enforcement, it must decide the annulment case within 180 days (Article 54).

If an annulment case is rejected, court costs of 1% of the amount awarded are imposed, up to a maximum of SAR 1 million (Article 5 of the Law of Judicial Costs).

An arbitral award orders a contractor to pay SAR 2.4 million. He is notified of it on 1 March.

On day 50 he files an annulment case, arguing that the arbitrators miscalculated the penalties. This is a disagreement with the tribunal's assessment and is not one of the grounds in Article 50, so the case is likely to be rejected, with court costs of 1%, which is SAR 24,000.

If he had proved that he was never notified of the arbitrator's appointment and so could not present his defence, his ground would be one of the listed grounds.

What changes under the new Enforcement Law?

• An arbitral award remains an executive instrument "in accordance with the relevant legal provisions", meaning after an enforcement order is issued under the Arbitration Law (Article 7(1)(b)).
• If five working days pass after the debtor is notified of the enforcement order without payment, compulsory enforcement starts immediately: credit information companies such as SIMAH are notified, and the debtor's current and future assets are attached. A fine of up to SAR 5,000 per day may also be imposed (Article 18).
• A travel ban is issued only at the request of the creditor, for up to three years, which can be extended up to a maximum of six years (Article 19).
• An enforcement request is not accepted on an instrument more than ten years past its due date (Article 11).
• Foreign arbitral awards are enforced in line with the Kingdom's obligations under international treaties, after checking the conditions of Article 9.

This is general information based on the official Arabic texts of Saudi laws, which prevail over any translation. It is not legal advice for your specific case.

Practical solutions for the winning and the losing party

If the award is in your favour:

• Make sure the other party is properly notified of the award, with proof, because the 60-day period starts from that notification.
• Make sure the tribunal has deposited the award with the court, and keep proof of the deposit.
• Wait for the 60 days to pass, then request the enforcement order.
• If an annulment case is filed, oppose any request for a stay that is not based on serious reasons.

If the award is against you:

• Calculate the 60 days from the date you were notified, precisely.
• Base your case on one of the listed grounds, not on disagreement with the tribunal's assessment.
• Ask for a stay of enforcement in the statement of claim itself, with serious reasons.
• Consider the cost of losing (1% of the amount) before filing.

The 60-day period starts from notification and waits for no one. Send us a copy of the award and the date you were notified on WhatsApp, and we will look with you at the strongest step available, whether enforcement or annulment.