International Construction Contracts in Saudi Arabia: Demystifying Saudi Law and Shari’ah Principles In The Kingdom

International Construction Contracts in Saudi Arabia: Demystifying Saudi Law and Shari’ah Principles In The Kingdom

January 2023, The International Construction Law Review

It has been said that the laws applicable to disputes arising in the Kingdom of Saudi Arabia are a black box – complicated, inaccessible, hidden, mysterious. For many years, Saudi Arabia has been home to some of the world’s biggest and most important construction projects. Alongside these projects has come the inevitability of international arbitration over disputes arising from them. While the disputed issues may be generally described as typical in construction law – contractual notice, non-payment, scope variations, limitation of liability, and damages – the applicable law may be counter-intuitive to users who are less familiar with the laws of Saudi Arabia and the applicable Shari’ah principles. It, therefore, becomes important to demystify those laws and principles, particularly as applied to construction arbitration, with a view to enhanced clarity and predictability over construction contract disputes in the Kingdom.