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Critical overview of the enforcement of foreign arbitral awards in saudi

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It will also discuss the procedures involved in enforcement and how these can pose a challenge to the foreign arbitrators. In clear terms, non-conformity with the Islamic Law will lead to rejection of the application for a foreign arbitral award by the Kingdom of Saudi Arabia. Here the paper will attempt to answer the question What policies should the Kingdom of Saudi Arabia consider taking up in order to address the limitations and difficulties faced in enforcement of foreign arbitral awards? The proposal here shall outline the rationale or background of the problem specified by the question and after explaining this, it will outline the research method to be taken in order to reach our desired inference. This will be followed by targeted literature review and a provisional chapter outline for the contents. Elaboration of the proposal The proposal outlines the path that will be adopted by the dissertation which will focus on the Saudi Arbitration Law 1983 and the Rules for its Implementation (IR) in 1985 in order to understand and analyze the legal dimensions of the arbitration procedures under the Saudi government. It will take up a study of scholarly books and articles to provide an account of the role of Islamic schools in the Saudi legal framework and the specific articles of the law which pose a challenge to foreign arbitrators. The Code of Commercial Court of 1350H in 1950 made provisions for the conflicting sides to reach a solution to mutual disputes or disagreements. Other authentic articles available online have helped in throwing light on the legal framework and the reason behind the initiation of the need for the presence of a neutral entity or an independent arbitral forum. The renowned dispute between the Arabian American Oil Company (ARAMCO) and the government of Saudi initiated the foreign arbitrators to consider the necessity of reconsidering the Shari’ah as the sufficient framework of law to govern the energy disputes arising form complex issues and therefore the law could not serve as a governing one2. However a delve into the way the religion of Islam influences all decisions of the Saudi government can enable one to understand that the country is sceptical to some extent in enforcing foreign arbitral awards especially when they concern non-Saudi law of governance. Some new policies such as Article 3 of Arbitration Law in 1983 were passed owing to the economic boom of 1970 which brought about foreign companies’ investments in the nation. The Article 3 brought a shift in the position of the government towards international arbitration. Attempts have been taken to regulate the national arbitration law regarding settlement of commercial disputes3. Keeping such proceedings in the backdrop, the proposal attempts to determine the key setbacks and limitations posed during the implementation of foreign arbitral awards in the nation. This will set the ground of justification for addressing the research question framed in the previous section. The process of close scrutiny of the issue present in the doctrines of the law might determine certain sensitive concerns which might deteriorate the effectiveness of commercial arbitration system in the nation. Research Methodology The research will undertake a combination of three specific approaches or methods. The first is the