Insights

The Saudi Center for Commercial Arbitration (SCCA) has published the second edition of its arbitration rules, which came into effect on May 1, 2023 and applies to all arbitrations commenced on or after that date. As compared to the 2018 rules, these amendments are aimed at making the SCCA more attractive to a variety of business sectors. The new rules are the fruit of two years of consultation with industry experts, all in an effort to meet the highest standards in international arbitration. Some of the noteworthy amendments include the establishment of the SCCA Court, the removal of references to Sharia law, and new regulations regarding consolidation, cybersecurity, joinder, and emergency protective measures.

On December 15, 2022, in Raad v. Bank Audi SAL, Case No. 21-2612, the U.S. Court of Appeals for the Second Circuit vacated the Southern District of New York’s decision to dismiss the breach of contract case on forum non conveniens grounds. In its Summary Order, the Court of Appeals found that the forum selection clause in the General Agreement between the depositors and the bank did not contain language directing that Beirut courts have exclusive jurisdiction over disputes arising from their agreement. While this decision gives a glimmer of hope to these account holders, the Summary Order certainly does not ensure victory for the Raads just yet. Importantly, the ruling also does not have precedential effect, meaning it will provide limited support for others seeking to bring claims against Lebanese banks for refusing to release their funds. Nonetheless, this decision demonstrates that persons and entities with funds locked behind capital controls instituted unilaterally by Lebanese banks due to the ongoing Lebanese financial crisis may still have a path to redress in U.S. courts.

On March 21, 2022, Member States of the International Centre for Settlement of Investment Disputes (“ICSID”) approved amendments to ICSID’s Regulations and Rules (the “Rules”). These amendments are the culmination of five years of consultation with States, legal specialists, and business representatives, and follow the publication of six Working Papers. The 2022 Rules are intended to come into effect on July 1, 2022.