Cost of Arbitration Versus Litigation in Saudi Arabia: What Drives the Bill

The cost drivers of resolving a commercial dispute in Saudi Arabia, through SCCA arbitration or the commercial courts, and the levers that keep legal spend proportionate.

The cost of a commercial dispute in Saudi Arabia depends more on its complexity and duration than on the forum. SCCA arbitration adds institutional and arbitrator fees that court proceedings do not have, while both involve counsel, experts, translation and enforcement costs. Institutional fees are published by the SCCA on a schedule linked to the amount in dispute; court fees are set by the Ministry of Justice. The drivers below show where money goes and how to control it.

What this number does and does not include

This breakdown covers the cost of resolving a commercial dispute to a final award or judgment and enforcing it in the Kingdom. It excludes the value of the claim itself, management's lost time on the business, and pre-dispute contract drafting. No fee amounts are quoted: check the SCCA fee schedule and current court fees for your claim value.

Counsel fees

Saudi-licensed lawyers are needed in court and are usual in arbitration, sometimes alongside international counsel. This is typically the largest cost in either forum.

• Pushes it up: many submissions, long hearings, multiple law firms and a disorganised document base.
• Brings it down: clear issues, early case assessment and a single coordinating firm.
• How to control it: Agree a budget by phase and review it at each procedural milestone.

Institutional fees

In SCCA arbitration, registration and administrative fees based on the amount in dispute. In court, filing fees under the applicable rules.

• Pushes it up: high claim values and counterclaims that raise the amount in dispute.
• Brings it down: claiming what can be proved rather than inflating the claim.
• How to control it: Calculate institutional fees from the published schedule before filing.

Arbitrator fees

Arbitration only: fees of one or three arbitrators, set under the SCCA schedule or as agreed. A three-member tribunal costs substantially more than a sole arbitrator.

• Pushes it up: three-member tribunals, long hearings and complex issues.
• Brings it down: a sole arbitrator for smaller claims and expedited procedures where available.
• How to control it: Specify the number of arbitrators and expedited rules in the clause at drafting.

Experts

Technical, quantum or delay experts are common in construction and engineering disputes. In courts, the court usually appoints the expert; in arbitration, parties often appoint their own.

• Pushes it up: duelling party experts on many issues.
• Brings it down: a single joint or tribunal-appointed expert on narrow questions.
• How to control it: Define expert questions narrowly and early.

Translation

Court proceedings are in Arabic, so foreign-language documents need certified translation. English-language arbitration may still need translation of Arabic documents.

• Pushes it up: large document volumes and late translation under time pressure.
• Brings it down: translating only the core documents and doing it early.
• How to control it: Maintain a translated core bundle from the start of the dispute.

Hearings and logistics

Hearing venues, transcription, witness travel and interpreters, especially in arbitration with international parties.

• Pushes it up: in-person hearings with many witnesses flying in.
• Brings it down: virtual or hybrid hearings for procedural matters and some witnesses.
• How to control it: Agree hearing format early in the procedural timetable.

Enforcement

Applications to the enforcement court, asset searches and follow-up until recovery. For foreign awards, document authentication and translation are added.

• Pushes it up: a debtor with hidden or foreign assets and challenges to the award.
• Brings it down: security obtained early, such as promissory notes or guarantees, and a clean award.
• How to control it: Assess the debtor's assets before starting the dispute.

Costs that never appear on the first page

• Management and staff time spent on witness statements and document collection.
• Costs of interim measures such as asset freezes or security.
• Cash tied up while an award or judgment is pending.
• Adverse costs if the tribunal or court orders you to bear part of the other side's costs.
• Relationship damage with a customer or partner.
• Parallel proceedings, such as challenges to an award, that restart the spending.

Keeping the budget honest

Set a dispute budget as a proportion of the realistically recoverable amount, not the claimed amount, and revisit it at each stage. If projected costs approach that proportion, consider mediation or settlement. Ask Saudi counsel for a phased estimate for both forums before choosing, where the contract allows a choice.

• Budget against actual spend after each procedural stage.
• Updated view of the likely recovery and the debtor's assets.
• Settlement options and their value compared with continuing.
• Expert scope against the issues still in dispute.
• Translation and document costs against the core bundle plan.

Domira works with foreign investors on the property side of entering Saudi Arabia: finding land or premises, due diligence, design, construction and asset management. For licensing, tax and legal steps, work with a licensed adviser; we coordinate with yours so the property decision fits the structure you choose.