· IntroductionArbitration refers to dispute resolution is .docx

· Introduction
Arbitration refers to dispute resolution is it is a sort of private
judicial determination of a given dispute usually by an
independent third party. It can involve independent arbitrators
or a tribunal that has any given number of arbitrators although
in some legal systems, recommend that arbitrators be of an odd
number so that they cannot tie. The parties that are disputing
normally hand their powers to the arbitrators who should decide
on dispute. In one hand, arbitration can be an alternative to a
court action. It is also wise to note that arbitration process is so
binding. The main aim of arbitrating is to get just and fair
resolution of disputes by a third party who are impartial with no
delay or much expense. The parties that are involved in a
dispute also have to agree on the process of the dispute
resolution and courts are not allowed to interfere. These are
some principles of arbitration.
Negotiation on the other hand is a dialogue between two or
more parties or individuals with the intention of reaching a
beneficial outcome on any dispute or conflict(Derains &
Schwartz, 2015). In negotiation, the parties should allow each
other enough opportunities to be heard so that the conflict can
be solved peacefully without involving the courts.
· Arbitration of disputes in Saudi Arabia
In Saudi Arabia, the body that paramount in law is the Shariah.
This is a collection or principles that are founded from different
given sources such as from the Islamic Holy Quran as well as
from the Sunnah that are also based on four Islamic school of
jurisprudence; the Hanbali, Hanafi, Maliki and Shafi. There are
some statutory enactments that are not present in Saudi Arabian
law, such as the law that governs mortgages and other security

interests. Shariah Law is also founded from legislation that is
adopted in different forms ranging from royal decrees, Council
of Ministers resolutions, ministerial resolutions, and even
departmental circulars. However, it is good to note that these
laws and regulations are in most cases in conflict with the
provisions of Shariah because their applications do not align
with Islamic principles.
The Basic Law for instance came into action in 1992 and the
King during this time dealt with any matter that arose in
society. Both the Basic Law, the Consultative Law, the Council
of Ministers Law as well as the Provincial Councils Law were
all done by the royal king and he also had powers to removal
any of them when he decided. In addition, the royal decrees
were used in approving any international treaty or concession,
amendments or any other enactments that were recommended by
the council of ministers(Baamir, 2016). This same council of
ministers is given the permission to adopt any resolutions that
regulate given issues without any decree from the royalking. On
the other hand, resolutions of ministers can be used by any
minister according to the power given to then by the given law.
These are also the resolutions that are in most cases used to set
rules and regulations leading to the implementation of the
specific law.
All the courts and any adjudicatory body need to interpret the
government legislation, according to the Shariah principles as
well as the Board of Grievances. This is what Shariah courts
will rather do naturally. In fact, the Board of Grievances Law
gives the board jurisdiction over administrative law matters that
also comprise of challenges and disputes relating to claims of
compensation from the government.
In Saudi Arabia, arbitration was not very popular and it was not
supported at all by the courts. This is because there was so
much uncertainty when it came to enforcement of arbitral
awards because they are quite questionable to their application
of the constitution, whether the case merited and whether the
interpretation of the constitution was applicable. With the new

Law of arbitration as well as the enforcement law that was
passed in 2012, it is clearthat the arbitration atmosphere in
Saudi Arabia is taking a good direction and it is helping reduce
the congestion of cases in courts.
The Saudi Center for Commercial Arbitration in Riyadh is the
year 2016 and the publication of the SCAA Arbitration Rules
that are founded on UNCITRAL Arbitration Rules is one of the
reasons why arbitration is improving and it is in fact changing
for the better. In the following year, the Implementing
Regulations of the new Arbitration Law were also published and
so many provisions which had question marks were clarified in
the Official Gazette.
· Arbitration in the United States
In the United States, things are quite different although some
parts are the same. For instance, the arbitrators and tribunal
members are in most cases appointed by any of the following
ways;
1. It can be directly by the disputing parties such as if they both
agree mutually or even each party choosing its arbitrator
2. Arbitration can be handled by the existing tribunal members
such as while the warring parties choose an arbitrator each, the
appointed arbitrators will appoint the third arbitrator
3. Arbitrators can also be chosen by an external third party,
such as a court or any individual who has been nominated by the
warring parties(Shore, Schaner, & Chiusa, 2018).
Arbitration in the United States is under the governance of the
state and federal law and while each state has its own rules on
the processes and procedures of arbitration, the federal law also
has provisions on what it expected from the procedures. Each
state also has its own procedures regarding conformation of
arbitrators’ awards- this being a step that gives power to the
award’s judgment after a court trial. However, almost all the
states have come to adopt the Uniform Arbitration Act and are
applying it besides some state rules and regulations of
arbitration.
There are three classes of arbitration in the United States;

i. Commercial arbitration which offers the highest percentage of
cases and disputes and it presents a dispute between two
enterprises in commerce.
ii. The second one is consumer arbitration which is normally
regarding conflicts between consumers and suppliers
iii. The last one is the Labor arbitration which is normally
aimed at resolving disputes that are related to employment; such
as between employers and employees. This class can also be
categorized into two sets; Rights arbitration which concerns the
rights of employees and employers and interest arbitration.
There are many sorts of labor arbitration and they can be
regarding decisions as well as the actions of employers, trade
unions and even employees take and the grieving side can either
be an individual or groups of people such as all employees in a
given company. These sort of disputed can also be said to apply
the `med/arb’ methods to negotiate on their disputes which
means that before arbitration begins, the disputing parties have
to agree that if mediation process does not succeed then the
arbitrator or any other mediating party will be allowed to reach
a binding decision to end the dispute.
· Choosing of arbitrators and the arbitration process in Saudi
Arabia
When there is a given dispute that needs to be resolved,
arbitration should be used with consent by both parties
involved. This can be as a result of execution of given contracts
or any other matter that cause conflict. However, it is good to
note that arbitration will not be accepted in disputes that do not
permit conciliation and only the legal parties have the capacity
to agree on arbitration depending on the weight of the case at
hand. This includes the government bodies that are not allowed
to intervene in the arbitration process except when they are

given a go ahead by the President of the Council of Ministries.
When choosing an arbitrator, the qualities that are so much
considered among others are: people of good conduct and
reputation as well as people who have full legal capacity. The
people should be Muslims, men and Saudi Arabians. The
number of arbitrators should be odd just like it is in the United
States so that they cannot tie(Sheikh, 2013). This is true
especially when there are multiple arbitrators. The parties that
are concerned can be allowed to choose arbitrators and shall file
an arbitration instrument with the authority that is known for
competency of hearing a dispute. This same document will have
to be signed by both parties in the dispute or their delegated
attorneys as well as by the arbitrators. The arbitration should be
able to answer the following questions: What is the subject
matter of the dispute? What are the names of the parties
involved? What are the names or arbitrators and have they given
consent? When all these have been covered, the copies of the
arbitration documents are attached.
The competent authority shall then record all the applications of
the arbitration that have been submitted to them and it is upon
their power to give a decision of either approving or disproving
the arbitration. There are times when the subject matter of the
arbitration will only be heard according to the provision of the
arbitration law. This is especially in cases where the parties that
are involved in the dispute agree to the process of arbitration
before even the dispute arises and at times when there are
sanctions of arbitration instrument is a given conflict.
According to this law of arbitration, the clerk in charge of and
who is competent and who is originally supposed to hear the
dispute is to be in charge of any notification as well as all the
notices that are legal under this law.
In case the case is not given the end decision on the indicated
date that is given in the arbitration instrument, the parties can
agree to extend the time. In matters regarding time allocation to
the hearing and decision making in the arbitration, the parties

first have to fix the arbitration time limit for decision making
but the arbitration team will offer their award exactly 90 days
from the day when the arbitration instrument was accepted and
approved. The litigants are in fact allowed to take the matter to
the authorities who were originally supposed to hear the dispute
so that they can present the subject matter or if they want to;
they can also extend the time limit for the dispute: Time is thus
another very important time that matters when it comes to
arbitration by the governments of Saudi Arabia as well as in the
United States.
In the case when the parties involved fail to choose arbitrators
or in the case where one party in the dispute does not appoint
the arbitrators chosen by him; or in the case where one or more
arbitrators withdraws from the arbitration process or refuses to
work due to any contingency arising thus preventing him from
undertaking the hearing or the whole process of arbitration, the
parties have to stipulate on what to do next(Najjar, 2017). There
are also times when the arbitrator may be dismissed before the
arbitration process is over, the, the authority that is originally
competent for hearing arbitration cases will have to appoint the
arbitrators who will continue with the process with the request
of the parties that have interest in the expedition the arbitration
of course with the parties concerned present or absent when
they are called to a hearing to be held for this same reason. The
arbitrators to be chosen should match or should be
complimentary in number to the number that was agreed upon
by all the parties and the decision that will be given here will be
final and binding.
In fact, arbitrators are only dismissed with the consent of the
parties otherwise they will continue to arbitrate whether they
are competent or not. When an arbitrator is dismissed, he has
the right to claim for compensation in the case where he had
started work prior to dismissal if the dismissal is not his fault.
The same will not be removed from the judgment except for
purposes that arise after filing the arbitration instrument. There
is also a procedure that is followed when an arbitrator is to be

dismissed.
For instance, a request to dismiss the arbitrator will be made for
purposes that are equal to those that can make a judge to be
dismissed and the request is given to the authority that is
originally purported to hear the arbitration in five days starting
from the day when the party is given a notification or appointed
date by the arbitrator or starting from the days when signs and
reasons for disqualification occur(Najjar, 2017). At a hearing
that is made for these reasons, a ruling on the same issue of
disqualification will be made and the parties and the arbitrator
whose dismissal is made are summoned. With reasons which are
given, the ruling decides whether the reasons are enough for
dismissal or what next they can do. If the reasons are attributed
to the arbitrator, there is no compensation that can be given.
However, if the reasons for dismissal are not attributable to the
arbitrator, then there will be compensation as will be decided at
the hearing.
In case one of the arbitrators die before the process of
arbitration is completed, the arbitration will not expire and the
time of the award will be extended by thirty days. However, the
arbitrators may with reasons decide to extend the time of the
award to be longer than just thirty days. This is the same
extension- 30 days- that is given when an arbitrator is newly
appointed to replace a dismissed arbitrator or to replace an
arbitrator who has withdrawn.
Due to any circumstances that pertain the dispute subject
matter, the arbitrators may extend the time for an award; but
they need to have majority required for making the award and
they have to give grounds for this action. The majority opinion
of the arbitrators can be given them the award and in case they
are permitted to settle, then the award has to be given without
any other considerations ever. The document of award has
among other items an instrument of arbitration, summary of the
statements of all the parties that are involved in the dispute as
well as the documents that are supportive together with the
reasons for the award and its text, date and issue. It should also

have the signatures of all the arbitrators(Born, 2015). In case
any of the arbitrators refuse by any reasons to sign the award,
the same needs to be recorded in the award document together
with reasons.
Under an investigation procedure, all awards that have been
passed by the arbitrators have to be filed in five days with the
authority who is originally capable to hear the dispute. The
parties will be notified with copies of the awards. The parties
are then allowed to either submit their rejections and objections
against what has been issued by the arbitrators to the authority
where the award is filed within fifteen days from the day when
they are notified about the arbitrators’ award. If they do not do
so within this stipulated time; the award will be final.
In case one or more parties are not satisfied with the award of
the arbitrators within the specified period in the preceding
article, the authority originally competent for hearing the
dispute will have to decide whether they will reject it or issue
an order so that the award is executed. When the authority who
is originally competent to hear the dispute gives an order to
enforce the arbitrators’ award, it becomes an order. This also
means that the order will be executed when any of the
concerned parties requests is and also when there is no factor
that can prevent its execution and subsequent enforcement in
the Shari’ah. This is also where Shari’ah come sin and its
influence in the arbitration process.
When the award is made by the arbitrators with the order of
execution in accordance with the preceding article has the same
weight and force as a judgment that has been made by the
authority that had given the order(Greenberg, Kee, &
Weeramantry, 2014). After the arbitration process is finally
over, the fees to be given to arbitrators will be reached from a
combined agreement of both parties involved in the dispute.
After the approval of the arbitration documents, the authority
who is purported to hear the arbitration case deposits the sum
amounts that are not paid to the arbitrators. The arbitrators will
then be paid one week from the date of the order for the award

enforcement.
In case there is a dispute regarding the arbitrators’ fees or
where there was no prior agreement regarding the same topic,
the authority competent of hearing the dispute shall come in to
decide on the matter and in this case, its judgment will be taken
as final.
· How sharia law influences arbitration in Saudi Arabia
Shari’s Law comprise of introduced and comprehensive set of
arbitration rules that give arbitration a force that is similar to
that of the official litigation. The Sharia Law also is responsible
for the regulation of all the procedures and steps of the arbitral
process starting from the time when agreements are done until
the time when the awards are enforced. In Saudi Arabia, the
history of Sharia Law dates back to 1931 coming with
provisions of the Code of Commercial Courts of 1931.
However, it is noted that during this time, the Code of
Commercial Courts was not perfect and sharia courts greatly
failed to recognize any arbitration clauses.
This can be attributed to the fact that the arbitration awards and
their enforcements were voluntary. In addition, sharia Law had
a wrong interpretation regarding the recognition of arbitration
clauses and the awards that were given by arbitrators affected
the arbitration process in Saudi Arabia for a long
time(Greenberg, Kee, & Weeramantry, 2014). This made
arbitration only a theory in Saudi Arabia for long but it was not
practiced. Later in 1983, Saudi Arabia enacted the Arbitration
Code of 1983 and this tried to outdo many challenges that were
related to the first code in many ways but still, it did not give
the clear and ultimate solution to the issue of arbitration in
banking arbitration. Thus, it was only applicable in some
arbitration and not applicable in others.
Arbitration has become a very popular dispute settlement
method in Saudi Arabia, especially after succeeding to remove
many jurisdictional boundaries so that they left a binding and a
core binding outcome. Sharia- Law is used as the principal
source of legislation in Saudi Arabia with Saudi Arabian

Government issuing laws as well as regulations that do not
conflict with the established laws and principles of Islamic
Law. In Saudi Arabia, Islamic laws are so much respected and
almost every activity and action rotates around the Islamic law
because the nation is Islamic with a belief that the principles
are the rulings of God as opposed to the creation of man. This
means that Sharia Law is held higher than any other rule of law
in the nation.
This is also meant to say that in Saudi Arabia, the public policy
includes the compulsory terms of Sharia Law. Looking at it
keenly, then it can be noted that the wording of article 55 is a
total setback against the Saudi Arabia’s enforcement of arbitral
awards and there is no resolution can be given because the
Sharia Law is resolute in the nation and there are no
expectations that it will be changed. There is no way this can be
changed because people live with the principles of Islamic
religion. For instance, in Islamic religion, there are some
prohibitions in the Islamic commercial law like the interest laws
or the riba, gharar or the avoidance of transactions based on
luck and chance and even maisir and these will be hard to
connect to other legal systems (Baamir, 2016).
However, it is clear that all these are founded on a given
special rationale and it is part of the nation’s public policy
rules. Sharia Law such to a very great extent influence and
impact the arbitration process in Saudi Arabia making it quite
different from what happens in the United States which has
mixed religions. It is noted that these influences are originating
from their religious beliefs that are rioted in Islamic teachings
about relationships between man and God and amongst
mankind.
It is also important to note that the rules and regulations on
public policy are perceived and applied in the arbitration
procedures of an international award. Saudi Arabia in most
cases use a more transparent case law and codifies the Sharia
Laws that are established categorically. Those that align with
their principles are acceptable while those that are against their

principles and the principles of Islamic religion are left out.
They aim at encouraging consistent rulings and while they
protect their religious principles, they also secure the legal
certainty. When rules are applied in a transparent manner, there
is a possibility that precautions are taken by arbitrators like
offering rendering of awards, it is a potential way of
considering the avoidance of violation of Saudi Arabian public
policy rules and this can allow the rest of the award executable.
Unlike in Saudi Arabia, the United States recognizes and
enforces the foreign arbitral awards. In the United States also,
they understand that in order to perform better in arbitral
awards and to offer legal channels that are standard, they have
to enforce the needs of the respective state so that the services
can be within the jurisdiction of that nation or state. This is the
main reason why each of the state in the US is given
jurisdiction according to its own respective needs, besides the
existence of the federal law. In most cases, the natural and
substantive power requires a framework in order to ensure that
there are no unpredictability and different practices. Thus, the
New York Convention which has within it 149 states acts as the
core international legal instrument when it comes setting
international standards for the enforcement of foreign arbitral
awards.
Article V [5] of the New York Convention notes that there are
given situations where the arbitral award may be rejected
especially when there is a violation of the public policy of the
state from where enforcement is sought. The grounds that in
most cases considered in order to reject should be non-
recognition in the enforcement of arbitral awards. Because of
the fact that there are many states and each one of them is
different in terms of social organization and structure, economic
and legal background, application of the same legal law will
bring different outcomes some which will be negative and
others positive(Derains & Schwartz, 2015). In order to avoid
discrepancies, there should be a big need to observe the
differences and ambiguities that exist in each of the states. This

also takes into consideration the many differences that are in
the states. This is quite different in Saudi Arabia where there is
no consideration of any other differences but the Islamic
principles in all nation.
· Arbitration and Saudi Arabian Women
If there is one nation that really discriminates women is Saudi
Arabia. In Saudi Arabia, women are not allowed to anything
that regards law. However, it is true that in the current century,
so many women are learned and they can successfully go
through these processes. The problem is that they are not given
any opportunity to do anything that can be called bringing the
society together. It is also clear that in the past centuries, they
were not even allowed to go to school or even drive. It is only a
year ago when Saudi Arabian women were allowed to drive and
in the last year also, they were allowed to start attending
football matches.
To the Saudi Arabians, this is neither discrimination nor
segregation, but adhering to the rules and regulations of their
Islamic principles. These principles do not allow women to
participate in such public social areas that are not within the
home environment. A woman is in most cases made to do works
that are related to their gender such as taking care of the family
and not in works that are related to men such as office works!
Looking at the procedure of choosing an arbitrator in Saudi
Arabia, some of the characteristics they use are: the person must
be a Saudi Arabian, must be a male citizen, must be a Muslim,
must be eighteen years and above and must be of good conduct.
In addition, he should be trained in the arbitration process such
that he understands all the arbitration processes in and out.
From these considerations, it is clear that the women are not
given the opportunities to arbitrate but only men(Greenberg,
Kee, & Weeramantry, 2014). This is also not bound to change
easily because the principles which governed them from the past
are still principles that govern them today and there are no
expectations to change.
The person must also be a Saudi Arabian because he could have

understood the policies and regulations of the nation and will
thus have to problem especially in applying the Shariah Law.
Looking at the procedure of choosing an arbitrator, one will
clearly see that women are not likened in such professions and
they are also not allowed. The customs that are followed must
conform to the principles of the Islamic religion and in most
cases, it is about principles by which people live. They should
also be acceptable not only in the community or society but also
before God who is taught to be the creator of everything and
whose intentions are that man should relate well with each other
and should not use each other for personal gains.
Unlike Saudi Arabia, in the United States women are given
equal opportunities as long as they are educated and they know
the arbitration procedures. When choosing arbitrators also, they
do not consider only people from the United States because
there are far many races and the nation will not depend on a
single race for such processes. In addition to being any member
who is able to arbitrate, the women are given chances of
arbitrating and they normally do very well.
Even though someone is not formally trained to arbitrate in
Saudi Arabia, the person needs to have the knowledge and skills
especially about Shariah and the arbitration process. As they
arbitrate more and more cases, their knowledge grows more and
more until they become experts. The most important issue in
Saudi Arabia is to understand the basic principles of Islam and
the Shariah law.
· Negotiation in the U.S and Saudi Arabia
Just like the arbitration situation, Saudi Arabia is very rigid
when it comes to negotiation. Whatever subject matter is in
place, Saudi Arabia so much observes their principles that have
to align with the Islamic principles. On the other hand, the U.S
recognizes that cultural differences can affect negotiations and
therefore, the first step in any negotiation is to look and search
for the cultural differences between the parties that are

involved. However, it is clear that Saudi Arabia is so much
ahead in uncertainty avoidance due to the fact that they adhere
to their beliefs and principles, something absent in the
American politics. Both countries have almost the same measure
when it comes to long term orientation, which translates to why
the negotiating persons should be selectively chosen. While the
U.S is leading in individualism and a search for individual gains
in the negotiations, Saudi Arabia is against the principle of
individualism and therefore, they have to look at the matter
from the roots of its conflicts and ensure that the decision befits
all parties involved in the negotiation.
There are four steps of negotiation in the U.S; non-task
sounding which is also touching on the activities related to the
actual negotiation. A person has to be trusted until proven
wrong which a non-task sounding process is. This is not true in
Saudi Arabia where people depend on strong relationships and
where trust has to be given before even the negotiation starts.
This is a simple way to say that Saudi Arabia has a polychromic
nature and a diffuse culture that integrates with work and
individual life. In addition, it is clear that Saudi Arabia has a
culture that is synchronic and although they might be involved
in more than one activity, all the activities including schedules
and appointments are to be based and are subordinate to
relationships.
· Conclusion
Arbitration and negotiation are terms that can be used
interchangeably because they all denote the same meaning, of
tackling a conflict and reaching an outcome. The arbitration
procedures and processes are quite different in United States
and Saudi Arabia. In the United States, one has to arbitrate
based on legislated laws and regulations while in Saudi Arabia,
the arbitration is based on the principles of Islamic teaching
that are believed to be God’s teachings. This means that in
Saudi Arabia, the government and everything else is ruled by
Shariah which is also borrowed from the Holy Quran while in
the U.S arbitration founded from the constitution. In addition,

in the United States, the women are allowed and anyone can
arbitrate as long as the person qualifies, but in Saudi Arabia,
there are conditions that apply only to Saudi Arabians male
citizens.
References
Baamir, A. Y. (2016). Shari’a Law in Commercial and Banking
Arbitration: Law and Practice in Saudi Arabia. Routledge, 2016.
Born, G. (2015). International Commercial
Arbitration:International and USA Spectscommentary and
Materials. Kluwer Law International, 2015.
Derains, Y., & Schwartz, E. A. (2015). A Guide to the ICC
Rules of Arbitration. Kluwer Law International, 2015.
Greenberg, S., Kee, C., & Weeramantry, J. R. (2014).
International Commercial Arbitration: An Asia-Pacific
Perspective. Cambridge University Press, 2014.
Najjar, N. (2017). Arbitration and International Trade in the
Arab Countries. BRILL, 2017.
Sheikh, F. E. (2013). The Legal Regime of Foreign Private
Investment in Sudan and Saudi Arabia. Cambridge University
Press, 2013.
Shore, L., Schaner, L., & Chiusa, J. L. (2018). International
Arbitration in the United States. Wolters Kluwer Law &
Business, 2018.

of 17
CIS512 W11 Discussion Due 3/18/18
"Course Conclusion" Please respond to the following:
· You have just completed ten (10) weeks of an advanced
computer architecture course. Imagine you have been asked to
create a one-day training course that highlights the important
elements of what you have just learned within the past ten (10)
weeks.
. Create a hierarchy of no more or no less than five (5) of the
most important topics that you believe that a one-day course
entitled “Advanced Computer Architecture: The Essentials
Presented in One Day” should address. Provide a detailed
rationale for each of the five (5) topics.

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