Commercial Arbitration in Endowment Disputes in the Saudi System: A Fundamental Study in Light of Saudi Laws 10.35781/1637-000-136-007

Abstract

This research aims to clarify the permissibility of commercial arbitration as a means for resolving disputes related to endowments (waqf) within the Saudi legal system, particularly given the emergence of large, commercial endowment entities. The study is based on an examination of statutory texts within Saudi regulations. Using a doctrinal research methodology through the analysis of statutory texts in Saudi law, this research concludes that arbitration in endowment disputes is legally invalid. The fundamental reason is that the endowment custodian (the "Nazir") does not possess full legal capacity. This conclusion is based on the following points: 1. Arbitration Requirements: The Saudi Arbitration Law stipulates that parties to an arbitration agreement must have the full legal capacity to dispose of their rights. 2. Nature of the Custodian's (Nazir's) Capacity: Under the Law of Civil Procedure, the Nazir's capacity is not considered complete. His actions are subject to judicial oversight, and judgments against him must be submitted to the Court of Appeal for review, even if he consents to them. This indicates that his unilateral will is not fully recognized. 3. Link to Settlement (Sulh): The law prohibits arbitration in matters where settlement is not permissible. Since the Nazir's authority to engage in settlement is restricted, his authority to resort to arbitration is also consequently restricted.