SCCA Arbitration Costs

The Saudi Center for Commercial Arbitration (“SCCA”) is emerging as one of the leading arbitral institutions in the Middle East and an increasingly significant player on the global stage. For parties considering or involved in an SCCA arbitration, understanding the potential costs involved is essential for effective budgeting and informed decision-making. Clear knowledge of these costs also helps manage expectations, avoid disputes over fees, and ensure that parties approach the process transparently and efficiently.

In SCCA arbitrations, parties must generally budget for the following heads of cost: (1) SCCA fees; (2) legal fees; (3) expert fees (if necessary); (4) hearing costs; and (5) other costs. In most cases, legal fees make up the largest part of the overall arbitration costs.  A table summarising each of these costs and the timing of their payment is available for download here.

It is important to keep in mind, however, that the winning party’s costs are typically recoverable from the losing party.

This note will now examine the various costs that parties can expect to incur in SCCA arbitrations, particularly those under the 2023 SCCA Arbitration Rules (“SCCA Rules”) and their appendices, specifically Appendix I – Arbitration Costs and Fees, and the SCCA Fee Schedule for Regular Cases under the Rules (p. 47 of the SCCA Rules).

Heads of Cost in SCCA Arbitration

1. SCCA Fees

The first head of cost in an SCCA arbitration is fees paid to the SCCA itself, including (a) a registration fee, (b) administrative fees and expenses, and (c) the arbitral tribunal’s fees and expenses.

The SCCA charges rather modest administrative and arbitration tribunal fees. A comparison of the SCCA’s fees with those of other institutions, specifically the Dubai International Arbitration Centre (“DIAC”) and the International Chamber of Commerce (“ICC”) showed that, based on a USD 10 million claim with a sole arbitrator, the SCCA’s fees were estimated to be 31% less than those of DIAC and 37% less than those of the ICC.

The next sections examine each component of the SCCA’s institutional fees:

A. Registration Fee

The first cost to be paid in an SCCA arbitration is a non-refundable SAR 5,000 registration fee, payable by the claimant upon submitting its request to commence arbitration.

This fee will be credited to the Claimant’s share of the SCCA administrative fees (Appendix I, Article 1).

B. Administrative Fees

Next, the SCCA will determine its administrative fees and expenses, which are based on the amount in dispute (Appendix I, Article 2(1)), according to the table below:

The administrative fees can be calculated using the SCCA Fee Calculator (in SAR or USD).

The amount in dispute is calculated by adding together all claims filed by the parties, including the estimated value of non-monetary claims. Where a claim is not quantified or remains undetermined, the SCCA will determine the amount to be used for this calculation, taking into account the circumstances of the case (Appendix I, Article 4).

The SCCA will accordingly fix an advance deposit towards these fees to be paid equally by the parties, who are jointly and severally liable for the SCCA administrative fees and expenses (Appendix I, Article 2(1),(4)). The case file will not be transmitted to the arbitral tribunal until the advance deposits are paid (Appendix I, Article 5(2)).

C. Arbitral Tribunal Fees

In order to have an arbitral tribunal decide the parties’ dispute, the arbitrator or arbitrators must be compensated for their work.

The fees of the arbitral tribunal are, by default, calculated based on the amount in dispute, as are the administrative fees. However, the parties may agree to compensate the tribunal at an hourly rate before its constitution (Appendix I, Article 3(1)).

The table below shows the average amounts in tribunal fees when the tribunal fees are calculated according to the amount in dispute:

The arbitral tribunal fees can be calculated online using the SCCA Fee Calculator.

The arbitral tribunal fees for a panel of three arbitrators are three times the amount calculated for a sole arbitrator (Fee Schedule). It is important to note that where the amount in dispute is below SAR 4,000,000, the SCCA Expedited Procedure Rules (Appendix II of the SCCA Rules) will apply and the dispute will be decided by a sole arbitrator (Appendix II, Article 1(2)).

As with the administrative fees, where the tribunal fees are determined according to the amount in dispute, the SCCA will fix an advance deposit for the arbitral tribunal fees and expenses, which will be paid by the parties in equal shares (Appendix I, Article 3(1)(a)(1)).

The parties must also compensate the tribunal for its reasonable expenses, which will be determined by the SCCA at the conclusion of the proceedings. These expenses may include travel, accommodation, and other expenses incurred by the arbitrators for the purposes of fulfilling their obligations as arbitrators, and reasonable costs of expert evidence required by the tribunal (Appendix I, Article 3(3)).

If the arbitral tribunal appoints a tribunal secretary, the SCCA Secretary Regulations in force at the commencement of the arbitration will apply. Under these regulations, the tribunal determines the total amount of the secretary’s fees and expenses, which must be stated in the final award. Where the SCCA Fee Schedule applies, the secretary’s fees form part of the arbitral tribunal’s overall fees. In all other cases, the tribunal will fix an hourly rate for the secretary after consulting the parties and the SCCA Court. The secretary’s fees and expenses must be reasonable and, where applicable, may be charged separately. The parties are jointly and severally liable for these amounts (Appendix I, Article 8).

2. Legal Fees

In addition to the institutional costs mentioned above, parties should also account for the fees associated with their legal counsel and supporting team. These typically represent the largest share of overall expenses in an arbitration, as a hard-fought arbitration can require more than 1,000 hours of work by a party’s legal team.

Due to its commitment to transparency and predictability in costs, Aceris Law provides an online Arbitration Legal Fee Calculator based on the amount in dispute. Aceris offers reasonable, capped legal fees for representation in international arbitrations, allowing clients to benefit from high-quality advocacy with clear and upfront cost expectations. Alternatively, clients can opt for legal fees on a competitive hourly basis.

3. Expert Fees

Expert evidence is often used in international arbitration. Parties may appoint experts to provide independent opinions on technical or specialised issues that fall outside the arbitral tribunal’s expertise, such as the calculation of damages, project delays, or questions of foreign law. Experts usually present their findings in written reports and testify at the final hearing to help the arbitral tribunal make a well-informed decision.

When expert evidence is necessary, each party selects and pays for its own expert. However, to ensure that experts remain impartial and independent, the experts’ fees cannot be contingent on the outcome of the case.

4. Hearing Costs

Hearings are a key part of most arbitrations, and parties should also budget for hearing-related expenses. Although these costs usually make up only a small share of the overall arbitration expenses, they can still vary widely depending on several factors.

The main elements influencing hearing costs include:

• Whether the hearing is held virtually or in person.
• If in person, the choice of venue and the timing of the hearing.
• The length of the hearing.
• The number of participants (tribunal members, party representatives, legal teams, experts, witnesses, and others).
• The cost of a court reporter, which may include travel and accommodation.
• Catering expenses such as lunches and coffee breaks.
• Translation or interpretation services, if needed.
• Travel and hotel costs for the parties, their legal teams, and the arbitral tribunal.
• Other logistical expenses, such as printing or electronic data-hosting fees.

If an arbitration is bifurcated, meaning it is divided into two phases, the parties may need to fund two hearings, one for preliminary issues and another for the final merits if the case proceeds.

In most cases, hearing costs are shared equally between the parties, although the prevailing party may recover these expenses in the final award.

5. Other Costs to Consider

Parties should also be aware that smaller, incidental costs can arise at various stages of the arbitration process.

For instance, most arbitrations include a document production phase, during which one party may request the other to produce specific documents relevant to the dispute. Fulfilling such requests can require reviewing and sorting through large volumes of material.

Similarly, tribunals may ask that submissions be provided not only electronically but also in hard-copy form or on flash drives. In such cases, parties may incur extra costs for printing, equipment, and courier services to comply with these requirements.

If any documentary evidence or witness testimony is in a language different from that used in the arbitration, translation and interpretation costs should also be anticipated.

In short, parties should be prepared for small unforeseen expenses that may arise throughout the arbitration process, even when the major costs have already been accounted for.

Allocation of Costs in a Final Award

Article 40 of the SCCA Rules grants arbitrators the discretion to allocate the costs of the arbitration among the parties. It stipulates that the arbitral tribunal take “into account the circumstances of the case including the extent to which each party has conducted the arbitration in an expeditious and cost-effective manner” (Article 40(1)).

Often, this results in the winning party recovering its costs from the losing party. It may also mean that if a party has engaged in dilatory tactics to delay the proceedings, it may find itself with a less favourable cost award.

The costs of arbitration, as referred to in this article, include: the arbitral tribunal fees and expenses, the costs of assistance required by the Arbitral Tribunal, including expert fees, the SCCA administrative fees and expenses, the reasonable legal and other costs incurred by the parties, and any costs incurred in connection with an application for interim or emergency relief (Article 40(2)).

Conclusion

In conclusion, understanding the costs associated with SCCA arbitration is essential for any party considering this form of dispute resolution. By anticipating potential fees and expenses, parties can plan strategically, avoid unexpected financial burdens, and make informed decisions about how best to manage their case. Transparency around costs not only promotes efficiency and fairness but also helps ensure that arbitration remains a predictable, accessible, and effective alternative to litigation.

Parties should also bear in mind that even after obtaining a final award, additional expenses may arise if enforcement proceedings are required due to non-compliance by the losing party.

If you are considering initiating an arbitration under the SCCA Rules, or if one has been filed against your company, and you would like further information about the costs involved, please feel free to contact Aceris Law.