Arbitration Legal Controls and their Impact on the Nature of Administrative Contracts in the Light of Governmental Tenders and Purchases Regulation Issued Under the Royal Decree No. (M/128) Dated 13/11/1440H.

Awad Ali Alanzi

Dr., Associate Professor, Law Department, College of Business Administration, Prince Sattam bin Abdulaziz University, Al-Kharj 11942, Saudi Arabia

Abstract:

This study investigates the influence of arbitration on the subjective characteristics of administrative contracts within the context of the Government Tenders and Purchases Regulation issued in 1440H in Saudi Arabia. The examination delves into the potential impact of arbitration on the distinctive legal standing of administrative authorities involved in administrative contracts. Employing a descriptive and analytical approach, the research scrutinizes pertinent legal documents, court decisions, and scholarly viewpoints. The methodology entails the analysis of provisions within the Saudi Arbitration Law and its Implementing Regulations, the Government Tenders Regulation and its Implementing Regulations, as well as precedents established in administrative court rulings. This investigation aims to comprehend the application of arbitration and its potential influence on established administrative law principles. The study discerns that the inclusion of arbitration clauses may facilitate investment by offering a expeditious and straightforward resolution for disputes. Nevertheless, it notes that arbitration has the potential to alter the subjective nature of administrative contracts, which typically endow authorities with distinctive rights over the administrative entity. Specifically, internal arbitration curtails the oversight and penalty powers of the administration to a certain extent. Moreover, international arbitration further affects the unique legal status of the administrative body, given that foreign arbitral awards carry binding authority and limit the scope of appeals. In light of these findings, the research advocates for the explicit preservation of fundamental principles governing the distinctive nature of administrative agreements, even when incorporating arbitration clauses. It recommends that foreign arbitration should be sanctioned only with ministerial approval on a case-by-case basis to mitigate its impact on administrative law principles. Furthermore, the study suggests that reinforcing domestic arbitration tribunals can contribute to striking a balance between meeting the needs of foreign investment and upholding the governance framework for public contracts.