Recently, Ms. Wu Guohua (Annie), SCIA Arbitrator and Senior Partner at JT&N, was invited to speak at a seminar titled “Bridging China and the Middle East: Exploring Challenges and Opportunities in Business Investment and Dispute Resolution.” The seminar was hosted by the Shenzhen Court of International Arbitration (SCIA) in Riyadh, Saudi Arabia.
In her remarks, Ms. Wu first highlighted the robust growth of China-Saudi economic and trade relations. Bilateral trade volume surged from approximately $42.3 billion in 2016 to over $107.5 billion in 2024, making China Saudi Arabia’s largest trading partner. This significant increase in business interactions has led to a rise in the number and types of commercial disputes, spanning areas such as trade, construction, labor, and maritime affairs. In particular, construction-related disputes have increased significantly.
Drawing on her extensive experience representing Chinese enterprises investing and operating in Saudi Arabia, Ms. Wu offered several suggestions for companies to address these challenges:
Define Rights and Obligations Clearly in Agreements: Ambiguity, especially regarding technical standards, execution timelines, and local content requirements, should be avoided.
Draft Precise Dispute Resolution Clauses: Contracts should specify the arbitration institution, applicable law, and seat of arbitration. Ms. Wu referenced Article 81 of the new Chinese Arbitration Law, effective from March 1, 2026: “The parties may agree in writing on the seat of arbitration. Unless otherwise agreed by the parties regarding the law governing the arbitration proceedings, the seat of arbitration shall be the basis for determining the law governing the arbitration proceedings and the competent court. An arbitral award shall be deemed to have been made at the seat of arbitration”. For Chinese companies in Saudi Arabia, parties may agree to apply SCIA arbitration rules with Riyadh as the seat, meaning an SCIA award would be deemed made in Riyadh.
Strengthen Communication and Acknowledge Cultural Differences: Saudi business customs, legal traditions, and negotiation styles can differ significantly from China’s. Building mutual understanding and adopting a collaborative approach can prevent disagreements from escalating.
The event attracted over 120 legal and business professionals from more than 50 countries and regions, including China, Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman, Qatar, Iran, Iraq, Jordan, Turkey, Egypt, the United Kingdom, France, and others.