Alternative Dispute Resolution in Saudi Construction Projects: Strategies, Challenges, and Best Practices

Disputes are an inevitable component of construction projects, often resulting from the complexity, multi-party nature, and uncertainty that characterize the industry. In Saudi Arabia, the rapid expansion of the construction sector under the Kingdom’s Vision 2030 program has intensified the need for efficient dispute resolution mechanisms capable of maintaining commercial relationships and minimizing project disruption. Traditional litigation has frequently proven to be slow, expensive, and adversarial, prompting stakeholders to explore Alternative Dispute Resolution (ADR) methods such as arbitration, mediation, and adjudication. This paper examines ADR in the context of the Saudi construction industry, identifying its legal framework, institutional mechanisms, and cultural dimensions. It evaluates the role of the Saudi Center for Commercial Arbitration (SCCA) and other emerging bodies in shaping a modern ADR environment aligned with international best practices while accommodating the principles of Islamic law (Sharia). By analyzing current trends, comparative practices, and case experiences, this study highlights the opportunities and challenges for integrating ADR within Saudi Arabia’s rapidly evolving construction sector.