Saudi Real Estate Arbitration Center
Synonyms: Real Estate Arbitration، Property Dispute Resolution Center
Last updated: 2026-08-03
Short Definition
A center under the Real Estate General Authority offering arbitration, conciliation and settlement services for property disputes, currently handling cases arising from the Ejar, owners associations and brokerage programs.
Overview
Legal Basis
The Saudi Real Estate Arbitration Center is one of the platforms of the Real Estate General Authority, the sector regulator established by Council of Ministers Decision 239 dated 25/4/1438H. The center specialises in settling and resolving property disputes and provides arbitration, conciliation and settlement services, currently hearing cases arising from the Ejar and owners associations programs and from brokerage, with all services delivered electronically. Arbitration rests on the parties agreeing to resolve their dispute through arbitrators of their own choosing rather than the competent judiciary, and is governed in the Kingdom by the Arbitration Law issued by Royal Decree M/34 dated 24/5/1433H.
Practical Example
A property management office in Dammam runs a subdivided residential complex under an owners association. A dispute arose with one owner over a SAR 45,000 account settlement relating to annual maintenance fees. Rather than filing a lawsuit that would take months and damage the commercial relationship, both parties turned to the Saudi Real Estate Arbitration Center, which hears cases arising from the owners associations program, and chose the settlement track to end the dispute by mutual agreement. All services are delivered electronically, saving travel and litigation costs while preserving the ongoing contractual relationship.
Common Mistakes
- ✗Confusing the Saudi Real Estate Arbitration Center with the enforcement court. The former is an optional track based on party agreement, the latter a mandatory route for documented contracts as enforcement instruments.
- ✗Assuming a judicial committee sits within the Ejar platform to adjudicate disputes, when the Saudi framework relies on the enforcement court for documented contracts, the general court for substantive disputes, and the center for arbitration and settlement.
- ✗Going straight to litigation in simple disputes open to conciliation, when arbitration and settlement are faster and preserve the commercial relationship.
- ✗Believing the center hears all property disputes, when it currently handles cases arising from the Ejar and owners associations programs and from brokerage.
International Differences
In the UAE, the Rental Disputes Centre in Dubai, the judicial arm of the Land Department, hears rental disputes across two instances with fees calculated as a percentage of contract value. Turkey has no specialised real estate arbitration centre, with disputes resolved through civil courts and compulsory pre-litigation mediation in certain commercial matters. In Egypt, disputes go before courts of first instance with no dedicated real estate arbitral body. The Saudi center differs in bringing arbitration, conciliation and settlement together under the sector regulator itself, with services delivered entirely electronically.
