Introduction

This introduction presents an overview of key concepts discussed in the subsequent chapters of this book. The book examines various issues in arbitration law and practice in relation to Islamic Shari'a law and the law of Saudi Arabia in general, and to arbitration in conventional banking disputes in particular. It also compares available remedies for the settlement of banking disputes in Saudi Arabia in order to identify those most appropriate. The book provides a simplified reference to the principles of Shari'a law and its theories, as well as Saudi law and practice in general. In Saudi Arabia a major problem relating to conventional banking disputes developed, as the principles of conventional banking contradict the principles of Shari'a, especially when it comes to particularly sensitive issues such as interest. As a general rule, Saudi courts are not competent to settle disputes that arise out of banking activities as defined by the Banking Control Law of 1966.