1. A comparative study in Saudi Arabia and China
Culture Influence in International Commercial Arbitration and the significance of Art. 24 of the UNCITRAL Model law.
A comparative study in Saudi Arabia and China

2. Differences in Legal Culture Part II Common and Civil Law
Introduction
What is Culture?
Differences in Legal Culture
Part II
Common and Civil Law
UNCITRAL Model Law:
Oral or Written Proceedings
Discovery and Pre-hearing Procedures
Treatment of Witnesses
Record Keeping
Part III
Saudi Arabia
China
Part IV
What cultural considerations should be adopted in International Commercial Arbitration?
Conclusion

3. Introduction Rapid expansion of International Commercial Arbitration
Conflicts of Culture v Cultural Differences
Two main legal systems creating laws, codes and guidelines
Intl. Commercial Arbitration – ADR
Formation of contracts affected by culturally developed preferences

4. What is Culture?
The communalities that tie different societies into larger groups of similar understandings are called culture
“The common theme of the various cultural definitions as the shared knowledge and the meaning systems use a particular group of people that are objective and subjective”, Erez and Earley (1993)
Culture influences many aspects of life, attitude, social organisation, thought patterns, body language and time sense
Thought patterns have immediate effect on the process of reasoning, particularly the legal one
Cultural background strongly influences the legal systems and understandings, hence arbitration expectations.

5. Differences in Legal Culture
The essence of a legal culture may be formally expressed in variety of codes, statutes and judicial decisions which are set out in the principles and rules of law governing arbitration
The development of a legal culture may also be seen in the response of social values that are ascribed to law, such as the interpretation of law in a fair, clear and efficient manner
Law impact on culture and culture upon law
Common features v differences between categories must be drawn, such as commodities, maritime, “classic” commercial arbitration – whether institutional (such as ICC) or ad hoc and arbitrations involving a State.

6. Common Law and Civil Law
Fundamentals of a legal culture lie upon two legal systems or “cultures” that are predominant in the world today – Common Law and Civil Law
Cultural background of each participant influences all aspects of international commercial arbitration, such as choice of arbitration rules, arbitrators, “the seat” and expectations in process and outcome
Common Law lawyer expects an adversarial approach
Civil Law lawyer expects an active judge and an inquisitional system

7. UNCITRAL Model Law
The rules provide for great discretion in determination of the procedure
The most common differences that influence the expectations in arbitration:
If the proceedings are oral or in writing
Discovery and pre-hearing procedure
Treatment of other witnesses, specifically parties and cross examination; and
Record keeping

8. Saudi Arabia
Arbitration has an important role in the mentality, history and customs of Arab nations
In contrast to other regional systems, the approach of International Commercial Arbitration in the Arab world is truly culturally based as religion (the Muslim faith) is the core foundation
The only arbitration process available in Saudi Arabia is the procedure regulated by the Act (M/46, 1983) – not based on UNCITRAL Model Law
Difficult jurisdiction - the 1992 Constitution requires that the Quran and the Sunna are the sole sources of law
Hearings are fundamental and witnesses preferred to written evidence

9. China
Asia - very different cultural approach to International Commercial Arbitration
Two important differences illustrate this:
first concept is analysed through the influence of Western Common Law and Civil Law, which forms the basis of the Asian legal systems
second important difference of culture influencing the arbitral procedure is confidentiality
Arbitration Law 1994 establishes the legal system for arbitration / new era of arbitration in China
CIETAC – China International Economic and Trade Arbitration Commission

10. What cultural considerations should be adopted in International Commercial Arbitration?
Cultural bias and stereotyping
Politics and religion
Miscommunication (verbal and non-verbal)
Cultural precepts for Negotiation

11. Conclusion
International Arbitration as a process has moved forwards at a very rapid pace in the past decade
However, there are problems that rules do not solve
UNCITRAL Rules are often deliberately vague to avoid prejudicing the arbitral tribunal’ s discretion
Challenges ahead include dealing with issues such as cost, delay, and enhancing Domestic Court support (and reducing Domestic Court interference)
There is a recognizable influence of culture even in the experienced lawyer or arbitrator
The lack of change risks undermining the perception amongst some users of International Commercial Arbitration as a “fair and just” process

12. Thank you for your attention!