In a strategic move that reinforces the global shift toward more diverse and inclusive arbitration hubs, the Hong Kong International Arbitration Centre (“HKIAC”) and the Saudi Center for Commercial Arbitration (“SCCA”) signed a Cooperation Agreement, signaling a new era of institutional synergy between East Asia and the Middle East in the domain of international arbitration and alternative dispute resolution.

This partnership underscores a mutual ambition, to create a robust arbitration framework that transcends regional boundaries, supports cross-border trade, and anticipates the evolving needs of international commerce. The collaboration includes mechanisms for recommending arbitrators across jurisdictions, sharing institutional resources, conducting joint training programs, and co-developing advanced procedural standards.

HKIAC, long recognized for its leadership in arbitration involving Chinese and global entities, brings its established infrastructure and experience, while SCCA offers emerging-market dynamism and growing legitimacy as Saudi Arabia positions itself as a regional arbitration hub under its Vision 2030 reform agenda.

For businesses and legal professionals in Indonesia — particularly those engaging in projects funded by Gulf Cooperation Council (GCC) capital or Chinese outbound investments — this institutional alignment carries several implications. Firstly, as cross-regional cooperation expands, parties may increasingly encounter arbitration clauses referencing both HKIAC and SCCA rules or provisions. This partnership signals a broader trend, the decentralization of arbitration power away from traditional Western institutions toward a more multipolar arbitration order.

Legal advisors should anticipate and be prepared to navigate these multi-institutional clauses effectively. Indonesian arbitration institutions may soon find themselves in need of enhanced cross-border partnerships and procedural innovation to stay competitive and trusted in complex international disputes. Studying the models of institutional collaboration like HKIAC-SCCA, investing in arbitration training, and ensuring that local counsels are prepared to operate within this emerging ecosystem. This shift is not just institutional — it is strategic, global, and inevitable.

If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of the leading corporate law firms in Indonesia, with extensive experience handling similar matters. Our team of professional corporate and civil lawyers makes us one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.

Author:
Budhi Satya Makmur