The validity and challenges of third-party funding in the Saudi arbitration framework

<p>Third-party funding (TPF) is a new concept in which a third-party funds one of the disputing parties for potential share outcomes while the funded party is not obligated to repay the funds if the case is unsuccessful. In recent decades, the TPF has become more prominent for dispute parties in order who have facing financial obstacles to access to justice. However, the validity of the TPF agreements in Saudi Arabia remains to be determined. As the ruler of Saudi laws, Shariah prohibited agreements involving gharar (uncertainty) and usury as public policy concerns. Therefore, to break the silence surrounding TPF, this dissertation examined the validity of TPF from Shariah and Saudi perspectives. Consequently, the dissertation concluded that TPF complies with Shariah, based on the Muzara'ah partnership model, with sharing risks. This dissertation also introduces a Saudi roadmap for a TPF framework, which recommends the following (third-party funding arrangements in the Muzara'ah model comply with Saudi public policy. 2) Amendments to Saudi arbitration law require mandatory TPF disclosure to avoid conflicts of interest. 3) A code established by a supervisory body to monitor the TPF’s confidentiality and ethical practices in Saudi Arabia.</p>

Name thesis:degree_name

Doctor of Juridical Science (SJD)

Level thesis:degree_level

Dissertation

Year dc:date.available

2024

Author dc:creator

• Alanazi, Ahmed

Contributors dc:contributor

• Professor James Reeves, Professor Sunita Parikh, Professor Juan del Valle

• Third-party funding (TPF), Shariah, Saudi legal system, gharar (uncertainty), sharing risk, Muzara'ah, partnership
• Law

Language dc:language

English

Repository record dc:identifier

https://openscholarship.wustl.edu/law_etds/97

OAI identifier oai:identifier

oai:openscholarship.wustl.edu:law_etds-1095