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25 Arab L.Q. 221 (2011)
Jurisdiction over Banking Disputes in Saudi Arabia

handle is hein.journals/arablq25 and id is 227 raw text is: Arab Law Quarterly B RI L L Arab Law Quarterly 25 (2011) 221-228 brill.nI/alq Jurisdiction over Banking Disputes in Saudi Arabia Zuhair S. AI-Herbish* Legal Counsel, Riyadh, Saudi Arabia Abstract The establishment of the Committee for the Settlement of Banking Disputes (CSBD) was a milestone in the development of the Saudi Arabian banking system. Its mere existence as a dispute settlement forum for eligible claims has provided the Kingdom's commercial banks with a significant measure of assurance that their valuable services to the Kingdom's economy will not be derailed through lengthy litigation by non-specialized entities. In the opinion of the author, however, the role of the CSBD can be significantly enhanced and reinforced by the implementation of two measures: restructuring the CSBD so that it has two levels; and establishing various 'first instance' committees of the CSBD in the King- dom's major commercial hubs in the interest of speedy settlement of eligible disputes. Keywords jurisdiction; banking dispute; Committee for the Settlement of Banking Disputes (CSBD); Saudi Arabia 1. Introduction The role of commercial banks in developing and developed countries alike cannot be over-emphasized. Commercial banks are, indeed, the pillars of any economy; acting as financial intermediaries between depositors and borrowers of deposited funds. Their significance is particularly notable in countries whose economic growth is a function of an efficient private sec- tor, funded principally by commercial banks. It is axiomatic that a healthy investment atmosphere in any jurisdiction in the modern world is the sine qua non for an efficient banking system; an atmosphere in which commercial banks are properly regulated and fur- nished the necessary guarantees to enable them to serve the economy and contribute to both growth and development. Thus, in all developed econo- mies in the world today, legislation designed to protect and enhance the services of commercial banks is an integral part of the legal landscape. 0 Koninklijke Brill NV, Leiden, 2011 DOI: 10.1163/157302511X551455