Abstract: If the principle is that the judiciary is a manifestation of state sovereignty that is only exercised by the public authority assigned to it, and should only be exercised by the state, then the state, with its authority, can recognize some individuals or non-judicial bodies with the power to decide some of the disputes that are originally included In the mandate established for the judiciary in a specific area, and when certain conditions are met, these are called arbitrators, who are entrusted with the task of settling disputes that the law permits individuals to remove from the mandate of the public authority in the state. The Government Tenders and Procurement Regulation No. (M / 128) dated 11/13/1440 AH and its implementing regulations were recently issued, which also included a regulation that regulates the authority of government agencies and state-owned companies to resort to arbitration, and this is what we will clarify through this research.