It used to that way, especially with car accidents, but considering that the foreigner usually had car insurance, it always made sense to admit full responsibility and have the insurance company pay. But now that appears to be changing.
Some of the largest foreign companies are breaking their relationships with local agents and becoming standalone companies, this isnt something that would happen if they felt they were not going to get a fair legal system.
The legal system itself is attempting to comply with the requirements of WTO membership to the extent that Saudi's no longer believe that they will automatically win in the local courts.
The still have a long way to go before the word of a chambermaid is taken over that of the IMF chief. But give a "little" credit where it's due
Mutt