In recent years, arbitration in turkey has emerged as a preferred method for resolving commercial disputes. Both local and international businesses are increasingly turning to arbitration due to its efficiency, confidentiality, and alignment with international legal standards. Turkey’s strategic location between Europe and Asia, along with its progressive legal framework, makes it an attractive arbitration hub for cross-border disputes.
The Legal Framework Supporting Arbitration
Arbitration in Turkey is governed primarily by the Turkish International Arbitration Law and the Code of Civil Procedure. These laws are aligned with the UNCITRAL Model Law, ensuring that Turkey meets global expectations in the resolution of commercial disputes. The country is also a signatory to the New York Convention, which facilitates the recognition and enforcement of foreign arbitral awards in more than 160 countries.
This legal structure provides businesses with confidence that arbitration proceedings in Turkey will be fair, efficient, and enforceable internationally.
Advantages of Choosing Arbitration in Turkey
One of the main reasons businesses choose arbitration in Turkey is the speed of the process compared to traditional litigation. Court cases can be delayed due to procedural complexities and backlogs, while arbitration allows for faster resolution, often within months.
Confidentiality is another key benefit. Unlike court trials, which are generally public, arbitration hearings in Turkey are private. This is particularly appealing to companies that want to protect sensitive business information.
Flexibility is also a strong advantage. Parties have the freedom to select arbitrators with specific expertise, choose procedural rules, and even decide the language of arbitration. This adaptability ensures that the dispute resolution process fits the needs of the involved parties.
The Role of Turkish Arbitration Centers
Several respected arbitration institutions operate in Turkey, including the Istanbul Arbitration Centre (ISTAC) and the Istanbul Chamber of Commerce Arbitration and Mediation Center (ITOTAM). These centers offer modern arbitration services that follow international standards. ISTAC, in particular, has gained international attention for its efficient procedures and expert panels.
These institutions also support the training and development of arbitration professionals in Turkey, ensuring the availability of experienced arbitrators who understand both local and global commercial practices.
Strategic Location and Growing Investment
Turkey’s unique geographical position makes it a natural bridge for trade and legal cooperation between Europe, Asia, and the Middle East. As foreign investment in Turkey continues to grow, the demand for neutral and effective dispute resolution mechanisms increases accordingly.
Arbitration serves this need well by providing a reliable alternative to litigation, especially in cases involving international contracts.
Conclusion
Arbitration in Turkey is becoming an increasingly attractive option for resolving commercial disputes, thanks to a robust legal foundation, experienced institutions, and its strategic location. Businesses seeking efficient, private, and enforceable solutions are recognizing the advantages that Turkish arbitration offers. As Turkey continues to invest in legal infrastructure and international partnerships, its role as a regional arbitration hub is set to expand even further.
