What Is Arbitration?

Arbitration is an alternative dispute resolution (ADR) method in which parties agree to resolve their disputes outside of court, usually through a private and binding decision made by one or more arbitrators. The process is often faster, less formal, and more flexible than traditional litigation.

Legal Framework for Arbitration in Turkey

Domestic Arbitration

Domestic arbitration in Turkey is governed by the Turkish Code of Civil Procedure (Law No. 6100). This law applies to arbitration cases that do not contain a foreign element and provides clear guidelines on the appointment of arbitrators, arbitration procedures, and enforcement of arbitral awards.

International Arbitration

International arbitration is regulated by the International Arbitration Law of Turkey (Law No. 4686), which came into effect in 2001. It applies when there is a foreign element involved, such as a foreign party or cross-border transaction. This law is closely aligned with international standards, particularly the UNCITRAL Model Law, making Turkey an arbitration-friendly jurisdiction for foreign investors.

Key Arbitration Institutions in Turkey

Istanbul Arbitration Centre (ISTAC)

ISTAC is Turkey’s most prominent arbitration institution, offering modern rules and efficient administration. It provides both national and international arbitration services and has gained global recognition for its credibility and neutrality.

Union of Turkish Bars Arbitration Center

This center offers arbitration services primarily for legal professionals and commercial disputes within Turkey. It operates in accordance with domestic arbitration laws and is recognized by Turkish courts.

International Institutions

Many international parties also choose institutions such as the ICC (International Chamber of Commerce) or the LCIA (London Court of International Arbitration) when arbitrating disputes related to Turkey. These bodies provide additional neutrality and are especially favored in high-value or complex cases.

Key Features of Arbitration in Turkey

1. Arbitration Agreement

An arbitration agreement is the cornerstone of the process. In Turkey, it must be in writing and can be included either in the main contract (as an arbitration clause) or as a separate agreement. Turkish courts generally uphold the validity of arbitration agreements unless they are ambiguous or involve non-arbitrable matters.

2. Selection of Arbitrators

Parties are free to appoint one or more arbitrators, and there is no requirement for them to be Turkish nationals or lawyers. If parties cannot agree, the appointment is made by the competent court or arbitration institution.

3. Arbitral Procedure

Turkish arbitration laws grant flexibility in determining the procedural rules. Parties may choose institutional rules (such as ISTAC or ICC) or opt for ad hoc arbitration. The principles of equality, impartiality, and the right to be heard must always be observed.

4. Seat and Language of Arbitration

The seat of arbitration determines the applicable procedural law. Parties can choose Turkey or another country as the seat. Additionally, the language of arbitration can be freely determined by the parties, which is especially beneficial for international disputes.

Enforceability of Arbitral Awards in Turkey

Domestic Awards

Domestic arbitral awards are enforceable through a simplified court recognition process. Unless challenged within 30 days, the award becomes final and enforceable.

International Awards

Turkey is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958). This means that foreign arbitral awards are generally recognized and enforced in Turkey, subject to limited exceptions such as public policy violations or lack of due process.

Advantages of Arbitration in Turkey

1. Speed and Efficiency

Court litigation in Turkey can be time-consuming due to procedural complexities and caseloads. Arbitration offers a faster resolution, often concluding in 6–18 months depending on the case.

2. Confidentiality

Unlike court proceedings, arbitration is private. This confidentiality is particularly valuable for businesses that need to protect trade secrets or sensitive commercial information.

3. Expertise of Arbitrators

Parties can select arbitrators with specialized knowledge in the relevant field—whether it be construction, finance, energy, or international trade—ensuring a more informed and relevant decision.

4. Flexibility

Arbitration allows for tailored procedures, including digital hearings, language preferences, and procedural timelines, all of which are attractive for international companies.

5. International Enforceability

Thanks to Turkey’s membership in the New York Convention, awards made in Turkey are enforceable in over 160 countries and vice versa, providing significant value in cross-border transactions.

Challenges and Considerations

1. Cost

While arbitration can be cheaper than litigation in the long run, upfront costs (such as arbitrator fees, institutional charges, and legal representation) can be high. Parties should weigh this against the benefits of speed and enforceability.

2. Judicial Intervention

Although Turkish courts generally support arbitration, they can still intervene in certain stages—such as in the appointment of arbitrators, interim measures, and enforcement proceedings. However, courts are becoming increasingly arbitration-friendly.

3. Arbitrability Limitations

Some matters, such as criminal cases, family law disputes, and certain administrative issues, are not subject to arbitration under Turkish law. It’s crucial to assess whether a dispute is arbitrable before drafting an arbitration clause.

Recent Developments and Trends

Turkey has taken significant steps to promote arbitration. The government and legal community are working to position Istanbul as a regional arbitration hub. ISTAC’s increased visibility, integration of online dispute resolution, and enhanced international cooperation are indicators of Turkey’s commitment to modern arbitration practices.

Moreover, Turkish courts are showing greater deference to arbitration clauses and are less likely to interfere with arbitral awards unless there are compelling reasons. This is a positive trend that reinforces Turkey’s reputation as a reliable arbitration venue.

The Role of an Arbitration Lawyer in Turkey

Choosing the right arbitration lawyer in Turkey is critical to success. These professionals bring in-depth knowledge of Turkish and international legal principles. They work within esteemed institutions such as an Ankara law firm, ensuring tailored strategies for arbitration cases.

Whether you’re a multinational company or a foreign investor, finding the best lawyer in Turkey is essential for legal clarity. Legal advisors with a strong command of English are particularly valuable. An English speaking lawyer or English speaking lawyer in Turkey offers seamless communication and professional service.

Engaging with a legal advisor in Turkey ensures you are backed by expert knowledge in both domestic and international laws. These professionals often work at reputable institutions like an Ankara law office or a trusted lawyer in Turkey.

Benefits of International Arbitration in Turkey

International arbitration in Turkey has grown rapidly. With Turkey’s strategic location, legal reforms, and experienced arbitration panels, it is now a credible venue for resolving transnational disputes. Major corporations rely on a dedicated international law firm to manage cases effectively.

An experienced Ankara lawyer understands the local judicial culture and international expectations. Whether part of an Ankara law firm or independently practicing, they provide robust representation in arbitration and other legal services.

Choosing the Right Ankara Law Firm

A top-tier Ankara law firm combines local insight with global expertise. These firms often have teams of bilingual or multilingual professionals, making it easier for foreign clients to navigate the legal system with an English speaking lawyer in Turkey by their side.

From contract disputes to investment arbitration, a seasoned arbitration lawyer can guide you through each step of the process. Their deep familiarity with the intricacies of arbitration in Turkey ensures clients receive strategic advice and effective advocacy.

Whether you’re seeking expert legal counsel, navigating complex cross-border disputes, or entering commercial agreements, Turkey offers a robust platform for arbitration and legal representation. Partnering with a reputed lawyer in Turkey or an Ankara law office can make all the difference. Explore more about international arbitration in Turkey and secure your legal future today.

Introduction

Arbitration is often perceived as a process by which the parties seek monetary damages.[1] However, the number and variety of the remedies available for the parties in international arbitration are very broad, indeed.[2] In this context, in addition to the monetary compensation, an arbitral award may (and often does) also include “punitive damages and other penalties, specific performance and restitution, injunctions, declaratory relief, rectification, filling gaps and adaptation of contracts”^[3]

First of all, although the transactions in the international commercial arbitration and enforcement processes are being carried out confidentially and therefore it is not possible to provide a certain ratio; the studies carried out with the contribution of the arbitral institutions show that in “a great variety” of the cases, parties seek non-monetary reliefs.[4] Furthermore, according to the same studies, the arbitral tribunals are also not reluctant to grant such remedies as it will be illustrated below.[5]

Among these different options, in this paper, “the specific performance” remedy is evaluated and its common kinds are presented along with the factors that should be taken into account in ordering specific remedies.

Specific Performance

To begin with a brief definition of the concept, [6] with reference to the definition made by Samaa A.F. Haridi “specific performance” as a remedy can be defined as remedies ordering “(…) the (a) party (to) perform the obligations under the contract as required by the contract”[7]

In the practice of international arbitration; it is possible to observe that such remedies may be granted as the final determination or as interim measures.[8] In addition to that, it is also not rare to see that the specific performance remedy is granted along with the other types of remedies.

Common types of specific performance

As noted above, it is possible to mention a variety of non-monetary reliefs.[9] Being one of these remedies, “the specific performance” can also be held under some sub-divisions.

In this context, firstly, the specific performance may require a party to carry out certain acts and/or actions. Giving consent to a transfer, issuing power of attorney or handing over certain equipment[10] may be listed as some examples of such remedies.

For illustrating this type of specific performance remedy, it is possible to refer to some reported arbitral awards. For example, in one case reported by the ICC in which the “common law” applied, the Arbitral Tribunal ordered “the transfer of the Respondent’s 30% of the Participating Interest to the Claimants.”[11] Similarly in another ICC case, in which the “civil law” applied, the Respondent is ordered “to perform under the terms of the Agreement to enable the Claimant to sell, market, and distribute products covered by the Agreement” [12]

Secondly, the specific performance ordered by an arbitral tribunal can also be an “omission” which prohibits a party from carrying out certain actions. For example, cessation of acts breaching the contract,[13] not raising objections to certain procedures, not preventing certain acts would be examples of such “omissions”.

This type of remedy has also been widely applied by the different arbitral tribunals. To illustrate this type of remedy with the reported cases, it is possible to note that in a case reported by the ICC in which the “common law” applied to the merits of the Case, the Respondent was ordered to “cease any use of the trademark”[14]. Similarly, in a case reported by Vienna International Arbitral Centre, the Respondent was ordered “to refrain from transferring certain data to third parties without the consent”[15].

Factors and indications in ordering specific performance

In addition to the availability of specific performance as a remedy in international arbitration, the appropriate use of it also bears importance.[16] In this context, arbitral tribunals should evaluate a number of factors before ordering specific remedies.

The first of these factors is the agreement of the parties, which flows from the fact that arbitration is a consent-based process and the parties -save for some exceptions- are capable of agreeing on the powers of the arbitral tribunal. Accordingly, the parties may specify the remedies that may be ordered by the arbitral tribunal. Therefore, there is no doubt that the parties may exclude the “specific performance” remedy in the arbitration agreement.[17] In the absence of such agreement, the arbitral tribunal should apply the procedures available in applicable law.

The second factor that is relevant for the decision of specific performance is the applicable law. In this context, it should be taken into account that different legal systems have different regulations/applications for “specific performance”. It should be noted that every jurisdiction may bring different restrictions on the type of the specific performance remedy as well as the procedure for the adaptation of such remedies.

Herein the traditional differences between the common and civil law jurisdictions should also be emphasized.[18] More specifically, it is argued that in civil law jurisdictions specific performance is traditionally the primary remedy to be ordered upon the request of the Claimant, while in common law jurisdictions specific performance is often regarded as a secondary remedy to be applied in cases in which ordering damages would not be equitable.[19]

In addition to that specific regulations of “the law of the seat” and the “law of the jurisdiction parties will seek enforcement” would be relevant for an arbitral tribunal in ordering specific performance.

It is needles to note that the specific circumstances of the case would also be very important in deciding the specific performance.[20]

Conclusion

To conclude, it is possible to note that contrary to the common perception, in international arbitration alternative remedies to the monetary compensation is available. The existence of such remedies further contributes to the flexibility and efficiency of the arbitration process.

In this context, being one of these alternatives, “specific performance” should be regarded as an important tool in the “remedial armory of an arbitral tribunal”[21] which would enable the arbitral tribunal to reach a more equitable result.

However, it is vital for arbitral tribunals to evaluate the agreement of the parties, applicable law, and the specific circumstances of the case. Since ordering specific performance may not be suitable for the case and even more, applicable law may prohibit the arbitral tribunals to order such reliefs.

BIBLIOGRAPHY

Blackaby N and others, Redfern & Hunter On International Arbitration (6th edn, 2015)

Haridi AFS, ‘Remedies and Costs’ (Lecture in CIArb Diploma in International Arbitration, 2020)

Heider M, ‘International Arbitral Centre Of The Austrian Federal Economic Chamber (Vienna International Arbitral Centre))’, Performance as a Remedy: Non-Monetary Relief in International Arbitration: ASA Special Series No. 30 (1st edn, JurisNet 2011)

Hoellering M, ‘Remedies In Arbitration’ (1985) 20 The Forum (Section of Insurance, Negligence and Compensation Law, American Bar Association

Jones D, ‘Remedial Armoury Of An Arbitral Tribunal: The Extent To Which Tribunals Can Look Beyond The Parties Submissions’ Arbitration’ (2012) 78 Arbitration : the journal of the Chartered Institute of Arbitrators

Mazza F, ‘International Chamber Of Commerce (ICC)’, Performance as a Remedy: Non-Monetary Relief in International Arbitration: ASA Special Series No. 30 (1st edn, JurisNet 2011)

McKendrick E, and Maxwell I, ‘Specific Performance In International Arbitration’ (2013) 1 The Chinese Journal of Comparative Law

Moses M, The Principles And Practice Of International Commercial Arbitration (Cambridge University Press 2010)

Schneider M, ‘Non-Monetary Relief In International Arbitration: Principles And Arbitration Practice’, Performance as a Remedy: Non-Monetary Relief in International Arbitration: ASA Special Series No. 30 (1st edn, JurisNet 2011)

[1] Michael E. Schneider, ‘Non-Monetary Relief in International Arbitration: Principles and Arbitration Practice’, Performance as a Remedy: Non-Monetary Relief in International Arbitration: ASA Special Series No. 30 (1st edn, JurisNet 2011), p. 3.

[2] Michael F. Hoellering, ‘Remedies in Arbitration’ (1985) 20 The Forum (Section of Insurance, Negligence and Compensation Law, American Bar Association, p. 516.

[3] Nigel Blackaby and others, Redfern & Hunter on International Arbitration (6th edn, 2015), p. 515.

[4] Schneider (n 1) p. 16.

[5] ibid.

[6] However, it should also be noted herein that the definition of the “specific performance” term is subject to different views in different jurisdictions. This paper confines itself from presenting these discussions and provide an exhaustive definition on which there is a convergence.

[7] Samaa A.F. Haridi, ‘Remedies and Costs’ (Lecture in CIArb Diploma in International Arbitration, 2020)

[8] Schneider (n 1) p. 32.

Margaret L Moses, The Principles and Practice of International Commercial Arbitration (Cambridge University Press 2010), p. 187.

[9] Schneider (n 1) p. 7.

[10] ibid p. 14.

[11] Francesca Mazza, ‘International Chamber Of Commerce (ICC)’, Performance as a Remedy: Non-Monetary Relief in International Arbitration: ASA Special Series No. 30 (1st edn, JurisNet 2011), p. 144.

[12] ibid p. 147.

[13] Schneider (n 1) p. 14.

[14] Mazza (n 11) p. 146.

[15] Manfred Heider, ‘International Arbitral Centre of the Austrian Federal Economic Chamber (Vienna International Arbitral Centre))’, Performance as a Remedy: Non-Monetary Relief in International Arbitration: ASA Special Series No. 30 (1st edn, JurisNet 2011) p. 138.

[16] Blackaby and others (n 3) p. 519.

[17] ibid p. 515.

[18] This paper does not assert such a difference between çivil and common law systems. It is argued by some authors that both systems’ typical approach to specific performance is similar. See: E. McKendrick and I. Maxwell, ‘Specific Performance in International Arbitration’ (2013) 1 The Chinese Journal of Comparative Law

[19] E. McKendrick and I. Maxwell, ‘Specific Performance in International Arbitration’ (2013) 1 The Chinese Journal of Comparative Law, p. 200.

[20] Blackaby and others (n 3) p. 519.

[21] Doug Jones, ‘Remedial Armoury of an Arbitral Tribunal: The Extent to Which Tribunals Can Look Beyond The Parties Submissions’ Arbitration’ (2012) 78 Arbitration: the journal of the Chartered Institute of Arbitrators.

Law, as well as all other disciplines, could not stay immune from adopting itself to the world-wide technological evolution and digital transformation. Global effects of the Covid-19 pandemic fostered this adaptation by moving legal processes into online platforms. Arbitration is one of these legal processes that is affected from the Covid-19 pandemic and adopted itself into technological developments. Below is an overview of arbitration hearings and how they are conducted online in today’s world.

Arbitration, as a dispute resolution mechanism, sets an alternative to litigation before domestic judiciary. It is conducted through an arbitral tribunal that consists of a single arbitrator or a panel of arbitrators who are appointed by the parties of the dispute or an international mechanism. As this brings a neutrality element to arbitration, parties of a legal relationship may agree to solve any dispute arising among them as regards to this relationship through the way of arbitration.

Such an agreement between the parties can be formed before or after the occurrence of a dispute. Along with agreeing on arbitration as the dispute resolution method, parties are also free to determine the rules applicable to the arbitration proceedings and the seat of arbitration. It is this emphasis on the will of the parties to freely determine the applicable law and the seat of arbitration that allows them to agree also on the conduct of arbitration hearings online.

Conducting arbitration hearings online became essential, especially for international arbitration, with the restrictions introduced globally due to the Covid-19 pandemic. UNCITRAL Rules requires a foreign element within the contract between parties of a dispute in order to categorize an arbitration as international. This foreign element can be satisfied, inter alia, with a difference on the nationalities of parties or the location of seats of businesses.

As parties of an international arbitration tend to agree on a third country as the seat of arbitration, for neutrality purposes, restrictions, such as those on travel, caused by the Covid-19 pandemic. Since these restrictions make it unbearable for parties that choose a third state as the seat of arbitration to attend hearings, it has become inevitable to have online hearings and adapt regulations on arbitration accordingly.

Some examples from the regulations made by arbitration institutions to allow conducting hearings online are as follows:

Istanbul Arbitration Center (ISTAC)

ISTAC in Turkey published “Online Hearing Rules and Procedures” for the online arbitration process. According to Article 2 of the Rules and Procedures, “At the request of any party or in cases where the Sole Arbitrator or the Arbitral Tribunal deems appropriate, hearings or meetings may be conducted through video conference or teleconference.” In accordance with these rules and procedures, a sole arbitrator or a panel of arbitrators, by taking the opinions of the parties, can determine the software of the online hearing, confidentiality and security measures, and other issues before conducting the hearing.

Then, the sole arbitrator or the panel prepares the technical infrastructure for the online hearing and shares it with the parties. In this case, submissions of documents can be done electronically upon the permission received from the sole arbitrator or the panel. Likewise, the sole arbitrator or the panel can also decide to record the audio of the hearing with the permission of the parties and then to transcript them into written records, at the expense of the parties.

Hong Kong International Arbitration Center (HKIAC)

HKIAC gives importance to the online arbitration system and has published a guideline for virtual hearings. The parties can choose the online procedure by filling out the online virtual hearing inquiry form or contacting directly to the arbitration center. HKIAC provides an IP-based video conference system that can support up to eight different locations, a Cloud-based video conference system that is compatible with all major video conference platforms, and flexible pricing options. And for the audio conference, it provides high-speed connection to more than 80 countries and supports up to 30 lines.

International Centre for Settlement of Investment Disputes (ICSID)

ICSID is another institute that provides services for online arbitration as “available in ad-hoc proceedings under UNCITRAL and other non-ICSID sets of rules at competitive rates”. ICSID, additionally, provides dedicated support, high-definition audio and video, real-time document display, virtual chat function, World Bank Group’s stringent security, virtual court stenographer. ICSID uses Cisco’s Webex platform for online hearings.

It is clear from these observations that the requirements of our age and changes in technology are affecting legal processes while arbitral institutions are adapting themselves according to these developments. It still however, needs further steps as there is need for more guidelines on online arbitration, together with more available platforms for virtual hearings.

Introduction

The use and popularity of international commercial arbitration in Turkey has been increasing since the 2000s due to the increase in the globalization of trade and cross-border disputes involving Turkish businesses. This development has been accompanied by significant changes in Turkish legislation that reflect pro-arbitration policies endorsed by Turkey. Today, many complex and cross-border disputes relating to key industries such as energy, telecommunications, IT, infrastructure, intellectual property and construction, where one of the parties is Turkish, are routinely referred to international arbitration. Following a brief overview of this mechanism, we examine the developing relationship between Turkey and international commercial arbitration below.

Arbitration: Private International Commercial Dispute Resolution

Arbitration, as is well known, is a dispute resolution process, based on a private agreement between the parties, whereby one or more independent individuals are called upon to resolve a certain dispute in a final and binding manner, by applying the law that is chosen by the parties.

Advantages of Arbitration over Litigation

The perceived advantages of arbitration makes it the preferred means for international commercial dispute resolution. These advantages may be listed as follows:

Flexibility:

One of the essential characteristics of the arbitration process is the use of flexible procedures.  In contrast to national courts that are bound by rigid procedural rules, arbitration tribunals can decide on the organization of proceedings by taking into account the parties’ wishes and their underlying dispute for a fair and cost-efficient resolution of the dispute. The party autonomy principle underlies the whole arbitral process. It is the agreement of the parties that establishes the jurisdiction of the arbitrators, that determines the extent of their powers, the procedure, the seat and the language of the arbitral process, and the law applicable to the merits of the dispute.

The law that is applicable to the merits of an international dispute may be the law of a state, or legal principles not connected to any state’s legal order. One may add to the above that arbitral institutions are demand-driven and can respond more quickly to the changing needs of businesses, as we see in the innovative measures taken by arbitration institutions such as ICC, CAM and the Turkish international arbitration center, ISTAC during the Covid-19 pandemic.

Confidentiality:

Although there is no legally-enforceable guarantee of confidentiality in international arbitration, arbitral proceedings are, in principle, confidential. This confidentiality may extend to the very existence of the arbitration itself. Therefore, it is substantially more likely to produce a non-public process than national court litigation.

Neutrality:

Neutrality is a major concern for claimants in international litigation. Even where the judge is perfectly impartial, having to pursue a case according to the procedure and rules of the counterparty’s jurisdiction creates an additional challenge for foreign parties. This is what the parties can avoid by choosing arbitration, where they are provided with a neutral forum for dispute resolution, with the opportunity to present their cases to an objective and impartial tribunal.

Expertise:

In commercial arbitration, the parties have the ability to choose arbitrators having the required expertise, which is better suited for resolving complex technical, scientific or industrial disputes than resorting to court litigation, where judges, who may have little or no experience in the relevant fields, are randomly assigned to cases.

Ease of Enforcement:

1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, coupled with the policy around the world towards favorable treatment of international commercial arbitration awards makes it much easier for an arbitral award to be enforced in another country than court judgments. The arbitration laws of a large number of countries based on the UNCITRAL Model Law on International Commercial Arbitration provide for ready enforcement of arbitration agreements, court assistance with the conduct of arbitral proceedings and less court interference with arbitral proceedings.

Arbitration and Turkey

Previously, the use of arbitration was limited in Turkey. Although Turkey has been a signatory to the New York Convention, the Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention), the European Convention on International Commercial Arbitration and many bilateral investment treaties that foresaw international arbitration for dispute resolution, no distinction was initially made between domestic and international arbitrations.

Following the enactment of the Turkish International Private and Procedural Law, the conditions for the recognition and enforcement of foreign arbitral awards were aligned with Article V of the New York Convention, however, in practice, parties still faced strict and complicated procedures.

History of Arbitration in Turkey

The first major shift in Turkey’s approach towards arbitration was reached when the constitutional amendment in 1999 made it possible for concession contracts to contain arbitration clauses. This amendment allowed inserting international arbitration clauses into public infrastructure agreements entered into between foreign investors and the Turkish state.

With the adoption of the International Arbitration Act based on UNCITRAL Model Law on International Commercial Arbitration in 2001 and the regulation of domestic arbitration in the Turkish Procedural Code, Turkey endorsed a contemporary system of domestic and international arbitration, according to which arbitrations with their seat in Turkey and that contain a “foreign element” as specified in the law fall under the scope of the International Arbitration Act.

Legal Framework

According to this legal framework, all disputes that do not concern the in rem rights of immovables or the disputes subject to the parties’ disposal are arbitrable. While this means that disputes arising from family law, criminal law, administrative law, employment and consumer claims and bankruptcy cannot be settled by arbitration, commercial matters are resolvable by way of arbitration. In the case of international arbitrations that are covered by the International Arbitration Act, courts are allowed very limited grounds to interfere with the awards and they are under a general obligation of expediency and support.

Another significant step in Turkey’s consistent move towards becoming a truly arbitration-friendly jurisdiction was taken in 2015 with the establishment of ISTAC as Turkey’s international arbitration institution by Law No. 6570, to handle the resolution of both domestic and international disputes through arbitration or an alternative dispute resolution method. ISTAC rules contain provisions familiar to international arbitration practitioners, including modern instruments such as rules on emergency arbitration and fast-track arbitration for smaller claims.

ISTAC

Since its establishment, ISTAC has been showing steady progress in becoming an international center for handling arbitration cases with parties from different jurisdictions. The Center is also promoted by the Turkish government as part of arbitration friendly policies and regulations, according to which all public authorities should contemplate including arbitration clauses that refer to ISTAC in their domestic and international agreements and, within the scope of Public Procurement Law, in disputes with a foreign element, they have a choice of referring disputes to arbitration under ISTAC Rules or the provisions of the International Arbitration Act instead of national courts.

SUMMARY

As a result of all the pro-arbitration efforts outlined above, Turkey is now an arbitration friendly jurisdiction with a modern international arbitration law on par with other major jurisdictions. The advantages of arbitration as a dispute resolution method for the cross-border operations of Turkish businesses and state institutions alike also induce Turkish parties in key industries to choose arbitration for dealing with their disputes. It must also be mentioned that Turkey’s unique location and its close commercial and historical ties with both Eastern and Western countries present a great opportunity for Turkey to become a significant arbitration hub for international business.

Needless to say, when doing business in Turkey it is very important to receive the best legal services possible to ensure long-term business relationships. Lawyers that are well acquainted with key industries with a good understanding of the local business culture and an extensive experience in handling international arbitration cases can provide the most efficient legal assistance in every step of commercial transactions, from contract negotiations to dispute avoidance to dispute resolution.