201412.31
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Turkey’s New Arbitration Centre

Turkish National Grand Assembly, after waiting a long time, enacted the Istanbul Arbitration Centre Law and on 29 November 2014, an act numbered 6570 for the establishment of the Istanbul Arbitration Centre was published in the Turkish Official Gazette. The enforcement date of the new law is on 1 January 2015.

The Istanbul Arbitration Centre is planning to act as a supervisory body to provide arbitration and alternative dispute resolution services for both international and domestic disputes in Turkey.

It is true to say that Turkey is too late and very behind to have such functioned body to provide alternative dispute resolution and arbitration services alternative to the court system comparing to the developed and most of the developing countries.

The Aim of the Istanbul Arbitration Centre

The aim of the Istanbul Arbitration Centre is to establish a new private body to provide arbitration and alternative dispute resolution services for both foreign and domestic disputes.

The functions of the Istanbul Arbitration Centre are;

  • To set up the rules for arbitration and alternative dispute resolution
  • To provide arbitration and alternative dispute resolution services
  • To promote arbitration and alternative dispute resolution and encourage and support academic publications and cooperate with relevant foreign and domestic intuitions

The importance of the Istanbul Arbitration Centre

The Istanbul Arbitration Centre is specifically important for foreign companies doing business in Turkey to give them an opportunity to resolve their dispute through a specialized institution in Istanbul alternative to the lengthy court procedure.

It is also important for Turkish companies for dealing their disputes in the local arbitration centre instead of other international arbitration intuitions which would significantly decrease their cost of arbitral proceedings.

Another important aspect of the Istanbul Arbitration Centre is to increase the awareness of arbitration and alternative dispute resolution in Turkey and beyond. It is also expected to become a regional place for international arbitration and alternative dispute resolution meetings and conferences.

The establishment of the Istanbul Arbitration Centre is part of the Turkish government plans to set up the Istanbul Financial Centre and intended to further attract foreign investment by providing a more efficient dispute resolution mechanism in Turkey.


The new law is not set out the procedural rules. The Centre is expected to develop and adopt arbitration and alternative dispute resolution rules and procedures.

The governing structure of the Istanbul Arbitration Centre

The members of the general assembly of the Istanbul Arbitration Centre will be selected by the professional trade bodies, trade unions, Turkish Banking Associations and the Bar Associations and the governing board of the Centre will be selected by the general assembly.

There will be a two boards in the Centre namely the Domestic Arbitration Board and the International Arbitration Board.

Impact of the Istanbul Arbitration Centre

The New Arbitration Centres’ impact on the alternative dispute resolution and arbitration practices in Turkey will only be known after the procedural rules set out by the Centre. Even the fact that the law is enforced on 1 January 2015, the Istanbul Arbitration Centre’s Rules can only be chosen by the parties to resolve their dispute once the establishment of the Centre is completed.

Please do not hesitate to contact us if you have any queries in relation to arbitration and alternative dispute resolution procedure in Turkey.