Originally from Arbitration in the MENA

Preview Page

[1] INTRODUCTION

[1.1] Legal Framework 

Arbitration in Turkey has been a hot topic for the past few decades. Until recently, it was seen by many as an encroachment onto the courts’ jurisdiction. Turkey only acceded to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958) (“New York Convention”) on 2 July 1992, which entered into force on 25 September 1992. However, the process towards normalising arbitration accelerated thereafter. Within two decades, three important arbitration-related pieces of legislation were enacted: the International Arbitration Law (“IAL”)  relating specifically to international arbitration; the Code of Civil Procedure (Chapter 11) (“CCP”)  relating to domestic arbitration; and the Turkish Private International Law (“TPIL”)  regarding the recognition and enforcement of foreign arbitral awards, which mirrors the New York Convention. The establishment of the Istanbul Arbitration Centre (“ISTAC”) is another very important development for arbitration in Turkey. The effects of these developments can be observed in recent judicial decisions. With very few exceptions, courts are now adopting a pro-arbitration approach. It is therefore no overstatement to maintain Istanbul is on its way to becoming a regional centre of arbitration.