The long-awaited Law on Istanbul Arbitration Center
("the Law") has been passed on November
20, 2014 and entered into force on January 1, 2015.
The enactment of the Law is part of the Turkish government's
comprehensive plan to support the Turkish economy through new
financial reforms in order to establish Turkey as the new
international financial center.
In Turkey, arbitration is not widely used for domestic disputes.
The aim of the Law is to set up the Istanbul Arbitration Center
("the IAC") and regulate the procedures
and principles of the center's operations, which intends to
encourage the use of arbitration for both domestic and
In order to become a member of the IAC's General Assembly,
candidates must have at least 10 years experience in their
respective professions. The General Assembly will consist of 25
members chosen by different unions and associations for a period of
The Board of Directors of the IAC will consist of 5 permanent
members and 4 substitute members chosen among the members of the
General Assembly. Among these, at least 3 permanent and 2
substitute members must have a law degree. The Board of Directors
is the designated body to draft the rules for arbitration and the
procedures and principles of the center's operation.
Another important body of the IAC is the Advisory Board. The
Advisory Board will consist of 15 members with at least 5 years of
experience in the field of alternative dispute resolution. The
members of the Advisory Board will be required to provide
information and advice on arbitration.
The IAC will consist of two separate courts; a court of
arbitration for domestic disputes, and a court of arbitration for
international disputes. Each court of arbitration will have 3 legal
experts with at least 10 years of experience in their
It is worth noting that although the Law only provides
information on the duties, structure and the establishment of the
IAC, regulations relating to the aforementioned procedures and
principles and the rules of arbitration will be prepared and enter
into force within 6 months of the selection of the Board of
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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