The arbitration system, which offers speed, expertise, and confidentiality in resolving commercial disputes, is being increasingly preferred by the business world every day. Prof. Dr. Ziya Akıncı, President of the Board and the Arbitration Court of the Istanbul Arbitration Centre, explained the point Turkey has reached in the field of arbitration and their vision to make Istanbul an international arbitration hub. For those seeking fast, expert, and confidential solutions for commercial disputes, arbitration offers an effective alternative beyond traditional judiciary. With binding decisions in a short time, lower costs, and arbitrators who are industry experts, arbitration is becoming the new preference of the business world.
Due to the nature of commercial life, the emergence of disputes is inevitable. However, today's business world no longer wants to leave these problems to legal processes that last for many years. Emerging as a prominent method among alternative dispute resolution paths, arbitration has become one of the solution methods that trade needs, with its advantages such as speed, expertise, confidentiality, and flexibility. The Istanbul Arbitration Centre (ISTAC), the most important institution of Turkey in this field, is moving towards becoming a rapidly preferred center not only for national but also for international disputes. We discussed the journey of the Center since its establishment, the opportunities arbitration offers for the business world, and Turkey's position in the field of arbitration with Prof. Dr. Ziya Akıncı, President of the Board and the Arbitration Court of the Istanbul Arbitration Centre.
Arbitration has become an increasingly preferred method, especially in the resolution of commercial disputes. Briefly, what is arbitration?
Arbitration is a dispute resolution method in which disputes that the parties can freely dispose of are resolved by arbitrators determined by the parties themselves instead of the official judicial bodies of the state. Arbitration is a direct judicial activity that also includes the petition stage and hearings, similar to the judicial system. The arbitral award rendered in arbitration is binding and enforceable, just like a court decision. However, in order to resort to arbitration, the parties must necessarily enter into an arbitration agreement or add an arbitration clause to the contract they have drafted without any reference to a court.
Why should the business world choose arbitration for dispute resolution?
Actually, arbitration has very important features that meet the needs and expectations of the business world. The business world needs speed at almost every stage, especially in cash flow. Trade is dynamic, and arbitration is the path that best meets this need. In arbitration, results can be obtained in much shorter periods compared to courts. For example, at the Istanbul Arbitration Centre, where I am the president, you receive your binding decision within a period of six months in the normal arbitration procedure and three months in the expedited arbitration procedure. Today, at our center, disputes under 5 million TL are resolved in expedited arbitration within three months. Another important point is that there are various sectors in our country in which our companies operate. The needs and expectations of each sector are naturally different from each other. In addition, every sector has its own specific legal regulations and customs. In arbitration, the proceedings are conducted by arbitrators who have special technical and sectoral knowledge about the dispute. While choosing arbitrators, parties look at the arbitrator's knowledge in that sector. This point is also taken into consideration when an arbitrator is appointed at the Istanbul Arbitration Centre.
What is the most important feature of the system in your opinion?
Perhaps the most important feature of arbitration is that the file is confidential. Hearings are confidential, decisions are confidential, which allows parties to protect their trade secrets and reputation. There are many other reasons why arbitration is preferred. Among these, the fact that party autonomy is much more at the forefront in arbitration and it requires fewer formalities compared to courts. For example, the parties can determine the language to be used and the place of arbitration with their own will when resolving their dispute. In other words, when we say Istanbul Arbitration Centre, it should not be thought that the dispute is resolved only in Istanbul. For example, there are disputes resolved in Ankara, Konya, and Gaziantep. Also, the Secretariat of the Istanbul Arbitration Centre can provide services in many languages such as English, German, and French. Thus, the freedom of will of the parties regarding the language of arbitration is also supported by the Secretariat.
How do you evaluate the development of arbitration in Turkey? What progress has been made in this field in recent years?
Especially with the increasing interest of the business world in alternative resolution methods, arbitration has become a highly preferred mechanism. The establishment of the Istanbul Arbitration Centre is also a major factor in this development. The Istanbul Arbitration Centre has very significant experience; from the moment it was founded, it not only provides quality arbitration services but also conducts intense awareness and training activities to establish an arbitration culture. Today, we have very valuable arbitrators in Turkey, each of whom is on their way to becoming an authority in their own field. Our arbitrators sign very successful decisions. It is also worth mentioning the Court of Cassation here. Our Court of Cassation is very arbitration-friendly and gives very good decisions that instill confidence in the national and international arena. This paves the way for Turkey and the Istanbul Arbitration Centre to be accepted and used not only in national arbitrations but also in international arbitrations.
Let's talk a little bit about the Istanbul Arbitration Centre. Why and how was the Istanbul Arbitration Centre established?
The Istanbul Arbitration Centre was established in 2015 with Law No. 6570 as part of the Istanbul Finance Centre project. It was aimed to carry out the necessary activities for the implementation and dissemination of arbitration and other alternative dispute resolution methods. In the general assembly of the Istanbul Arbitration Centre, there are TOBB, TBB, YÖK, TİM, Ministry of Justice, Banks Association of Turkey, Participation Banks Association of Turkey, CMB, Borsa Istanbul, BRSA, CMB, TESK, and TİSK. These institutions are very valuable because, in fact, the business world and the legal world are brought together with this structure. Great responsibilities have fallen upon these institutions to disseminate arbitration and for Turkey to have a place in the arbitration world. You might say, isn't arbitration confidential? Do the institutions see our files? Each institution and every organ of the Istanbul Arbitration Centre fulfills its own responsibility. Our institutions and other bodies are not informed about the files; privacy is in question. This is very valuable.
What is the goal of the Istanbul Arbitration Centre? What have you achieved so far?
The goal of the Istanbul Arbitration Centre is to make Turkey a trusted and leading country in arbitration and other resolution methods. It is very important not to leave any question marks in the minds of the parties with the judicial activity and for the justification provided to create satisfaction.
Well, what kind of path does the Istanbul Arbitration Centre follow in line with this goal?
The Istanbul Arbitration Centre has achieved great success. We have become the third-largest arbitration center in Europe in terms of the number of cases. In order to increase arbitration awareness in Turkey, we have organized many trainings and conferences in cooperation with many institutions and organizations, including universities and professional organizations. At the point we have reached today, disputes from many cities in Turkey are being resolved at the Istanbul Arbitration Centre. Foreign parties also easily accept the Istanbul Arbitration Centre and are very open to bringing their disputes here. Companies established in many countries from all over the world (such as the USA, Germany, England, Poland, Belgium, China, Senegal, Kyrgyzstan, Russia, Iran) resolve their disputes at the Istanbul Arbitration Centre. The fact that the Istanbul Arbitration Centre is a reputable center both in our country and abroad is a very valuable achievement not only for us but also for our country.
What are the most important factors effective in this success?
Of course, the contribution of the names in our Courts is also great here. In our National Court, along with me and our Secretary-General, there are Prof. Dr. Ejder Yılmaz and Prof. Dr. Celal Göle, who are the mentors of mentors. In our International Court, besides us, there are some of the biggest names in arbitration such as Gary Born, Dr. Hamid Gharavi, and Prof. Dr. Bernard Hanotiau, and we can easily call these names the Ronaldo and Messi of arbitration. Also, we are an innovative arbitration center. We follow technological developments, and we try to adapt these developments to arbitration. In addition, we are the first arbitration center in the world to codify the med-arb practice. We like to act with a pioneering and creative vision on such issues. We have established many specialized commissions within our body, and they also make very valuable contributions to the dissemination of arbitration and meeting the needs of the sector.
Is the reason you have an International Court with foreign experts because there are also foreign files?
Yes, the Istanbul Arbitration Centre was designed not only to resolve domestic disputes but also to resolve international disputes. Indeed, disputes involving foreign parties are also being resolved at our Center. Although one of the parties is Turkish and the other is foreign in our international files, for the last two years, applications where both parties are foreign have started to come. This can be said to be the first result we have received from the work we have done towards the goal of making Turkey a dispute resolution place in the region.
How will the business world benefit from the Istanbul Arbitration Centre?
Actually, it's quite easy; it is enough for the business world to write in their contracts: "All disputes arising out of or in connection with this contract shall be finally settled by arbitration in accordance with the Arbitration Rules of the Istanbul Arbitration Centre." Of course, there will be a problem if the word court is mentioned anywhere else in the contract, so it is necessary not to include the word court.
You just said that you are the first arbitration center to codify the med-arb practice. What kind of method is med-arb? Should it be preferred?
As the Istanbul Arbitration Centre, we became the first arbitration center in the world to systematize the med-arb practice with its rules. Med-arb, as the name suggests, is a stepped (or phased) dispute resolution method that combines mediation and arbitration. In this system, parties are first given the opportunity to mediate to reach an amicable agreement, if the parties cannot reach an agreement at this stage, the arbitration proceedings continue, and thus a final decision is reached. This method can provide benefits to the parties in terms of cost and time. We have seen many examples where parties have reached an agreement with our med-arb rules. A culture of compromise is very important for the business world because sometimes you do not want to reach the litigation stage with people you will continue to work with. For this reason, if you ask whether it should be preferred, definitely yes. As in arbitration, it is enough to add to your contract here that disputes will be resolved in accordance with the Istanbul Arbitration Centre Med-Arb Rules.
Is there a message you would like to give before finishing?
I would like to give this message especially to the business world and the legal community: We now have a local alternative in global standards for dispute resolution. The Istanbul Arbitration Centre is not just a judicial institution, but also a strategic institution that increases Turkey's competitiveness. The ownership and evaluation of arbitration, alternative dispute resolution mechanisms, and the Istanbul Arbitration Centre will also directly positively affect our country's investment climate.
Who is Prof. Dr. Ziya Akıncı?
I was born in İskenderun. Since my father was a Public Prosecutor, I stayed in the places where he served. I am a graduate of the Faculty of Law at Dokuz Eylül University. I completed my master's degree at Ankara University and Exeter University, and my doctorate at Istanbul University. I am the Head of the Department of Private International Law at Galatasaray University, and I am also the founding partner of Akıncı Law Office. I serve as the President of the Board and the Arbitration Court of the Istanbul Arbitration Centre. I have previously served as a member of the ICC Court. So far, I have served as an arbitrator and party counsel in many international arbitration cases.
This content has been translated using artificial intelligence technology.