International Court of Arbitration Considers Opening Regional Center in Turkey
Wednesday, April, 23, 2014
The International Court of Arbitration (ICA) is strongly considering opening a regional center in Istanbul, Turkey, if draft legislation designed to improve arbitration and legal matters for financial institutions based in Turkey is approved, as most expect will happen.
Turkey is attempting to position itself as a regional financial, investment, and arbitration center much like London is to Europe. This would require an overhaul in the judicial system, historically viewed as too slow and old-fashioned for modern investors, and the establishment of firm arbitration-friendly policies, as arbitration is considered the best way of settling disputes – faster and less expensive than extended litigation.
If the legislative overhaul is approved as expected, the establishment of a regional center of the International Court of Arbitration in Istanbul would instantly boost Turkey’s prominence in the international money game, and confirm their dedication to being a country friendly to outside investment. However, the ICA has expressed concerns over maintaining its independence and autonomy and has sought assurances from Turkey that both would be respected if such a regional center was established.
Turkey has worked both internally and externally, enacting arbitration-friendly legislation and signing arbitration-friendly treaties with other countries and international organizations, to revamp its image and internal workings for investors. The establishment of the ICA in Istanbul would be the final achievement propelling Turkey into the world of international finance.