ARBITRATION

International Arbitration in Turkey: A Practical Guide for Foreign Companies

Mart 2, 2024
By
Att. Gökberk Tekin
Att. Gökberk Tekin

Attorney Gökberk Tekin is the Founder and Managing Partner of Tekin & Counsel, an international law office focused on complex cross-border disputes and high-value commercial matters. He is a dual-qualified lawyer, admitted as an Attorney-at-Law in Türkiye and as a Solicitor of England and Wales. He is also a Fellow of the Chartered Institute of Arbitrators (FCIArb).

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Turkey has become one of the more active arbitration jurisdictions in the region, driven by a steady flow of cross-border construction, energy, manufacturing and distribution disputes. For foreign companies doing business with Turkish counterparties, understanding how international arbitration in Turkey actually works in practice — not just in theory — is essential to protecting commercial interests when a relationship breaks down.

This article sets out a practical overview of the legal framework, the institutions most commonly used, and the issues that most often determine whether an arbitration succeeds or stalls.

The Legal Framework Governing Arbitration in Turkey

Domestic arbitration seated in Turkey is governed primarily by the Turkish Code of Civil Procedure (HMK), while international arbitration with a foreign element and a Turkish seat falls under the International Arbitration Law No. 4686 (IAL), which closely follows the UNCITRAL Model Law. Turkey is also a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which is the foundation for enforcing foreign awards against Turkish assets and Turkish awards abroad.

For parties drafting contracts with Turkish counterparties, this dual framework matters: the choice of seat determines which procedural law applies, while the choice of governing law for the substantive contract is a separate question entirely. Conflating the two is one of the most common drafting errors we see in practice.

Which Institutions Are Commonly Used?

Parties with Turkish-related disputes typically choose among several institutional frameworks, each with distinct characteristics:

  • ICC (International Chamber of Commerce) – the most frequently chosen institution for high-value cross-border contracts involving Turkish parties, valued for its scrutiny of awards and global enforceability track record.
  • ISTAC (Istanbul Arbitration Centre) – Turkey’s own modern arbitration institution, increasingly used for both domestic and international matters, with rules closely modelled on leading international institutions.
  • LCIA (London Court of International Arbitration) – frequently selected where English law governs the underlying contract, particularly in finance, payments and technology-related agreements.
  • Istanbul Chamber of Commerce Arbitration and Mediation Centre – commonly used in domestic commercial disputes and certain cross-border matters with a Turkish nexus.

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See also
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Key Practical Issues That Determine Outcomes

1. Arbitration Clause Drafting

A significant proportion of jurisdictional disputes in Turkish-related arbitration trace back to poorly drafted arbitration clauses — ambiguous seat selection, conflicting dispute resolution provisions elsewhere in the same contract, or a failure to specify the applicable rules. A precise clause, agreed at signing, is far cheaper than litigating jurisdiction years later.

2. Interim Relief Before and During Proceedings

Where a counterparty’s assets or conduct create urgency, Turkish courts can grant precautionary measures in support of arbitration proceedings, including attachment orders, even where the seat of arbitration is outside Turkey. Acting quickly, with the right evidentiary basis, is often decisive.

3. Enforcement of the Award

Obtaining an award is only half the task. Enforcing a foreign award against Turkish assets requires a recognition and enforcement action before the competent Turkish civil court of first instance, with Turkish courts examining the award against the limited grounds set out in the New York Convention and Turkish public policy. Awards rendered in Turkey under the IAL benefit from a relatively streamlined annulment regime, with narrow statutory grounds for challenge.

Why Early Strategic Advice Matters

Many of the disputes we see at Tekin & Counsel could have been resolved more efficiently — or avoided altogether — with earlier strategic input, whether at the contract drafting stage or immediately after a dispute first emerges. A coordinated approach that considers arbitration strategy, interim relief and ultimate enforceability from day one tends to produce materially better outcomes than a reactive, stage-by-stage response.

If you are facing a potential dispute with a Turkish counterparty, or are reviewing an arbitration clause in a contract governed by Turkish or English law, our team advises on strategy from the outset through to award enforcement, drawing on both Turkish law qualification and Solicitor of England and Wales admission.

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Tags:arbitration lawyer Turkeyarbitration lawyer Turkey Turkish arbitration law ICC arbitration Turkey LCIA arbitration Turkey ISTAC arbitration cross-border dispute resolution Turkey enforcement of arbitral awards Turkeycross-border dispute resolution TurkeyICC arbitration Turkeyinternational arbitration in TurkeyTurkish arbitration law

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