Originally from Arbitration Law and Practice in the Middle East - Second Edition

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I. INTRODUCTION: ARBITRATION IN TURKEY–HISTORY AND INFRASTRUCTURE

A. History and Current Legislation on Arbitration

1. Historical evolution of law relating to arbitration

Arbitration has a long history in Turkish society.  The initial law dealing with arbitration dates back to 1856 of the times of the Ottoman Empire. Following the tradition established in the past century, in 1927, the Code of Civil Procedure, Law No. 1086 of 18 June 1927, as amended, published in Official Gazette Nos. 622-624 of 2-4 June 1927, (“CCP”) containing provisions in respect of arbitration was enacted. Since that date, several laws supporting arbitration have been introduced, though the legislative support has not yet been sufficed for the flourishment of arbitration culture in Turkey.  Perhaps the most important achievement made to date is the enactment of the International Arbitration Law No. 4686 of 21 June 2001, published in Official Gazette No. 24453 of 5 July 2001. (“IAL”).  The IAL is mainly based on the UNCITRAL Model Law on Arbitration 1985 (“UNCITRAL Model Law”).

2. Current law

Voluntary arbitration is mainly regulated by the CCP and the IAL.

a) Domestic arbitration law

The CCP is applicable to domestic arbitration.

b) International arbitration law

The IAL is applicable to arbitrations containing foreign element. In an arbitration whose judicial seat (place of arbitration) is set out as a place in Turkey, the criterion between national and international arbitration is set out as whether or not there exists a foreign element.  When there is no foreign element the CCP shall be applicable, whereas the existence of a foreign element shall invite the IAL to apply to such arbitration.