Originally from Arbitration Law of Turkey: Practice and Procedure

4.1 TURKISH INTERNATIONAL ARBITRATION CODE (NUMBERED 4686, TIAC)

The Turkish International Arbitration Code (TIAC) is the primary set of rules governing international arbitration proceedings in Turkey. The Turkish International Arbitration Code was based for the most part on UNCITRAL Model Law with certain modifications. UNCITRAL Model Law was chosen as the basis for the new law specifically to enable international arbitration practitioners to conduct arbitration in Turkey under contemporary and well known international standards1.

Before TIAC came into being, both domestic and international arbitrations were governed by the Turkish Civil Procedural Code of 1927. With respect to international arbitration it was recognised that the lack of a codification of the rules related to foreign investor arbitrations was hindering Turkey from taking its rightful place in the global business market2 . Contract drafters had a difficult task when deciding on the choice of applicable law and jurisdiction of the courts. Foreign investors were reluctant to specify Turkish Law to be applicable to any dispute as they were unfamiliar with the system of law but at the time awards made in foreign countries were still subject to extensive procedures for enforcement in Turkey. In practice, if an award could be considered at all, the case related to the foreign award was often reheard by the Turkish Courts on its merits under the contemporary Turkish Law. This was an expensive, long-winded and uncertain procedure that discouraged many investors from the Turkish market.