In the previous article, we briefly discussed the concept of domestic and international commercial arbitration, along with the international conventions governing the arbitration process and the recognition and enforcement of arbitral awards. In this article, we introduce the most prominent international arbitration institutions in accessible terms, free from complex academic legal jargon.
1. Permanent Court of Arbitration (PCA)
The PCA is headquartered in The Hague, Netherlands. It primarily handles disputes involving contractual matters between states, between states and corporations, or between international organizations and states or private entities. As with any arbitration, submission of a dispute to the PCA requires a valid arbitration agreement between the parties. Two private companies may refer their dispute to the PCA if their agreement contains an arbitration clause and the case involves a “significant international element.” Otherwise, the PCA may lack jurisdiction. It is important to distinguish the PCA from the International Court of Justice (ICJ)—also located in The Hague—which is a principal organ of the United Nations and does not have jurisdiction over commercial arbitration matters.
2. International Chamber of Commerce (ICC)
Headquartered in Paris, the ICC is one of the most prestigious institutions for international commercial arbitration. It specializes in appointing arbitrators and providing administrative and procedural support for arbitration in English and French.
3. Singapore International Arbitration Centre (SIAC)
One of the most active and reputable arbitration institutions in Asia, SIAC is based in Singapore and is well known for resolving even low-value disputes within a few months. Competitive fees, procedural transparency, neutrality, and strong governmental support are among its key strengths.
4. Netherlands Arbitration Institute (NAI)
Founded in 1949 in Rotterdam—the largest commercial port in Europe—the NAI conducts arbitration in English, Dutch, and occasionally in French or German. It resolves international commercial disputes in accordance with global standards and conventions.
Which Arbitration Center Is the Best?
The city of The Hague has long been known as the legal capital of the world due to the presence of major international institutions such as the ICJ, the PCA, and the International Criminal Court (ICC). The Dutch legal system is renowned for its independence and high professional standards, lending strong credibility to arbitral awards issued by Dutch institutions. Hearings are often conducted in English, and the Netherlands’ ratification of all major international trade conventions ensures transparent rules for arbitration and the enforcement of awards.
In addition to institutional arbitration, since 2019, the Netherlands Commercial Court (NCC)—a specialized division within the Dutch judiciary—has jurisdiction to hear international commercial disputes in English, even when both parties are non-Dutch. Although not an arbitration forum, its mention here highlights the Netherlands’ judicial flexibility and its accommodating legal environment for cross-border commerce.
The best arbitration center depends on the specifics of each case. While some institutions require physical presence at the arbitration seat, in the Netherlands, hearings can be held via secure video conferencing platforms approved by both parties and the arbitration center. This allows foreign parties to benefit from European arbitration without the hassle of obtaining visas, traveling to Europe, or hiring translators.
Mr. Khademi’s Law Office, with more than two decades of experience in Iran, and his Dutch-based firm AdvoLinK, work in collaboration with Dutch and international legal experts to provide high-quality arbitration services for domestic and international commercial disputes. Mr. Khademi holds a Class A Iranian law license and is a member of the International Bar Association (IBA). Fluent in English and well-versed in international trade regulations, he is a trusted advocate for his clients. Whether representing clients in arbitration hearings or serving as a party-appointed arbitrator, Mr. Khademi and his legal team are equipped to secure your legal rights effectively.