A new Prime Ministry Circular (herein shall be referred to as the “Circular”) has been published on the Official Gazette on 19 November 2016 recommending for Turkish governmental institutions and organisations to use Istanbul Arbitration Centre (herein shall be referred to as “ISTAC”) in their contracts.
As per the Circular, Turkish public institutions and organisations are encouraged to consider arbitration under the ISTAC Arbitration and Mediation Rules which have been drafted by taking into consideration all the modern and frequently used international arbitration and mediation rules and as a possible dispute resolution mechanism in their domestic and cross border transactions.
It should be noted that the Prime Minister’s recommendation is not binding however it is expected for the public bodies to comply and use ISTAC for arbitral matters. Hence we are in the opinion that non-governmental bodies and private organisations will be using ISTAC more in their contracts as well, as opposed to domestic litigation.
ISTAC is an independent arbitration institution and is competent to hear disputes in both foreign and domestic nature providing investors, businesses and companies especially from the Gulf, Middle East, Near East and North Africa a cost and time effective way to settle their disputes in an impartial, flexible and confidential manner in international standards.
To view ISTAC’s website please click here.
https://istac.org.tr/
