Arbitration is the fastest and most economical way to resolve disputes arising out of contractual commercial relations. In arbitration, disputes are resolved by expert arbitrators within a predetermined timeframe, usually between 3 months and 1 year. Unlike mediation, arbitration is a judicial procedure. Awards rendered in arbitration proceedings are final and binding.
Arbitration proceedings conducted by expert arbitrators do not face the problems of the expert mechanism and high court fees in court proceedings. Arbitral proceedings resolve disputes quickly, completely and accurately. Therefore, settlement rates are very high. Disputes are resolved without impairing relations between commercial actors bypassing corrosive effects of court proceedings.
Since the 1980s, various regulations adopted in Turkey have gradually paved the way for arbitration.
This process reached a mature stage in 2014 with the establishment of the Istanbul Arbitration Center (ISTAC) as a result of a great social consensus between the public and private sectors.