Recent Commercial Arbitration Trends In Turkey

What factors often influence parties in their choice of arbitration over litigation? Could you outline some of the key benefits of the arbitration process for those involved?

Çetinkaya: In Turkey and for Turkish companies choice of arbitration over litigation mainly depends on the sector and the parties to a contract. Construction, for instance, is the sector where arbitration is not an alternative but rather the principal dispute resolution method. Turkish contractors use arbitration as a method to solve their disputes in Turkey and abroad, chiefly because construction is a complex and multi-layered sector within which a large number of goods and service providers have competing interests. It is difficult to avoid conflict, if not disputes, between those layers of the supply chain which might potentially affect the entire process and timelines, regardless of how tiny the problem is. This is perhaps why, unlike other sectors in Turkey, is the necessity for efficient