International Arbitration in Turkey: Why Istanbul Matters for Global Business

by Businessfig
Businessfig

A Conversation with Dr. Arzu Ongur on International Arbitration, Cross-Border Disputes, Foreign Investment and Türkiye’s Growing Business Role

International business increasingly operates across borders. Companies establish partnerships in foreign markets, invest in overseas projects and enter into commercial agreements involving multiple jurisdictions.

While these relationships create significant opportunities, they can also produce complex legal disputes. A disagreement between international business partners may involve different legal systems, contractual frameworks, currencies, regulatory environments and enforcement considerations.

For companies operating in or with Türkiye, this makes the choice of an appropriate dispute resolution mechanism particularly important.

Against this background, international arbitration in Turkey is attracting increasing interest from foreign investors, multinational companies and businesses involved in cross-border commercial transactions.

Türkiye’s geographical position provides an important foundation for this development. Located between Europe, Asia and the Middle East, and connected to the Caucasus and Central Asian markets, Türkiye occupies a strategic position within international trade and investment.

Istanbul is at the centre of this commercial environment. The city is not only a major business and financial hub but also an increasingly relevant location when companies consider international dispute resolution.

In this interview, Dr. Arzu Ongur, Founder and Managing Partner of ONGUR & PARTNERS International Law Office, discusses the role of international arbitration in Türkiye, Istanbul’s potential as a regional arbitration centre and the legal considerations businesses should understand when entering cross-border transactions.

Dr. Ongur, could you begin by telling us about your professional and academic background?

My professional journey has been shaped, from its earliest stages, by international law, cross-border commercial relations, foreign investment and international dispute resolution.

I have always viewed law as more than a collection of rules. It provides an institutional framework through which investments, commercial relationships and interactions between states, corporations and private parties can be structured.

This understanding has influenced both my academic development and my professional approach to international legal matters.

I have never considered academic scholarship and legal practice to be separate disciplines. For me, they complement one another. Academic work provides a deeper understanding of legal principles, while practical experience demonstrates how those principles operate within real commercial relationships.

Following my graduation from Ankara University Faculty of Law, I pursued postgraduate studies in Italy, including at the University of Bologna, and undertook further studies in European Union law at the Collegio Europeo di Parma. I subsequently completed my Ph.D. at Ankara University, with a particular academic focus on competition law.

My interest in international dispute resolution also led me to undertake specialised training in alternative dispute resolution, international arbitration and arbitral decision-making in the United States and the United Kingdom.

These experiences reinforced an important principle in my approach to arbitration: lawyers should be able to analyse a dispute from different perspectives.

It is essential to understand the client’s position and develop a strong legal strategy. At the same time, counsel should consider how an arbitral tribunal may assess the evidence, contractual provisions, procedural arguments and commercial circumstances presented before it.

Why Arbitration Strategy Matters to International Businesses

International arbitration is sometimes viewed simply as an alternative to court litigation. In practice, it can involve a highly structured legal and strategic process.

Substantive legal arguments remain fundamental, but they represent only one component of an arbitration case.

Procedural strategy, evidence management, expert opinions, financial documentation and the presentation of complex commercial information can all influence how a tribunal approaches a dispute.

This becomes particularly important in cross-border commercial disputes, where several contracts, parties and legal systems may be involved.

An international arbitration lawyer must therefore be able to identify the central issues and transform a complicated commercial conflict into a clear legal and factual case.

For businesses, this strategic approach should begin before a dispute occurs.

When negotiating an international agreement, companies should carefully review the arbitration clause and consider matters such as the seat of arbitration, applicable law, procedural rules, language and institutional framework.

These provisions may appear technical when a contract is signed, but they can become commercially significant if the relationship later breaks down.

International Experience and Turkey–Italy Commercial Relations

Italy has also occupied an important place in my academic and professional life.

My education there, together with the professional relationships I have developed over the years, has allowed me to gain a broader understanding of different legal systems and the commercial cultures in which international investments take place.

Today, Turkey–Italy commercial relations, international investments and the legal structuring of cross-border transactions remain important aspects of my professional work.

International business requires an understanding of more than domestic legislation.

Legal professionals advising international companies must also appreciate differences in commercial practices, negotiation approaches and legal expectations.

International arbitration and alternative dispute resolution constitute a substantial part of my practice. My institutional involvement in the field, including my work within the Turkish Bar Association and its arbitration framework, complements the international dispute resolution work undertaken in private practice.

Building a Law Firm for Cross-Border Business

When establishing ONGUR & PARTNERS ankara law firm, my objective was to develop a legal practice firmly grounded in Turkish law while also being capable of working across jurisdictions and international commercial environments.

For an istanbul law firm advising international businesses, knowledge of Turkish law is essential, but it is only the foundation.

International clients may require advice concerning foreign investment, corporate structures, commercial contracts, regulatory requirements and dispute resolution.

These areas frequently overlap.

A foreign investment, for example, may involve a Turkish company, an overseas shareholder, international financing and contracts governed by different legal systems.

If a dispute develops, the legal team must understand how these different elements interact.

This is why international legal practice requires both domestic legal expertise and an understanding of the wider commercial environment.

Why Istanbul Is Important for International Arbitration

Istanbul’s geographical position is one of the factors contributing to its relevance in discussions about international arbitration in Turkey.

The city connects important commercial markets in Europe, Asia and the Middle East and has long served as a centre for international trade, finance and investment.

For international companies, Istanbul’s commercial connectivity can make it an interesting location when considering arbitration in Istanbul.

However, the choice of an arbitration seat should never be based solely on geography.

Businesses should also evaluate the applicable legal framework, procedural rules, enforceability of arbitral awards, institutional options, arbitrator expertise and the practical characteristics of the dispute.

The right arbitration structure should ultimately reflect the needs of the transaction and the risks faced by the parties.

Institutional Arbitration and Business Risk Management

Institutional arbitration can provide businesses with an established procedural framework and administrative support throughout the arbitration process.

This can be particularly useful in disputes involving multiple parties, substantial documentation or technically complex commercial issues.

Nevertheless, selecting an arbitration institution is only one part of effective dispute planning.

The wording of the arbitration agreement, appointment of arbitrators, procedural strategy, evidence management and presentation of the case can all have a significant impact on the proceedings.

For international companies, arbitration should therefore be considered as part of broader business risk management.

An arbitration clause should not simply be inserted into a contract as standard language. Its terms should be reviewed in light of the transaction, the parties involved and the jurisdictions connected to the business relationship.

What Businesses Should Expect from Modern Arbitration Lawyers

The nature of international commercial disputes is changing.

Today’s arbitration proceedings can involve sophisticated investment structures, financial arrangements, technical evidence, digital records and large quantities of commercial documentation.

As a result, modern international arbitration lawyers need capabilities extending beyond traditional legal research.

They must understand international commerce, investment structures, financial documentation, technology and the commercial objectives of their clients.

Communication is also critical.

An arbitration lawyer may need to explain complicated legal and commercial matters to executives, investors, arbitrators, experts and other participants in the proceedings.

The ability to organise complex information and present it clearly can significantly influence how a case is understood.

From my perspective, effective international arbitration practice requires rigorous legal analysis, strategic thinking and commercial awareness.

The strongest legal strategy is one that supports the client’s wider commercial objectives while addressing the specific legal issues of the dispute.

Foreign Investment and Cross-Border Disputes in Türkiye

Türkiye’s expanding role in international trade and foreign investment is creating new opportunities for businesses while also increasing the importance of sophisticated dispute resolution planning.

Foreign investors may become involved in disputes concerning commercial agreements, construction projects, financing arrangements, corporate relationships, investment structures or regulatory matters.

Understanding the available dispute resolution mechanisms in Turkey is therefore an important component of international business planning.

The issue should ideally be addressed before a transaction is completed.

During contract negotiations, businesses have an opportunity to identify potential areas of conflict and establish appropriate mechanisms for resolving disputes.

This is especially relevant when a transaction involves multiple jurisdictions, foreign shareholders, international financing or assets located in different countries.

A carefully structured dispute resolution provision can provide greater clarity if the commercial relationship later becomes contentious.

Türkiye’s Potential as a Regional Arbitration Centre

Türkiye’s strategic location and growing participation in international commerce create significant potential for the continued development of international arbitration in Turkey.

Istanbul is particularly important because of its commercial connections with Europe, Asia and the Middle East.

As foreign companies continue to invest in Türkiye and Turkish businesses expand their international operations, demand for lawyers with experience in international transactions and cross-border disputes is likely to continue increasing.

The development of arbitration in Türkiye should therefore be considered within the wider context of international business.

A predictable and effective dispute resolution environment can contribute to greater confidence among companies entering cross-border commercial relationships.

For international businesses, the availability of experienced legal professionals and appropriate arbitration mechanisms can form an important part of evaluating legal risk before entering a market.

The Future of Istanbul Arbitration

The future of Istanbul arbitration will depend on the continued development of legal expertise, institutional capacity, international confidence and Türkiye’s broader economic relationships.

As companies increasingly operate across borders, they need dispute resolution mechanisms capable of handling complex international transactions.

Istanbul has several characteristics that could support a stronger regional role in this area, including its geographical location, commercial infrastructure and connections with major economic markets.

For foreign investors and companies doing business in Türkiye, understanding arbitration should therefore be part of broader commercial planning rather than an issue considered only after a dispute has emerged.

The development of international arbitration in Turkey is closely connected to Türkiye’s expanding role in global trade and foreign investment.

As international business relationships continue to grow, Istanbul has the opportunity to strengthen its position as a regional centre for dispute resolution and become increasingly relevant to companies seeking structured solutions for complex cross-border commercial disputes.

What This Means for International Businesses

For companies considering investment or commercial activity in Türkiye, dispute resolution is ultimately a business issue as much as a legal one.

The way an arbitration clause is drafted, the choice of seat, the applicable rules and the selection of legal counsel can all influence the management of future disputes.

International businesses that address these questions at the beginning of a transaction can be better positioned to manage legal uncertainty later.

Türkiye’s continued integration into international commerce makes this increasingly relevant.

As Istanbul develops its role as a bridge between major economic regions, international arbitration in Turkey is likely to remain an important consideration for investors and companies engaged in cross-border business.

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