Introduction: Arbitration is the Most Powerful Tool in International Trade

Disputes between foreign investors operating in Turkey and Turkish companies doing business abroad are often resolved through arbitration . Foreign arbitration awards, issued through institutions such as the ICC, LCIA, SIAC, HKIAC, GAFTA, and FIDIC, or through ad hoc arbitrations, are binding in international commercial relations. However, enforcement is required in Turkey for these awards to be executed .

Turkey has been a party to the New York Convention since 1992 and applies a liberal regime in the recognition and enforcement of foreign arbitration awards. By 2025, the implementation has been further simplified, increasing the speed of resolving commercial disputes.

---

1. Which Arbitration Awards are Enforceable in Türkiye?

According to the New York Convention:

• Arbitration awards issued in foreign countries

• International arbitration awards

• Ad hoc or institutional arbitration decisions

• Commercial disputes

• Mediation-arbitration (arb-med) decisions

It can be enforced in Türkiye.

Exception: Decisions in matters deemed "unarbitrable," such as family law and consumer disputes, are not enforceable.

---

2. Documents Required for Enforcement of Arbitration Awards in Türkiye

Documents to be submitted with the application:

• Original arbitration award

• Original or certified copy of the arbitration agreement

• Sworn translation + notarization

• Apostille or consular certification

• Notifications regarding arbitration proceedings (if required)

• Authorization certificate

Missing documents can prolong the legal process or be grounds for rejection.

---

3. Grounds for Refusal According to the New York Convention

The court does not examine the arbitration award on its merits; it only considers the limited grounds for refusal.

A. If one of the parties is not eligible to enter into an arbitration agreement

B. If the arbitration agreement is invalid

C. If the right to defense has been violated

If invitations have not been sent or the party has not been notified of the hearing.

D. The arbitrator's decision exceeding the arbitration authority

The decision may have gone beyond the scope of the arbitration agreement.

E. Irregularities in the formation of the arbitration board

If the arbitration rules or the agreement between the parties have been violated.

F. If the decision is not yet binding or has been revoked

---

4. Public Policy Exception

This is the most controversial point of the New York Convention. Turkey interprets public order narrowly .

A violation of public order is only considered in the following cases:

• The interest rate clearly violates Turkish law

• Exorbitant compensation in the form of penalties

• Contract provisions that are contrary to public order

• Issues unsuitable for arbitration

• Suspicion of corruption and fraud

In the 2025 implementation, the public order exception is applied even more restrictively.

---

5. How long does an enforcement case for an arbitration award take?

Average for 2025:

• In the Istanbul BAM department: 6–10 months

• Ankara/Izmir: 5–9 months

• If there are missing documents or notification issues → 10-14 months

Because arbitration awards are commercial in nature, courts process them more quickly.

---

6. What happens when an enforcement decision is made in Türkiye?

When the enforcement decision becomes final, the arbitration award:

• This would be equivalent to a Turkish court ruling

• It is directly put into enforcement proceedings by the enforcement office

• The company's bank accounts may be frozen

• Assets can be seized

• You can visit the branches and representative offices of foreign companies in Türkiye.

Türkiye's recognition and enforcement regime is quite reassuring for foreign investors.

---

7. Why are arbitration awards advantageous in commercial disputes?

• Impartial and expert referees

• Security

• Faster process

• International recognition

• The New York Convention is enforceable in 170+ countries

• Freedom of contract

Therefore, large projects, energy investments, and franchise-distributorship relationships often include arbitration clauses.

---

8. The Cases Where Arbitration Awards Are Most Frequently Rejected in Türkiye

According to 2024–2025 data, the most common reasons for rejection are:

• The decision is not yet binding

• Exceeding the authority of the referee's decision

• Invalidity of the arbitration agreement

• Violation of the right to defense

• Public order justification

However, rejection decisions are not final → a new application can be submitted after the deficiencies are rectified.

---

9. Jurisdiction of Turkish Courts in Contracts Containing Arbitration Clauses

If the contract includes an arbitration clause:

• Turkish courts do not conduct substantive investigations

• It sends the parties to arbitration

• However, precautionary attachment and evidence gathering can be carried out.

This increases the effectiveness of the arbitration process.

---

10. The Most Common Mistakes and Recommendations for Companies

A. The technical preparation of the arbitration agreement is being neglected

Authority, language, location, and number of referees must be correctly determined.

B. The documents are being prepared incompletely

Deficiencies in apostille and translation delay enforcement.

C. Evidence of service of process is not being collected

The claim that a party's right to defense has been violated is the easiest ground for refusal.

D. The merits of the arbitration decision are being discussed

Turkish courts do not interfere in the merits of the case → a flawed defense strategy.

E. The arbitration award is considered invalid in Türkiye

However, the enforcement rate is quite high due to the New York Convention.

---

Conclusion: The Enforcement of Foreign Arbitration Awards in Türkiye is a Guarantee for the Business World

Türkiye as of 2025:

• We are broadly applying the New York Convention,

• We respect arbitration decisions,

• Interpreting public order narrowly,

• It enables companies to collect their receivables quickly.

With properly prepared documents and a sound legal strategy, the enforcement of foreign arbitration awards has a high success rate.