International Arbitration in Turkey: What Global Businesses Should Know About Istanbul

Dr. Arzu Ongur on International Arbitration, Cross-Border Business Disputes, Foreign Investment and Türkiye’s Growing Role in Global Commerce

International business has become increasingly interconnected. A company may have its headquarters in one country, investors in another, suppliers across several markets and contracts governed by different legal systems.

This global structure creates opportunities, but it can also make commercial disputes considerably more complicated.

When a disagreement develops between companies operating in different countries, traditional court litigation is not always the most practical solution. Businesses may instead turn to arbitration as a structured mechanism for resolving international commercial disputes.

This is one reason why international arbitration in Turkey is attracting growing attention from foreign investors, multinational companies and businesses involved in cross-border transactions.

Türkiye’s location gives it a distinctive position in international commerce. The country connects Europe with Asia and the Middle East while maintaining extensive commercial relationships with the Caucasus and Central Asia.

Istanbul plays a central role in this economic network. The city is an important centre for trade, finance, investment and international business and has the potential to become increasingly significant in regional dispute resolution.

To better understand this development, we spoke with Dr. Arzu Ongur, Founder and Managing Partner of ONGUR & PARTNERS International Law Office. Dr. Ongur discusses her international legal career, the strategic importance of arbitration, Istanbul’s position in international dispute resolution and the changing expectations placed on lawyers handling cross-border business disputes.

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 system of rules. It is also an institutional framework within which investments, commercial relationships and interactions between states, corporations and private parties are structured.

This perspective has influenced both my academic work and my professional practice.

I have never regarded academic scholarship and legal practice as separate pursuits. I see them as complementary dimensions of the same profession. Academic research can provide a deeper understanding of legal systems, while practical experience shows how those systems operate in real commercial situations.

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.

A lawyer representing a client in an international dispute should be able to examine the matter not only from the perspective of counsel, but also from the perspective of the arbitral tribunal.

Understanding how arbitrators may evaluate evidence, contractual provisions, procedural submissions and competing legal arguments is an important part of preparing an effective case.

Why International Arbitration Matters to Global Businesses

International arbitration is not simply an alternative to court proceedings.

For businesses operating across borders, it can provide a structured framework for resolving disputes involving different legal systems and commercial environments.

Substantive legal arguments are essential, but they are only part of the process.

Procedural strategy, evidence management, expert analysis, technical documentation and the presentation of complex commercial information can all affect how a tribunal understands a dispute.

Cross-border disputes can involve multiple contracts, companies from different countries, international financing arrangements and substantial amounts of financial or technical evidence.

For an international arbitration lawyer, one of the key challenges is to bring these elements together and present them as a coherent legal and factual case.

The lawyer must understand not only what the law says, but also how the legal issues relate to the client’s commercial objectives.

Arbitration Planning Should Begin Before a Dispute

Businesses often focus on dispute resolution only after a commercial relationship has deteriorated.

In reality, arbitration planning can begin when an international contract is first negotiated.

The arbitration clause can determine important aspects of a future dispute, including the seat of arbitration, applicable procedural rules, governing law and institutional framework.

These provisions may appear technical during contract negotiations, but they can become extremely important if the parties later find themselves in a serious commercial disagreement.

For companies involved in international investment or cross-border business, carefully structured dispute resolution provisions can therefore form an important part of broader legal risk management.

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 given me an opportunity to understand different legal systems as well as 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 legal practice requires more than an understanding of legislation.

Lawyers working with international businesses must also recognise differences in commercial expectations, negotiation practices and legal traditions.

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.

Developing an Internationally Oriented Law Firm

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

For an istanbul law firm working with international clients, knowledge of Turkish law is essential, but international legal practice requires a wider perspective.

A foreign investor may require advice involving corporate structures, investment arrangements, commercial contracts, regulatory obligations and dispute resolution.

These areas can be closely connected.

An international investment, for example, may involve a Turkish company, foreign shareholders, financing from another jurisdiction and contracts governed by different legal systems.

If a dispute develops, legal counsel must understand how all of these elements interact.

This is why international legal practice requires both strong domestic legal knowledge and an understanding of the international business environment.

Istanbul’s Strategic Position in International Arbitration

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

The city has historically connected commercial routes between Europe and Asia and remains a major centre for international trade, finance and investment.

Its links with European, Asian and Middle Eastern markets make Istanbul particularly relevant to companies engaged in cross-border business.

For companies considering arbitration in Istanbul, however, location alone should not determine the choice of an arbitration seat.

Businesses should also consider the applicable legal framework, procedural rules, enforceability of arbitral awards, institutional options and the experience of potential arbitrators.

The most appropriate arbitration structure ultimately depends on the transaction, the parties and the risks associated with the commercial relationship.

Institutional Arbitration and Commercial Risk

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

This structure can be particularly useful in disputes involving multiple parties, extensive evidence or technically complicated commercial issues.

However, choosing an arbitration institution is only one part of an effective dispute resolution strategy.

The arbitration agreement itself, appointment of arbitrators, procedural planning, evidence management and presentation of the case can all influence the arbitration process.

For international companies, arbitration should therefore be viewed as part of wider commercial risk management.

A dispute resolution clause should not simply be copied into an agreement as standard language. It should be considered in the context of the transaction, the jurisdictions involved and the commercial objectives of the parties.

What Does a Modern Arbitration Lawyer Need?

The international arbitration profession is evolving alongside global business.

Modern disputes can involve complex investment structures, financial arrangements, technical evidence, digital records and substantial volumes of commercial documentation.

The next generation of international arbitration lawyers will therefore need capabilities that extend beyond traditional legal research.

They will need to understand international commerce, foreign investment, finance, technology and the commercial priorities of their clients.

Communication skills are equally important.

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

The ability to organise complicated information and communicate it clearly can have a significant impact on the effectiveness of a legal strategy.

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

A legal strategy should address the dispute while also supporting the client’s broader business objectives.

Foreign Investment and Cross-Border Disputes in Türkiye

Türkiye’s expanding role in international trade and foreign investment is creating new opportunities for global businesses.

At the same time, greater international activity can produce more sophisticated legal disputes.

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

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

Ideally, businesses should consider these issues before completing a transaction.

During contract negotiations, companies have an opportunity to identify potential areas of conflict and determine how future disputes should be handled.

This becomes particularly important when a transaction involves foreign shareholders, international financing, multiple jurisdictions or assets located in different countries.

Early legal planning can provide greater clarity and help businesses understand the potential consequences of a dispute before it occurs.

Can Türkiye Become a Regional Arbitration Hub?

Türkiye’s geographical position and growing participation in international commerce provide significant opportunities for the development of international arbitration in Turkey.

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

As international companies continue to invest in Türkiye and Turkish businesses expand into foreign markets, demand for legal professionals with experience in cross-border transactions and dispute resolution is likely to increase.

The development of arbitration in Türkiye should therefore be considered within the wider context of the country’s integration into global commerce.

International arbitration is not simply a specialised legal service. An effective dispute resolution environment can also contribute to greater confidence among businesses entering international commercial relationships.

For investors, the availability of experienced legal counsel and appropriate dispute resolution mechanisms can be an important consideration when evaluating the risks of entering a new market.

The Future of Istanbul Arbitration

The future of Istanbul arbitration will depend on several factors, including legal expertise, institutional development, international confidence and Türkiye’s continued participation in global trade and investment.

As cross-border transactions become increasingly sophisticated, businesses will require dispute resolution mechanisms capable of handling complex commercial relationships.

Istanbul has several characteristics that could support a stronger regional role in this field.

Its geographical location, commercial infrastructure and connections with major economic regions give the city an opportunity to become increasingly relevant to international dispute resolution.

For international investors and companies operating in Türkiye, understanding arbitration and other dispute resolution mechanisms should therefore be part of broader commercial planning.

The development of international arbitration in Turkey is ultimately connected to Türkiye’s expanding role in international business.

As foreign investment and cross-border commerce continue to grow, Istanbul has the potential to strengthen its position as a regional dispute resolution centre and become increasingly important to companies seeking structured solutions for complex international commercial disputes.

What International Companies Should Consider

For businesses considering investment or commercial activity in Türkiye, dispute resolution should be treated as a business consideration as well as a legal one.

The wording of an arbitration clause, choice of seat, applicable rules and selection of legal counsel can all affect how a future dispute is managed.

Addressing these issues at the beginning of a transaction can give companies a clearer framework for dealing with potential conflicts later.

Türkiye’s increasing integration into international commerce makes this particularly relevant.

As Istanbul continues to connect major markets across Europe, Asia and the Middle East, international arbitration in Turkey is likely to remain an important consideration for companies involved in cross-border business.

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