Businesses’ experience of arbitration in Germany set to be enhanced

Case data highlights the relevance of arbitration as a mechanism for dispute resolution in Germany in sectors such as energy, infrastructure, manufacturing and technology particularly – while recent developments also highlight the important role arbitration in Germany has to play in relation to disputes arising from sanctions or in the context of sport or Nazi-looted art.

An insight into current practices

In Germany, the principal arbitral institution is the German Arbitration Institute (DIS). In 2024, there were 158 new cases lodged before the DIS. While this was down on the 191 cases registered the year before, the total value in dispute rose sharply to around €4.05 billion from €2.86bn the year before. In 2024, almost three-quarters of DIS proceedings took place in one of Munich, Frankfurt, Hamburg, Düsseldorf, or Berlin. Around a third of proceedings took place in English.

• Read more: international arbitration developments and trends for 2025-26

German companies are regularly involved in ICC arbitrations too. ICC data highlighted Germany as being within the top 10 countries of origin for new cases in 2024. In total that year, 85 new ICC cases arose from Germany, and 20 ICC tribunals were convened in Germany – London, Paris, Geneva, New York and Singapore are other common seats for ICC arbitrations involving German parties.

The popularity of arbitration for German parties in resolving disputes regarding energy and infrastructure projects, as well as in the automotive and manufacturing industries, is clear from DIS and ICC data, which also highlights its use by companies involved in Germany’s technology, pharmaceutical and healthcare, engineering, and real estate sectors too.

German counsel and tribunals frequently run ad hoc arbitrations or those under UNCITRAL Rules administered by DIS or otherwise too, especially for specific industry contracts, while there are also specialist bodies and rules in place for arbitration in certain contexts, such as for maritime or sports disputes – the latter of which are governed by new DIS Sport Arbitration Rules, which took effect on 1 January 2025 and apply to arbitral proceedings submitted to the German Court of Arbitration for Sport after that date.

DIS said the new sports arbitration rules align with the arbitration rules it operates for other kinds of disputes and also “implement the requirements for arbitration proceedings arising from the reform of the WADA Code” in respect of anti-doping.

Since 1 December 2025, a new arbitration regime specific to Nazi-looted property has also been in operation driven by the coalition government’s commitment to “improve the return of cultural property seized as a result of Nazi persecution” to the legal successors of those from whom the property was seized.

In recent times, as we highlighted last year, arbitral tribunals – and the courts – in Germany have played an important role in helping business unpick commercial relationships impacted by the imposition of sanctions on Russia. In 2025, there were further developments in this regard as two higher regional courts in Stuttgart and Frankfurt found that recognition and enforcement of an arbitral award would violate EU sanctions law and, consequently, German public policy.

Reform back on the agenda

It is now nearly 30 years since German arbitration law was last substantively updated. The reform is urgently needed to reinforce Germany’s position as one of the major places for arbitration.  

The previous German government moved to reform arbitration law in 2024, but snap elections brought that initiative to a halt. In January 2026, however, the new administration published a new draft bill, which has re-surfaced many of the features of the 2024 bill, but also made quite some changes based on criticism of the first draft. Overall, these reforms reflect the German government’s goal of bringing German arbitration law more into line with international standards.

Digitalisation is at the heart of the plans for reform, with measures to enable hearings via video conferencing and allow arbitral awards to be rendered electronically, built into the new draft bill.

Under other proposals, arbitral awards and dissenting opinions will be published by default, unless parties decide otherwise, while parties will also be able to bring English documents to arbitration proceedings even if the language of arbitration is German.  

These reforms not only reflect the nature of international business and modern arbitral practice globally; they would bring German arbitration law more into line with recent reforms relevant to court proceedings in Germany.

The Commercial Courts Act, which entered into force on 1 April 2025, not only streamlines procedures but enables English‑language proceedings to take place before, and judgments to be handed down by, specialised higher regional court divisions. These language changes have already been given effect in courts in Düsseldorf, Cologne, Essen and Bielefeld.

Once the modernisation of Germany’s arbitration law is complete, it will give businesses greater choice over how and where to resolve their disputes, while further strengthening Germany’s position as a competitive and modern arbitration venue.