International arbitration: regional, sectoral and industry developments reinforce dispute resolution status

In the second edition of our annual guide on global developments and current trends, our legal experts observe notable changes across 16 key arbitration regions through a series of articles, and offer observations and predictions in specialist areas.

This edition also highlights sectoral and industry trends, reflecting our commitment to addressing client needs in areas such as sanctions-related disputes, M&A, and investor-state dispute settlement (ISDS).

We hope this edition provides valuable insights and guidance to the legal community navigating the shifting terrains of international arbitration. Thank you for reading, and we look forward to continuing to support your arbitration needs in the year ahead.

Geographic trends in international arbitration

UAE

The dissolution of the DIFC-LCIA Arbitration Centre and the subsequent treatment of legacy arbitration agreements have been key areas of legal debate in the United Arab Emirates (UAE), with recent rulings, including a reversal by the US Court of Appeals for the Fifth Circuit, affirming their enforceability.

Structural changes in UAE arbitral institutions, such as the establishment of the Abu Dhabi International Arbitration Centre (ADIAC) and the growth of the Dubai International Arbitration Centre (DIAC), have further strengthened the region's arbitration infrastructure. Notable court cases have addressed issues such as the enforceability of foreign interim measures, recovery of legal fees, and the validity of arbitration clauses despite non-payment of fees.

These developments, along with new arbitration rules and technological advancements, underscore the UAE's commitment to maintaining a robust and reliable arbitration environment.

Saudi Arabia

Regulatory changes, the growth of arbitration organisations and the Kingdom's hosting of the inaugural Riyadh International Disputes Week 2024 have proved pivotal in enhancing Saudi Arabia’s arbitration landscape with global stakeholders. The rise of Saudi ‘giga projects’ and legal reforms in line with Saudi Vision 2030 is attracting extensive foreign investment, further underlining the importance of a modern, responsive arbitration solution.

Notable initiatives include the new rules of the Saudi Centre for Commercial Arbitration (SCCA), the launch of the Saudi Arabia branch of the Chartered Institute of Arbitrators (CIArb), and the updated Investment Law, all contributing to Saudi Arabia's growing prominence in the field of arbitration.

Qatar

Over the past year the Qatar International Centre for Conciliation and Arbitration (QICCA) has seen a substantial increase in arbitration cases, particularly in relation to construction contracts, likely a consequence of the investments leading up to the FIFA World Cup 2022. New arbitration rules and digital services have been introduced to enhance efficiency and accessibility.

Pro-arbitration legal developments, including the recent Judicial Enforcement Law and the Qatar International Court and Dispute Resolution Centre's (QICDRC) modernised digital infrastructure, underscore Qatar's commitment to becoming a leading arbitration destination in line with Qatar National Vision 2030.

Egypt

Egypt is solidifying its role as a central hub for arbitration in the MENA region, led by the Cairo Regional Centre for International Commercial Arbitration (CRCICA) and its new, efficient rules. The Egyptian Centre for Arbitration and Settlement of Non-Banking Financial Disputes (ECAS) is also advancing, particularly in non-banking financial disputes. Efforts to boost investor confidence include a new Bilateral Investment Treaty (BIT) and strategic agreements, such as with Saudi Arabia.

Key industry events like the ICC's Egyptian Arbitration Day and the Sharm El Sheikh IX Conference highlight the growing arbitration community. Potential reforms to arbitration law and recent legal victories in significant cases demonstrate Egypt's commitment to international arbitration standards and investor protection.

West & Francophone Africa

Investment disputes are driving international arbitration developments across Africa, with key jurisdictions updating their laws and rules to align with international standards. OHADA has revised its arbitration regulations in Western and Central Africa, while Lusophone – Portuguese-speaking – Africa, including Angola, is seeing increased activity due to new bilateral investment treaties.

Nigeria reformed its arbitration framework in 2023 and signed a collaboration agreement with the Permanent Court of Arbitration. The Nigerian Supreme Court recently reaffirmed the finality of arbitral awards in the NNPC v Fung Tai Eng case, emphasizing limited judicial intervention in arbitration proceedings.

Southern Africa

Southern Africa is transforming its arbitration landscape with new regional initiatives and growing investment opportunities. The launch of Johannesburg Arbitration Week in April 2024 highlighted the Southern African Development Community (SADC) alliance's efforts to build a harmonised arbitration framework, aiming to attract foreign investment. The adaptation of the China-Africa Joint Arbitration Centre (CAJAC) rules for BRICS nations and the Protocol on Investment under the African Continental Free Trade Area (AfCFTA) further enhance the region's dispute resolution mechanisms.

South Africa's energy sector is seeing increased arbitration activity, supported by the Electricity Regulation Amendment Bill and a pro-arbitration stance by South African courts, which continue to uphold valid arbitration agreements and settlements.

England & Wales

The Arbitration Act 2025 has received Royal Assent and will come into force on a date to be announced by the Secretary of State. The new Act incorporates the Law Commission's recommendations and affirms London’s preeminent position as a preferred seat of arbitration. It is expected to maintain the UK's competitive edge and support economic growth in the UK legal sector which is second only globally to the US.

Recent legal developments in the English courts, such as affirming that states cannot rely on sovereign immunity to oppose ICSID awards and granting anti-suit injunctions to protect arbitration agreements, highlight the courts' robust support for arbitration and the procedural hurdles that may arise. The Law Society's data insights report highlights the enduring prominence of English law in international arbitration, while the London Court of International Arbitration (LCIA) reports emphasise cost-effectiveness and efficiency, along with a strong focus on integrating new equality, diversity, and inclusion guidelines across all stages of an arbitration

France

French arbitration law is set for significant reform in 2025, with businesses eagerly awaiting the outcomes from a government-appointed Commission.

Over the past year, key developments in French case law have provided important lessons for arbitration, affecting both the evidence admissible and the forums for dispute resolution. Notable rulings by the French Court of Cassation have clarified the necessity for parties to raise procedural irregularities during arbitration and have expanded the admissibility of illicit evidence under certain conditions. Additionally, a dispute between France's supreme courts over the jurisdiction of public entity disputes and a referral to the Court of Justice of the EU (CJEU) regarding sanctions compliance highlight the evolving complexities in French arbitration. These changes underscore the dynamic nature of arbitration in France and the need for businesses to stay informed and adaptable.

Germany

Germany is set to enhance its appeal as a hub for international arbitration with new laws and landmark rulings aimed at modernising and internationalising its arbitration system. The 2024 draft law introduces significant changes, including form-free arbitration agreements in the B2B sector and the electronic issuance of arbitral awards.

Recent court decisions, such as the Berlin Higher Regional Court's ruling on sanctions-related disputes, underscore the enforceability of arbitration agreements even under challenging circumstances. Additionally, the German Arbitration Institute (DIS) has introduced supplementary rules for third-party notices, bridging the gap between state court and arbitration proceedings

Singapore / SIAC

Singapore continues to solidify its position as a leading international dispute resolution hub, driven by significant developments at the Singapore International Arbitration Centre (SIAC) and the Singapore International Commercial Court (SICC). Additionally, Singapore is strengthening ties with the Middle East through strategic partnerships and initiatives.

Celebrating its 10-year anniversary, the SICC is expanding its influence, notably with the establishment of the Bahrain International Commercial Court (BICC).  Recent court rulings in Singapore highlight the judiciary's minimal intervention approach while safeguarding the integrity of the arbitration process, emphasising the importance of choosing the right arbitrator and maintaining a pro-arbitration stance. These advancements collectively enhance Singapore's reputation as a premier destination for international arbitration.

Hong Kong SAR

The 2024 HKIAC Administered Arbitration Rules, effective from June 2024, introduce enhanced powers and duties for arbitral tribunals and empower the HKIAC to take necessary measures to preserve the integrity of proceedings and allow for the exclusion of new legal representatives to avoid conflicts of interest.

Significant court rulings in Hong Kong SAR have reinforced the jurisdiction’s pro-arbitration stance, addressing issues such as insolvency and arbitration, interim order enforceability, tribunal jurisdiction, and challenges for apparent bias. Notable cases include the clarification of arbitration clauses in insolvency proceedings, the non-appealability of arbitral interim measures, and the importance of providing reasoned awards.

India

In 2024, India implemented substantial reforms to modernise its arbitration landscape, showcasing a strong commitment to enhancing its dispute resolution mechanisms. Key efforts to strengthen the arbitration ecosystem include the proposed Arbitration and Conciliation (Amendment) Bill 2024, which aims to align India's arbitration laws with international standards, the creation of the Arbitration Bar of India – a dedicated arbitration membership body, and the opening of a Permanent Court of Arbitration office in Delhi. Additionally, initiatives to boost bilateral trade and investments further support India's ambition to become a global hub for arbitration.

Japan

Recent amendments to Japan's Arbitration Act enable Japanese-seated arbitral tribunals to issue interim measures like anti-suit injunctions and asset preservation orders, with courts able to impose penalties for violations. Meanwhile, Japan's ratification of the Singapore Convention on Mediation, effective 1 April 2024, provides a framework for enforcing cross-border mediated settlement agreements, with enforcement handled by Tokyo and Osaka District Courts.

These developments, along with updated Japanese Commercial Arbitration Association’s (JCAA) Rules in 2021 and the Japanese government's proactive promotion of international arbitration, further underscore the country's commitment to becoming a key hub for dispute resolution.

South Korea

South Korea has introduced several key initiatives to enhance its international arbitration framework, aiming to solidify its position as a leading hub for alternative dispute resolution (ADR). These initiatives include the establishment of a dedicated international legal affairs department within the Ministry of Justice, the implementation of the KCAB International Mediation Rules, and significant court decisions clarifying arbitration practices.

The new department, divided into three specialised divisions, handles investor-state dispute settlement cases and international commercial arbitrations. The Supreme Court's rulings have further defined the distinctions between the "seat" and "place" of arbitration, ensuring clarity in arbitration agreements.

China

The China International Economic and Trade Arbitration Commission (CIETAC) introduced new arbitration rules effective 1 January 2024, which include provisions for tribunal jurisdiction, consolidation of proceedings, and third-party funding. Draft amendments to the PRC Arbitration Law propose significant updates, such as expanding the scope of foreign-related arbitration.

Additionally, China's arbitration network has expanded to 282 registered arbitral institutions, with more institutions establishing international divisions. Judicial review and legislative changes, including the revised Civil Procedure Law and the Foreign State Immunity Law, further support China's pro-arbitration stance.

Australia

Key rulings from the High Court and the Supreme Court of New South Wales have clarified the treatment of arbitration agreements in international contracts and the applicability of proportionate liability laws in arbitration proceedings. Additionally, the rise in investment arbitration cases and the launch of digital arbitration tools like ACICA Connect highlight Australia's commitment to efficient and effective dispute resolution.

These developments, spanning sectors such as energy, infrastructure and technology, underscore Australia's growing influence in the global arbitration landscape.

Specific arbitration trends

Sanctions

The complexity of procuring materials and equipment for global construction projects has increased due to wide-ranging sanctions, leading to disputes over cost increases and delays. Despite this, sanctions risk has not been a primary consideration in strategic decisions or construction contracts. This will need to change if construction contractors are to avoid heightened compliance risk, liability for increased costs, and complicated and expensive disputes. There is a need for robust due diligence and clear contractual provisions to manage sanctions-related risks. ‌

M&A

Following a year of relative inactivity, a significant rise in M&A is expected in 2025. This surge in dealmaking is likely to lead to an increase in M&A-related disputes. These disputes will be driven by three main trends: environmental, social and governance (ESG) issues; the growth of artificial intelligence (AI); and misaligned valuations.

Deal-related disputes are commonly referred to international arbitration and frequently arise from issues such as breach of warranty, misrepresentation, and deferred payment mechanisms. Several developing trends in dealmaking in recent years are shaping the landscape of M&A disputes.

ISDS reforms and ECT modernisation

In the past year, significant developments have reshaped the landscape of investor-state dispute settlement (ISDS), heralding major changes for businesses investing in foreign countries.

Key updates include the progress of UNCITRAL reforms aimed at improving ISDS proceedings, such as the introduction of a Code of Conduct for Arbitrators and Model Provisions on Mediation. The modernisation of the Energy Charter Treaty (ECT) now allows contracting parties to exclude investment protection for fossil fuels, introduces protections for carbon capture use and storage (CCUS) projects, and enhances transparency in arbitral proceedings. Additionally, new international investment agreements are increasingly incorporating sustainable development provisions, reflecting a shift towards more modern treaty features. The number of ISDS cases has surged, highlighting the growing reliance on these mechanisms to resolve investment disputes.

ISDS and mediation

Arbitration remains the dominant method for resolving investor-state disputes, but the increasing inclusion of mediation mechanisms in international investment agreements suggests a potential shift in the ISDS landscape.

While a 2022 survey indicated a growing use of institutional mediation, arbitration is still preferred due to mediation's limited track record and confidentiality concerns. Efforts by institutions like ICSID, which introduced new Mediation Rules in 2022, and ongoing reforms by UNCITRAL aim to enhance the role of mediation. Despite challenges, including investor apprehensions and structural impediments, the future of mediation in ISDS looks promising, with a trend towards integrating mediation into the dispute resolution framework.