International Commercial Arbitration
 
International arbitration is based on the International Commercial Arbitration Law 101/1987, which we shall examine below, and is restricted to commercial activities.

The International Commercial Arbitration Law 101/1987 provides for the international arbitration in commercial matters and for matters therewith. Law 101/1987 is based on the United Nations Commission of International Trade Law (UNCITRAL).

The law provides significant definitions as to the jurisdiction and nature of commercial activities that fall therein.

1. "International" is an arbitration if:

(a) The parties to an arbitration agreement have, at the time of the conclusion of that agreement, their places of business in different States; or

(b) One of the following places is situated outside the State in which the parties have their places of business: the place of arbitration if determined in, or pursuant to, the arbitration agreement; any place where a substantial part of the obligations of the commercial relationship is to be performed or the place with which the subject-matter of the dispute is most closely connected; or the parties have expressly agreed that the subject-matter of the arbitration agreement relates to more than one country. If a party has more than one place of business, the place of business for the purpose of subsection (2) is that which has the closest relationship to the arbitration agreement; and if a party does not have a place of business, reference is made to his habitual residence.

2. "Commercial" is an arbitration if:

It refers to matters arising from relationships of a commercial nature, whether contractual or not.

The term "relationships of a commercial nature" includes, but is not limited to the following transactions:

  • Any trade transaction for the supply or exchange of goods or services;
  • Distribution agreement;
  • Commercial representation or agency;
  • Leasing;
  • Construction or works;
  • Consulting;
  • Engineering;
  • Licensing;
  • Investment;
  • Financing;
  • Banking;
  • Insurance;
  • Exploitation agreement or concession;
  • Joint venture and other forms of industrial or business co-operation;
  • Carriage of goods or passengers by air, sea, rail or road.

PART VIII of the International Commercial Arbitration Law 101/1987 incorporates the New York Convention 1958 on the recognition and enforcement of foreign arbitral awards. Cyprus has signed the convention in December 1980.

Cyprus may be regarded as an excellent venue for international commercial arbitration for the following reasons:

  • Geographical location;
  • Level of expertise of Cypriot Arbitrators;
  • Provision of professional services;
  • Adoption of UNCITRAL model.