Arbitration has been an important alternative to the regular courts for decades. This is no different in 2025. What is more, recent figures show the undiminished popularity of arbitration. A recent study of Queen Mary University of London and the School of International Arbitration (2025) shows that no less than 87% of respondents prefer arbitration for resolving cross-border disputes. This is a clear confirmation of the trust that companies around the world place in arbitration as a form of dispute resolution.
Why arbitration?
Arbitrage has several advantages, including:
- Flexibility: parties can largely decide for themselves what the proceedings will look like. This applies to the language, the applicable law, the location, and even the procedural rules.
- Expertise: parties choose their own arbitrators. In complex or technical disputes, they can therefore deliberately choose arbitrators with specific substantive expertise.
- Confidentiality: arbitration proceedings are usually not public. This is an important advantage for many parties, especially in the case of commercially sensitive disputes.
- International enforceability: arbitral awards can be enforced relatively easily in many countries thanks to the New York Convention.
- Another important point that follows from the Queen Mary Survey is that most parties comply with arbitral awards voluntarily. This stresses the effectiveness of arbitration.
Freedom of choice in rules and institutes
Arbitration allows parties to choose between various arbitration institutes and regulations. The International Chamber of Commerce (ICC) and the Netherlands Arbitration Institute (NAI) are a few well-known examples.
In the past few years, the NAI has taken important steps towards modernisation of its regulations. The expedited proceedings are a welcome addition. These proceedings are meant for cases that can be dealt with more speedily (within 6 to 7 months in general, according to the NAI). This makes them an effective mechanism to resolve disputes quickly and efficiently.
Arbitration in practice
The choice for arbitration already begins with entering into collaborations. Commercial agreements usually contain a disputes clause, in which the parties set out whether they will take a possible conflict to the regular courts or choose arbitration. This choice is decisive to the way in which a dispute is dealt with later on, and is therefore worthy of attention in the contracting phase. It is also important to consider a choice for a specific arbitration institute with accompanying regulations, and the question whether accelerated proceedings are desirable.
Are you considering arbitration or would you like advice about drafting an arbitration clause? Please feel free to contact one of our specialists of the dispute resolution team.
