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The last decade has witnessed a significant growth in cross-border transactions and an increase in the number of investment treaties, leading to a notable growth in the number of international arbitrations and an increase in the diversity of stakeholders involved in arbitration disputes.
In order to keep up with the latest developments in the world, Turkey has also taken notable steps towards becoming an investor-friendly state, such as actively seeking to increase its bilateral investment treaties and introducing new local arbitration institutions, along with their own rules. As part of this effort, Turkey has adopted new arbitration rules to create a more favourable legislative framework for investors who are willing to resolve their disputes through arbitration, with significantly lower arbitration fees in comparison to foreign arbitration institutions. As an investor-friendly state, Turkey has been a party to 114 BITs, with 32 of them still in force.
Aiming to facilitate and encourage investors and foreign investment in Turkey, the Turkish International Arbitra- tion Law No 4686 (the “Arbitration Law”) was adopted in 2001. It is modelled on the UNCITRAL Model Law, with the same principles, such as equal treatment of parties, party autonomy, non-intervention by courts, and impartiality and independence of arbitrators.
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