Establishment of an international commercial arbitration court in Cyprus

On November 5, 2018, the Minister of Justice of the Republic of Cyprus, Mr. Ionas Nikolaou, released a statement regarding two new draft laws, on creation of a Commercial Court and on amendments to the Law on International Commercial Arbitration. As recorded in the statement by the Minister of Justice, alternative dispute settlement as well as expedited hearing of business affairs will play an important role in Cyprus' long-term economic growth.

In particular, the Commercial Court will examine cases concerning, for instance, business litigation, disputes related to the purchase, sale, export or transfer of goods, oil, gas or other natural resources, as well as banking and financial matters, commercial activities, commercial representation, intellectual property, arbitration, etc.

In less than a year, two commercial courts (in two cities) will help consider approximately 200-250 cases related to litigation valued over 2 million euros.

The first draft law embraces provisions on its structure, jurisdiction, qualifications required for the appointment of a judge of the Commercial Court, and the possibility of rehearing of the court decisions. It should be noted that a budget was already allocated in 2019 for the salaries of five judges serving in the Commercial Court.

The second draft law regards amendments to the Law on International Commercial Arbitration. Its aim is to enhance the advantages of choosing Cyprus, and in particular its legal framework, for the settlement of commercial disputes arising from trade or cross-border activities. Cyprus has significant advantages that make it an ideal "bridge" for conducting tripartite negotiations, and is one of the main regional economic and business hubs for attracting foreign investment.