The International Arbitration Center at the AIFC – the key to effective resolution of international disputes

When doing business with foreign partners, companies face the question: how to protect their interests in the event of a dispute, especially if the counterparty’s assets are located abroad? Traditional state courts often prove ineffective in such cases. The solution for international commercial contracts is the International Arbitration Center at the AIFC (hereinafter referred to as the IAC).

What is the International Arbitration Center?

The International Arbitration Center (hereinafter referred to as the IAC) is a modern independent arbitration institution established on the basis of international standards. It operates on the basis of its own Arbitration Rules, outside the national court system, offering businesses a neutral, flexible, and predictable platform for dispute resolution.

The main goal of the IAC is to provide the parties with a neutral, predictable, and flexible mechanism for resolving commercial disputes that inspires confidence in both Kazakhstani and foreign companies. Arbitration may be conducted in English, applying the law chosen by the parties (including the law of the ICAC or foreign law).

Why is IAC chosen for international transactions?

The key advantage of the IAC, which makes it an indispensable tool for foreign trade and investment, is the international enforceability of its decisions.

IAC decisions are subject to recognition and enforcement in 172 countries worldwide thanks to the 1958 New York Convention.

It is extremely difficult to enforce decisions of the state courts of the Republic of Kazakhstan abroad—this requires international treaties, which makes the process lengthy and does not guarantee results.

This means that a decision won in the IAC can be enforced even if all of your counterparty’s assets are located, for example, in Europe or Asia.

Other important advantages of arbitration at the MAC:

• Confidentiality. All proceedings are closed to the public, unlike open court proceedings. This allows commercial secrets and business reputation to be protected.
• Flexibility and control for the parties. The parties to the dispute can choose the language of arbitration (including English), select arbitrators from a list of international experts, and determine the timing and procedure.
• Finality of decisions. The law provides very limited grounds for setting aside an arbitral award. This ensures stability and eliminates protracted appeals.
• Professionalism of arbitrators. The MAC list includes recognized global experts in commercial and investment law.

When is it better to use state courts?

Kazakhstan’s national courts remain the best choice for domestic disputes where all parties are residents of Kazakhstan and the disputed assets are located within the country. In this case, you will receive:

• Cost-effectiveness compared to international arbitration.
• The possibility of multi-stage appeals (appeal, cassation).

How to make the right choice?

Choose MAC if the contract is international (involving foreign companies) and neutrality, confidentiality, and the guarantee of enforcement of the decision abroad are critical for the parties.

Apply to the state courts of the Republic of Kazakhstan for a quick and cost-effective resolution of domestic disputes between Kazakhstani companies.