28.11.2019 İstanbul
Speaking at the panel on “The Role of Arbitration in Increasing Trade and Investments in the Islamic World” at the 35th meeting of the COMCEC (Standing Committee on Economic and Commercial Co-operation of the Organization of Islamic Cooperation), the Union of Chambers and Commodity Exchanges of Turkey (TOBB) President and the Islamic Chamber of Commerce, Industry and Agriculture (ICCIA), Vice President M. Rifat Hisarcıklıoğlu stressed that they have taken a step of historical importance and established the Islamic Arbitration Center. Hisarcıklıoğlu, “İstanbul is hosting the center. Our government has provided support. We as TOBB allocated space. We've prepared all the opportunities for it to work in the best way possible. As someone who has seen the arbitration personally, I'd like to say this. I believe that this center will further raise the trade and investments between us."
Hisarcıklıoğlu,
noting that COMCEC is an international organization with 57 members, 5 observer
countries and a population of 1.7 billion; the largest members and
representative capacity after the United Nations, said, “The most important
platform that brings the Islamic world together. Therefore, it is in the best
interest of all of us to make the best use of this platform and strengthen our
unity. We, TOBB and the Islamic Chamber of Commerce, Industry and Agriculture,
have acted with this vision.”
- Arbitration increased foreign
investors
Hisarcıklıoğlu
reminded that foreign direct capital investment in Turkey was below $1 billion
per year, “Then our government added arbitration to our national legislation.
As a result of this, Turkey's appeal to investors has increased. Incoming
foreign direct investment has risen to $10 billion annually. Therefore,
arbitration is a very important issue for business. Because trading and
investing mean taking risks. When you do that in another country, the risk gets
bigger. Because there are different regulations, different applications in each
country. Investors can't possibly know all this. This reduces the appetite for
trade and investment. In the event of any dispute, the presence of an
impartial, objective, respectable, clearly-defined applicant body protects all
parties. It makes that country more attractive to businessmen.”
- Arbitration is both fast and
cheap
Hisarcıklıoğlu
emphasized that arbitration is faster and much cheaper than the normal court
process, and pointed out that years of litigation can be resolved for months in
arbitration. M. Rifat Hisarcıklıoğlu said, “Arbitration has now become an
essential prerequisite for doing business. Look at the most developed countries
in the world. They realized that almost a century ago. They've set up their own
arbitration. As of today, 75% of commercial disputes in developed economies are
resolved by alternative dispute resolution methods, such as arbitration.
So
only one out of four disputes goes to the standard judiciary. Why? Because for
us in the business world, time means money. Now it's our turn. Let's make sure
that the Islamic Arbitration Center is the right address, which comes to mind
first in resolving commercial disputes.
Look,
we have a saying: don't be afraid of an earthquake, they say be afraid not to
take precautions. Here's what we say to businessmen in our countries. Don't be
afraid to have trouble with trade, be afraid of not taking precautions. And
make that precaution arbitration. Let's bring this up in our countries. When
our businessmen make any contract, immediately come to mind the Islamic
Arbitration. Let them add that to their contracts. To resolve trade disputes, choose
and use arbitration, which is fast, practical and reliable
I
would like to ask you to provide the necessary publicity and information in
your countries. We, as the Islamic Chamber, are ready to provide support.”