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International and Domestic Arbitration Bangladesh

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In the complex realm of global business, the resolution of disputes plays a crucial role in maintaining stable and trustworthy commercial relationships. Bangladesh, emerging as a significant player in the global economic landscape, has strategically adopted both international and domestic arbitration to expedite impartial resolutions to conflicts. This article delves into the intricacies of arbitration in Bangladesh, examining the distinctive features, legal frameworks, and contributions of both domestic and international arbitration to fostering a conducive business environment.

Domestic Arbitration in Bangladesh:

1. Legal Foundations:

Domestic arbitration in Bangladesh finds its legal roots in the Arbitration Act of 2001. This legislation forms the bedrock for resolving disputes within the country’s borders, offering a structured framework that emphasizes fairness, efficiency, and enforceability.

2. Applicability and Scope:

The Arbitration Act of 2001 is applicable to disputes arising from civil and commercial matters within Bangladesh, covering a wide range of conflicts, including those related to contracts, commerce, and other legal relationships. Domestic arbitration provides parties with a flexible and private forum, avoiding the formalities of traditional litigation.

3. Arbitral Awards Enforcement:

A notable strength of domestic arbitration lies in the enforceability of arbitral awards. The legal framework ensures that awards rendered through arbitration are recognized by the courts and can be enforced similarly to a court judgment, contributing to the effectiveness and credibility of the domestic arbitration system.

International Arbitration in Bangladesh:

1. Evolution and Global Commitments:

International arbitration in Bangladesh has undergone significant evolution, guided by both domestic legislation and international conventions. The Arbitration Act of 2001 incorporates provisions for international arbitration, aligning with the country’s dedication to creating a business-friendly environment on the global stage.

2. United Nations Conventions:

Bangladesh’s commitment to international arbitration is underscored by its adherence to key international conventions. As a signatory to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), Bangladesh facilitates the recognition and enforcement of foreign arbitral awards, augmenting its attractiveness as a seat for international arbitration.

3. Bangladesh International Arbitration Centre (BIAC):

The establishment of the Bangladesh International Arbitration Centre (BIAC) in 2011 further solidifies Bangladesh’s position as a hub for international arbitration. Operating as an independent institution, BIAC provides crucial administrative support for international arbitrations, ensuring a seamless and efficient resolution process.

Comparative Analysis: Domestic vs. International Arbitration:

1. Applicability:

Domestic arbitration is limited to disputes arising within Bangladesh’s geographical boundaries, while international arbitration extends its reach to conflicts involving foreign entities or interests. The key distinction lies in the international character of the parties or subject matter involved.

2. Legal Framework:

While both domestic and international arbitration in Bangladesh share the foundation of the Arbitration Act of 2001, international arbitration involves additional considerations, such as the enforcement of foreign arbitral awards under the New York Convention. This dual framework reflects Bangladesh’s commitment to aligning with global arbitration standards.

3. Enforcement Mechanisms:

Arbitral awards from domestic arbitrations benefit from streamlined enforcement within Bangladesh. In contrast, international arbitration awards, especially those involving foreign parties, leverage the mechanisms outlined in the New York Convention for global recognition and enforcement.

Advantages of Arbitration in Bangladesh:

1. Neutrality and Impartiality:

Both domestic and international arbitration in Bangladesh uphold the principles of neutrality and impartiality. Parties enjoy autonomy in selecting arbitrators, ensuring a fair and unbiased resolution process.

2. Efficiency and Cost-Effectiveness:

Arbitration, whether domestic or international, offers a more streamlined and efficient dispute resolution process compared to traditional litigation. The flexibility in procedural matters contributes to quicker and cost-effective resolutions.

3. Confidentiality:

Confidentiality is a shared advantage in both arbitration settings. Proceedings are conducted privately, preserving the sensitive nature of business disputes and fostering a cooperative atmosphere for resolution.

Challenges and Considerations:

1. Awareness and Education:

A common challenge for both domestic and international arbitration in Bangladesh is the need for increased awareness and education. Businesses and legal professionals may benefit from a deeper understanding of the advantages and procedural intricacies of arbitration.

2. Capacity Building:

Ongoing efforts in capacity building are crucial for the continued success of both arbitration systems. This involves training arbitrators, legal practitioners, and professionals involved in the arbitration process to ensure a skilled and proficient pool of individuals.


In the dynamic realm of commercial transactions, the harmonious interplay between domestic and international arbitration in Bangladesh paints a comprehensive picture of a country committed to providing efficient, fair, and globally recognized dispute resolution mechanisms.

Whether navigating local business intricacies or participating in cross-border transactions, the dual arbitration systems contribute significantly to Bangladesh’s role as an emerging economic force on the international stage.

As the country continues its journey of economic growth and development, the resilience and adaptability of its arbitration frameworks position Bangladesh as a preferred destination for resolving disputes in a rapidly evolving global business landscape.


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