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International arbitration law and rules in Bangladesh

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Conflicts involving many nations are unavoidable in today’s linked and more globalized corporate landscape. Bangladesh has adopted international arbitration as a preferred method for the resolution of such disputes in light of the country’s growing awareness of the significance of establishing an environment that is friendly to international commerce.

This article examines the laws and norms governing international arbitration in Bangladesh, looking into their history, important components, and the benefits they bring in aiding fair and quick settlement of cross-border disputes.

Evolution of International Arbitration Law in Bangladesh:

1. The Arbitration Act of 2001:

At the core of arbitration in Bangladesh is the Arbitration Act of 2001. This legislative milestone signifies Bangladesh’s commitment to aligning its arbitration practices with international standards. The Act provides a comprehensive legal framework governing both domestic and international arbitration, emphasizing principles of neutrality, efficiency, and enforceability.

2. International Recognition:

Bangladesh, as a signatory to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), demonstrates a commitment to facilitating the recognition and enforcement of foreign arbitral awards. This international recognition enhances the attractiveness of Bangladesh as a seat for arbitration.

Key Principles of International Arbitration Law in Bangladesh:

1. Autonomy and Neutrality:

Fundamental to international arbitration in Bangladesh are the principles of party autonomy and neutrality. Parties enjoy the freedom to choose arbitrators and determine procedural rules, ensuring a tailored and impartial resolution process.

2. Enforceability of Awards:

The Arbitration Act of 2001 places significant emphasis on the enforceability of arbitral awards, aligning with international best practices. This commitment assures parties that their awards will be globally recognized and enforced, adding to the appeal of Bangladesh as an arbitration-friendly jurisdiction.

3. Confidentiality:

Confidentiality is a cornerstone of arbitration in Bangladesh. Conducted behind closed doors, these proceedings afford parties a level of discretion not always present in traditional litigation. This confidentiality fosters a collaborative environment for dispute resolution.

Legal Frameworks Supporting International Arbitration:

1. The Arbitration Act of 2001:

The Arbitration Act of 2001 serves as the primary legal framework for international arbitration in Bangladesh. It delineates procedures for conducting arbitrations, the enforcement of awards, and the relationship between domestic and international arbitration regimes.

2. Bangladesh International Arbitration Centre (BIAC):

Established in 2011, BIAC plays a pivotal role in promoting and facilitating international arbitration. As an independent and neutral institution, BIAC provides administrative support for arbitrations, contributing to the efficiency and credibility of the arbitration process.

Advantages of International Arbitration in Bangladesh:

1. Flexibility and Efficiency:

International arbitration offers flexibility in procedural matters, allowing parties to tailor the process to their specific needs. This flexibility contributes to the efficiency of the proceedings, often leading to quicker dispute resolution compared to traditional litigation.

2. Global Enforcement:

Bangladesh’s adherence to the New York Convention ensures that arbitral awards made in the country are widely enforceable internationally. This global recognition enhances the appeal of Bangladesh as a seat for arbitration.

3. Expertise and Neutrality:

Bangladesh’s commitment to party autonomy allows parties to choose arbitrators with expertise in the relevant industry or legal domain. The neutrality of the arbitration process contributes to a fair and impartial resolution of disputes.

Challenges and Considerations:

1. Awareness and Education:

A key challenge in the landscape of international arbitration in Bangladesh is the need for increased awareness and education. Stakeholders, including businesses and legal professionals, may benefit from a broader understanding of the advantages and procedures of international arbitration.

2. Capacity Building:

While Bangladesh has made significant strides, ongoing efforts in capacity building are crucial. This involves training arbitrators, legal practitioners, and professionals involved in the arbitration process to ensure a pool of skilled individuals capable of handling complex international disputes.

Case Studies:

1. Landmark International Arbitration Cases:

Examining landmark arbitration cases involving Bangladeshi parties provides insights into the effectiveness of the country’s arbitration framework. These cases showcase the successful resolution of disputes and the enforceability of awards in diverse industries.

The Future of International Arbitration in Bangladesh:

1. Enhancements to Legal Frameworks:

The future of arbitration in Bangladesh involves ongoing enhancements to legal frameworks. Periodic revisions to the Arbitration Act and continuous alignment with international best practices will contribute to the growth and attractiveness of Bangladesh as an arbitration hub.

2. Promotion and Marketing:

Strategic promotion and marketing efforts can elevate Bangladesh’s profile as an arbitration-friendly destination. Highlighting success stories, promoting the advantages of arbitration, and participating in international forums contribute to the country’s visibility in the global arbitration landscape.


The landscape of international arbitration law and rules in Bangladesh reflects a commitment to providing a fair, efficient, and globally recognized mechanism for cross-border dispute resolution. Through legislative frameworks, institutional support, and adherence to international conventions, Bangladesh has positioned itself as an emerging hub for international arbitration. As the country continues to navigate the complexities of global business, arbitration stands as a beacon, offering parties a reliable and effective means of resolving cross-border disputes in an ever-expanding international


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