International Commercial Arbitration at Iceland
International Commercial Arbitration in Iceland is governed by both domestic legislation and Iceland’s international obligations. Here's an overview of the key aspects:
⚖️ Legal Framework
Arbitration Act No. 53/1989
Iceland’s principal arbitration law.
Based largely on the UNCITRAL Model Law on International Commercial Arbitration, though with some modifications.
Governs both domestic and international arbitrations seated in Iceland.
International Conventions
New York Convention (1958): Iceland is a signatory. This ensures recognition and enforcement of foreign arbitral awards.
European Convention on International Commercial Arbitration (1961): Also ratified by Iceland.
🏛️ Arbitration Institutions in Iceland
There is no large, dedicated arbitration institution in Iceland like the ICC or LCIA. However:
Ad hoc arbitrations are common.
Some proceedings may be administrated by institutions such as:
The Icelandic Bar Association (providing rules and rosters of arbitrators).
Arbitration clauses in contracts often designate neutral international institutions if a dispute arises.
✅ Key Features of Arbitration in Iceland
Party autonomy: High level of flexibility in choosing rules, arbitrators, and language.
Neutral and independent judiciary: Icelandic courts support arbitration and are generally not interventionist.
Enforcement: Arbitral awards are enforceable under Icelandic law and international treaties like the New York Convention.
📍 Why Choose Iceland for Arbitration?
Neutral venue: Especially attractive for parties from Europe and North America.
Strong legal system: Independent judiciary and robust enforcement mechanisms.
Modern infrastructure: Iceland has good facilities and connectivity for international proceedings.
English-speaking professionals: Most legal professionals are fluent in English.
⚠️ Challenges or Considerations
Limited institutional infrastructure: Parties may prefer established institutions abroad.
Small legal community: Limited number of arbitrators with extensive international experience.
🔎 Example Arbitration Clause (Iceland)
Any dispute, controversy, or claim arising out of or relating to this contract, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the Icelandic Arbitration Act No. 53/1989. The seat of arbitration shall be Reykjavik, Iceland. The language of arbitration shall be English.
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