Cyprus is moving toward becoming an international hub for dispute resolution through a sweeping legal reform: the Arbitration Law of 2025. The Ministry of Justice’s initiative, launched in late 2024, aims to ease the caseload in Cypriot courts while attracting foreign and domestic arbitration cases—potentially bringing millions into the country’s economy.

As Offsite reports, the bill will replace two outdated laws—Cap. 4 and the 1987 International Commercial Arbitration Law. Following public consultation ending August 1, it is expected to reach Parliament in September.

A Modern Framework

The law introduces a comprehensive structure for arbitration, covering both domestic and international disputes. It limits court intervention, streamlines procedures, and encourages alternative dispute resolution.

Arbitration Agreements & Interim Protection

• Requires written arbitration agreements.

• Allows courts to refer cases to arbitration if an agreement exists.

• Enables temporary protection measures by both courts and tribunals.

Tribunal Composition & Finality

• Parties can agree on the number and nationality of arbitrators.

• Courts can intervene if appointments fail.

• Arbitrator challenges must be filed within 15–30 days; most decisions are non-appealable.

Emergency Arbitrators & Tribunal Powers

• Allows appointment of emergency arbitrators before tribunal formation.

• Tribunals can grant interim relief, call witnesses, appoint experts, and decide procedural issues.

Hearings, Language & Process

• Parties may choose the legal system, language, and procedure.

• Hearings can be oral or document-based.

• The tribunal may issue partial or summary awards.

Award Issuance & Termination

• If no agreement exists, the tribunal applies relevant substantive law.

• Settlements can be confirmed as binding awards.

• Awards may be corrected or supplemented within 30 days.

• Arbitration costs can be allocated by the tribunal.

Challenging Awards

• Appeals allowed on narrow grounds (e.g. serious procedural issues).

• Deadline: 28 days from the issuance of the award.

Enforcement & Recognition

• Enforcement requires a written agreement and court intervention.

• Courts do not examine the case substance, only procedural validity.

Repeal of Existing Laws

The new legislation replaces Cap. 4 and the 1987 Arbitration Law to create a unified modern legal regime.

With this reform, Cyprus seeks to become a preferred venue for resolving international commercial disputes, much like the UK, Hong Kong, and Ireland. Its location, legal expertise, and revamped arbitration law form the pillars of this strategic vision.