Law.com Compass: London's positioning as the Preferred Hub for Global Arbitration
London is the preferred seat for arbitration, however it is facing challenges to its position from other global legal hubs. What can it do to retain top spot?
February 13, 2023 at 10:32 AM
3 minute read
London is a global city and one of the biggest markets for legal services in the world. This is furthered by the UK capital being the main seat for commercial arbitration globally. Facilitated by the UK's entrenched law and justice systems, London boasts a long-held tradition of being a legal center where business transactions can be done with minimal risk and commercial disputes can be settled as fairly as possible. However, while London remains the preferred venue for international arbitration, other global hubs such as Singapore, Hong Kong, and Paris are now establishing themselves as key markets in this field.
According to the International Arbitration Survey 2021, London is the top destination for arbitration disputes, with 54% of respondents choosing the city as their preferred seat. However, the same survey also revealed that another global and increasingly important business hub, Singapore, is now tied with London as the go-to seat for arbitration, followed by Hong Kong, Paris, and Geneva. With increased competition from other global cities and a willingness from clients to use more "regional hubs," London now faces heightened risks to its position on the global stage when it comes to handling arbitrations.
One mechanism by which London has sought to retain its position as a leading seat has been through real estate, with new and modern arbitration centers opening in the city over the last few years. Both the International Arbitration Centre and the International Dispute Resolution Centre opened new centers in London in 2019 and 2021, respectively, and have been commended for having best-in-class facilities and being equipped with the latest technology to allow for more hybrid hearings to take place. This is especially pertinent as it can allow for more international arbitration cases to be heard. A recent article on Law.com International goes into further detail about London's new arbitration venues, their modernization and how they are attracting more users.
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