A modern state can hardly do a more generous deed than to open within its own borders, and yet free of its own influence, to parties of trade and commerce from all other nations a forum to settle disputes in an independent, impartial, efficient and equitable manner.
Thomas Krummel
This is precisely what Kazakhstan has achieved with the establishment of the International Arbitration Centre (IAC) within the Astana International Financial Centre (AIFC). Since its launch in 2018, the IAC has had a substantial impact on Kazakhstan’s legal landscape, quickly establishing itself as a regional leader in commercial dispute resolution by offering a model grounded in international best practices.
Legal certainty that builds investor confidence
While international standards are critical for investor trust, providing legal certainty plays an equally critical role in attracting foreign investment to Kazakhstan. When a foreign investor is considering doing business in Kazakhstan — perhaps entering into a multi-million вollar contract with a local partner — confidence in the legal environment becomes a deciding factor. It is not just about how smoothly the contract might proceed under ideal conditions, with clear skies and sunshine. What truly matters is how robustly the investor’s rights are safeguarded and defended on rainy or stormy days, when disputes arise.
This is where the IAC plays a vital role. Investors must be able to rely on an equitable, independent, efficient, and impartial system for resolving disputes in their target market. If this market is Kazakhstan, they expect nothing less than a world-class dispute resolution service — and that is precisely what we at the IAC deliver.
Fast, fair, and cost-effective dispute resolution
The IAC offers a number of distinct advantages that make it an attractive choice for businesses seeking reliable and efficient dispute resolution.
First and foremost, the IAC is robustly independent. This independence extends, beyond the arbitrators, to the institution itself, ensuring complete impartiality throughout the entire arbitration or mediation process. Institutional independence is absolutely vital for parties who need to trust that their dispute will be resolved without any external influence. The very credibility of an arbitration centre like the IAC depends on its independence as an institution.
Secondly, the IAC is highly flexible, with processes designed to meet the specific needs of investors. Flexibility is embedded in our services — it is in our very DNA. Our goal is to deliver dispute resolution that is not only professional, independent, fair and impartial but also time-efficient, and that brings forth the resolution of the dispute as speedily as possible. In many cases, a dispute in arbitration is not the end of the road for the parties; they rather wish to be able to go on with their business as quickly as possible. We do our utmost to make that happen.
Thirdly, the IAC is highly cost-effective. Our application fees are moderate, often as much as 50% lower than those of other international arbitration centres. We also focus on streamlining our procedures to reduce costs further, making proceedings as smooth, efficient, and speedy as possible — all while maintaining the highest quality of service.
Finally, the IAC provides a unique advantage to investors seeking to enforce arbitral awards in Kazakhstan. Awards issued under the IAC Rules can be enforced anywhere in the country with the assistance of the AIFC Court, which acts as the enforcement court, and on the basis of a well-established co-operation with the Kazakh Ministry of Justice and the Kazakh National Association of Bailiffs. Also, Kazakhstan is a party to the 1958 New York Convention, meaning that IAC arbitration awards can also be enforced in more than 170 countries worldwide, in accordance with that Convention.
Efficient case management and statistics
The case management procedure at the IAC is built around the overriding objective of arbitration and mediation: to achieve the fair resolution of disputes by an impartial tribunal without unnecessary delay or expense. This principle is fundamental to the IAC and serves as the guiding rationale for all our case management practices.
Requests for arbitration can be filed in writing — whether on paper, electronically, or via the IAC’s eJustice system. Upon receipt, the IAC’s team immediately reviews the Claimant’s request for arbitration and serves it to the Respondent party. We then support the parties in identifying and nominating suitable and qualified arbitrators or mediators, if they have not already made selections themselves. Following this, we appoint the arbitrators or mediators and continue to act as the management body for the entire proceedings, up to the issuance of an arbitral award and assistance with enforcement through the AIFC Court thereafter.
Since the commencement of our operations on Jan.1, 2018, the IAC has had a substantial number of cases across arbitration and mediation. To date, we have issued a total of 797 arbitral awards and 2,780 mediation settlements, demonstrating the growing trust of parties in our services.
In terms of recent annual trends, the IAC continues to see a steady rise in arbitration cases. In 2023, we handled 203 cases, and in 2024, that number increased significantly to 243. Based on current data and without being overly optimistic, we expect this year’s caseload to reach between 250 and 300 arbitration cases. IAC cases to date have involved international investors from 34 countries doing business in Kazakhstan, amounting to billions of U.S. dollars in investments. So far this year alone, the IAC has completed 319 cases, including 63 arbitration cases.
International recognition and strategic partnerships
The IAC’s growing international recognition is no coincidence—it is the result of sustained and strategic effort. Our long-term vision is and always has been to position the IAC as a trusted and internationally respected arbitration institution. This is being achieved through consistent engagement, strong institutional development, and the deliberate expansion of our international relationships.
In this process, strategic partnerships play a central role. To date, the IAC has signed 125 memoranda of understanding (MoUs), both within Kazakhstan and internationally. While a number of these partnerships support our day-to-day operations, a significant portion is aimed at formalizing relationships with arbitration institutions across the globe. These include partners in Central Asia, China, and many other jurisdictions. The objective is clear: to strengthen the IAC’s international standing and to encourage the referral of more cross-border cases to the IAC.
We work actively to bring those partnerships to life. A particularly significant example is our collaboration with universities across Kazakhstan. Through these partnerships, we provide students with direct immersion into arbitration in practice—through training, internships and educational programmes. This is a long-term investment in both the growth and the international credibility of our Centre.
The IAC maintains a strong and co-operative relationship with the Supreme Court of Kazakhstan and the wider legal community. Many of our MoUs aim to strengthen this co-operation through joint initiatives that promote the rule of law, both nationally and internationally. These collaborations are designed not only to support the IAC’s institutional development but also to make a valuable contribution to the evolution of legal practice and the access to justice in Kazakhstan and beyond.
Innovation, growth, and the future of arbitration
The IAC has clear plans for future expansion, focusing on five essential areas:
Enhancing International Recognition: Our efforts to increase international recognition remain central to our strategy. This will be achieved through the continued quality of our arbitration services and the work of our arbitrators, positioning the IAC as a critical resource for investors and businesses operating in Kazakhstan.
Achieving a Gold Standard in Case Management: We are focused on reaching a top-tier international standard in case management. With ongoing staff training and process improvement, we are steadily progressing toward this goal, aiming to be recognized as a leading institution in global arbitration management.
Quality Justice Backed by Effective Administration: While our existing system of quality justice is already well-established, we are committed to refining it further. Continuous enhancement of our administration and operational practices is crucial for maintaining and improving the standard of service we provide.
Integration of AI Technology: The use of artificial intelligence is an important part of our forward-looking strategy. We are already making strides in AI integration, particularly with regard to transcription services for hearings. Our goal is to enable multilingual support for those whose primary language may not be English, offering real-time translations in Russian and Kazakh during proceedings.
Expansion of Training Programs: The IAC Training Centre has been a key part of our mission for several years. We aim to broaden and deepen our offerings, providing comprehensive training to a range of professionals, from arbitrators to students, ensuring that the next generation of legal professionals is equipped with the skills they need to succeed in international arbitration.
A gift to the world
As Kazakhstan continues to establish itself as an investment destination, the IAC stands as a testament to the country’s commitment to providing world-class, impartial, and efficient dispute resolution services that protect and support international business interests. Our work is a consistent service to the international business community—and equally, a strategic asset for Kazakhstan. With the multitude of possibilities that it offers, its excellent staff and infrastructure, its forward-looking strategy and development and its unwavering commitment to legal service quality, impartiality and robust independence, the IAC at the AIFC is not just one of many benefits to those who to Kazakhstan for business—it truly is Kazakhstan’s gift to the world.
The author is Thomas Krümmel, the chairman of the International Arbitration Centre at the Astana International Financial Centre.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of The Astana Times.
