IBA | Arbitration Country Guides

The IBA Arbitration Committee has prepared a guide to the law and practice of arbitration in more than 50 countries around the world. The material is intended as a high-level practical overview for practitioners and others seeking an introduction to arbitration in particular jurisdictions.

Each chapter indicates its authors, who may be contacted with questions or suggestions, and its date of publication.

Our Partners Laure-Hélène Gaicio-Fievez and Fabio Trevisan have contributed to the Luxembourg chapter.

 I. Background

(i) How prevalent is the use of arbitration in your jurisdiction? What are seen as the principal advantages and disadvantages of arbitration?

Luxembourg is a frequent seat in ICC, DIS and CEPANI arbitrations, and is seen as a convenient, central and neutral location to hold meetings and hearings between European parties.
Although alternative dispute resolution methods are not mandatory, their use has been promoted during the last years.
Luxembourg presents several significant advantages as a hub for arbitration, particularly in international and financial disputes. As a long-standing financial centre for EU investment funds and the banking sector, Luxembourg benefits from a stable geopolitical outlook, a AAA credit rating, and its central location in Europe. Its multicultural and multilingual environment further enhances its appeal as a neutral arbitration seat, enabling the smooth handling of complex, crossborder cases.
The recent law reform of 19 April 2023, modernising the New Code of Civil Procedure (Nouveau Code de Procédure Civile) has made arbitration in Luxembourg more attractive by introducing innovations such as the ‘support judge,’ (‘juge d’appui’) who assists parties in overcoming obstacles before the arbitral tribunal is constituted. Moreover, parties with no ties to Luxembourg can bring their cases before this judge when there is a risk of denial of justice in their home courts, a provision known as ‘universal jurisdiction’.
Arbitration in Luxembourg also offers other traditional benefits like speed, confidentiality and the flexibility to choose arbitrators and procedural rules. For example, the Luxembourg Arbitration Centre imposes a six-month deadline for arbitrators to render their decisions, ensuring a quicker resolution process. Combined with its political stability, renowned financial expertise and a wide range of multilingual legal professionals, Luxembourg is becoming an increasingly preferred venue for arbitration, particularly in the investment and financial sectors.

Read more in the Luxembourg chapter of the IBA Arbitration Guide.