SSS · Investment Protection & Arbitration

Our contract with a state institution has no arbitration clause; what can we do?

The absence of an arbitration clause does not leave your investment unprotected. The bilateral investment treaties to which Türkiye is a party, and the multilateral mechanisms alongside the…

Updated · July 20262 dk okumaCategory · Investment Protection & Arbitration
Short answer

BIT protection can apply independently of the contract; moreover, pre-dispute positioning (documentation, notices) increases your options. Have the case analysed early.

The absence of an arbitration clause does not leave your investment unprotected. The bilateral investment treaties to which Türkiye is a party, and the multilateral mechanisms alongside them, can give a foreign investor a route against the host state that exists independently of the contract — investment arbitration. That protection is conditional, though: it depends on the investment having been made through a structure that qualifies for it. Positioning before a dispute matures — documenting decisions and correspondence, serving notices in time and in the proper form — widens your options, so have the file analysed early.

One practical first move preserves your options: a formal written notice of dispute often starts a mandatory negotiation, or “cooling-off,” period that many treaties require before arbitration. Serving it early — and documenting the state’s conduct as it unfolds — keeps the arbitration route open and strengthens the record even where the contract itself says nothing. Domestic remedies belong in the same assessment and not as a fallback: an administrative application and the administrative courts run in parallel and carry deadlines of their own. Analysing the file early is what settles which treaty can be invoked, what notice and time conditions attach to it, and which forums are genuinely available — and positioning early improves the negotiating position too.

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This content is for general information only and does not constitute legal advice. Please contact our team for an assessment of your specific circumstances.
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Investment Protection & Arbitration

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