Georgian International Arbitration Centre
Georgian International Arbitration Centre was founded with the initiative of the Georgian
Chamber of Commerce and Industry (GCCI). The GCCI – as the organization protecting the
interests of business entities in Georgia, considering the significance of the establishment of
independent and reliable alternative dispute resolution mechanisms in the country, took into
account an imminent necessity of modernization of already existing old-fashioned and inefficient
arbitration court at the Chamber. The GCCI relying on the international practice, according to
which the Chamber of Commerce worldwide creates the arbitration institutions, founded
Georgian International Arbitration Centre (GIAC) in December 2013.
One year of active cooperation of the GCCI and its partner organizations proceeded the
establishment of the GIAC. The GIAC is incorporated in a legal form of a non-profit organization
and it is not profit oriented. This factor is particularly important given the fact that the GIAC is
the only not profit oriented arbitration institution in Georgia. Therefore, the GIAC is arbitration
institution founded at the GCCI and it has replaced previously existing “Arbitration Court at the
Georgian Chamber of Commerce and Industry LLC”, operation of which was suspended in 2012.
The central objective of the GIAC is to establish neutral, efficient and flexible alternative dispute
resolution mechanisms. With the consideration that there was no international arbitration
institution in the region, formation of the GIAC was an event of a huge significance.
 Formation of GIAC - The formation of GIAC was one of the most significant GCCI projects.
Considering the complex and comprehensive character of the project, it was decided to involve
various interested organizations in its implementation for achievement of a successful execution
of the project.
With the initiative of the GCCI, the GIAC Formation Working Group was created for
determination of the main actions, directions and structural formation issues of the establishment
of an arbitration institution at the Chamber. The Working Group was composed of the
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representatives of the Ministries of Justice, Finance and Economy and Sustainable Development
of Georgia, also representatives of the Supreme Court, NGOs – EWMI (JILEP Project),
Transparency International Georgia, Georgian Young Lawyers Association, and as well as
representatives of the private sector.
The working group mainly worked on institutional matters – such as the legal form and corporate
structure of the prospective arbitration institution. From the outset, the target was to implement
the international practice and experience, at the same time taking into consideration the Georgian
reality.
The Structure of GIAC is be a guarantee of the independence and impartiality of the Arbitration
Centre, as well as of the resolution of the disputes efficiently and professionally.
GIAC is structurally independent from its founder – GCCI, it is a self-governing organization and
such corporate structure is a guarantor of the Arbitration Centre’s independence and neutrality.
For this purpose, the corporate structure of the Center is determined in the following manner: The
Board – responsible for corporate matters and strategic development of the GIAC;1 the Secretariat
– responsible for daily operation of the GIAC and administering of the disputes; the Arbitration
Council – body taking decisions related to specific matters strictly determined by the GIAC
Arbitration Rules and GIAC Charter.2
 The GIAC Arbitration Rules - Several members of the Formation Working Group also worked
on the first version of the Arbitration Rules of GIAC. While preparing the first draft of GIAC
Arbitration Rules, the following arbitration institutions and their arbitration rules were taken in to
consideration: ICC International Court of Arbitration, Arbitration Institution of the Stockholm
Chamber of Commerce, Netherlands Arbitration Institute, Vienna International Arbitration
Centre, and Singapore International Arbitration Centre.
The Commission for Final Revision of the GIAC Arbitration Rules was created by the
recommendation of the experts involved in the formation process of the Georgian International
Arbitration Centre and its final composition was approved on 25 April 2014. The members of this
Commission were internationally renowned and recognized arbitration experts and practitioners.
The members of the GIAC Board: Kakha Biandurashvili (Chairman); Eka Gigauri, Zviad Kordzadze
(Deputy Chairman), Jemal Inaishvili, Eprem Urumashvili and the Honorary member of the GIAC Board –
Dr. Yas Banifatemi.
2 The Members of the GIAC Arbitration Council – Irakli Kordzakhia (Chairman), Nicola Mariani (Deputy
Chairman), Tea Megeneishvili (Deputy Chairperson), Eva Kalnina, Maria Kostytska, Sophie Tkemaladze,
Pierre Tercier.
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This ensures that the GIAC Arbitration Rules are drafted based on the modern standards and best
arbitration practices, and signals its reliability and recognition.
The working version of the Arbitration Rules organized several working sessions during the
summer of 2014 and prepared the final draft of the revised GIAC Arbitration Rules. The GIAC
Arbitration Rules were adopted by the GIAC Board in September 2014.
ADVANTAGES OF GIAC
The main function of GIAC is to administer the arbitration proceedings. Additionally, it aims to
develop and popularize the alternative dispute resolution mechanisms in Georgia and in entire
region as Georgia has a great potential to become the suitable arbitration forum in the whole
region:

Georgian legal system is modern and arbitration-friendly with its Law on
Arbitration based on the UNCITRAL Model Law on International Commercial
Arbitration;

Georgia is the member of the 1958 New York Convention on Recognition and
Enforcement of the Foreign Arbitral Awards;

Georgian legislation permits parties freedom of choice of counsel and arbitrators;

Georgia has open economy, low level of corruption and pro-business
environment;

Georgia is best located in the region on the crossroads of Europe and Asia;

Georgian legislation permits foreign residents to carry out arbitration without
work permits or additional formal requirements;

Georgia is a low cost environment, hotels and restaurants prices are, on an
average, substantially lower than in other European countries;
The Arbitration Rules of GIAC has no analogue in Georgia. GIAC Rules combine recent
developments and well-tried provisions in order to create a modern set of rules reflecting the needs
of the parties.
In addition to the flexible arbitration rules, GIAC provides the necessary facilities for dispute
settlement, such as meeting rooms for arbitration hearings, party negotiations, arbitrators’
deliberations, mediation proceedings, etc. and assistance with further logistical organization, e.g.
identifying and obtaining court reporters, administrative secretaries or interpreters.
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
GIAC arbitration Rules are tailor made the parties’ needs - The GIAC Rules were drafted
with the help of the international experts and arbitration practitioners. The international
involvement in the drafting process guarantee that the rules meet all international criteria and
represent the modern accepted standards.
The GIAC Arbitration Rules allow full scale party autonomy within permissible legal framework.
The conduct of proceedings may be determined by the parties and the tribunal. The parties can
choose the language of the proceedings, the seat of arbitration and the applicable substantive law.
All arbitrators, appointed by the Parties or by the GIAC Arbitration Council, are required to
submit a statement of independence (“disclosure”) to the parties, to their counsels, and GIAC
Secretariat. A full respect of arbitrators’ independence is the very first step to grant a correct
conduct of the proceedings. In this respect, the GIAC is committed to constantly monitor the
independence and impartiality of the arbitrators. GIAC will appoint arbitrators if no agreement
can be reached by the parties, thus ensuring that the time efficiency of the proceedings.
The GIAC Rules allow for the joinder of third parties and consolidation of proceedings in a flexible
manner, which is novelty in Georgia.
In order to enhance the enforceability of the award, the GIAC Arbitral Council scrutinizes the
award and approves it.

GIAC arbitration is cost effective - Costs for arbitrators and administrative services are
significantly lower in comparison to other arbitration institutions, as well as litigation. Additionally,
The GIAC fee schedule allows for a predictable cost calculation. It should be mentioned, that
GIAC facilities for dispute settlement are free for the parties, which also serves to reduce the costs
associated with the dispute resolution.

Close cooperation with leading international organizations and experts - Many
internationally renowned experts participated in the GIAC formation process. GIAC continues to
cooperate with the internationally recognized experts, arbitration institutions and law firms.
Additionally, GIAC runs the arbitration list, which is constantly updated. Currently, GIAC
arbitration list includes Arbitrators from leading international law firms of London, Paris, Vienna,
Geneva, Dubai, Warsaw, Moscow, Budapest, Belgrade etc. In addition, negotiations are underway
for the addition of the new arbitrators on the list. The parties may choose the arbitrator from the
list, who will be maximally adapted to the specific of their dispute.

Partner organizations and law firms:
Transparency International Georgia;
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Georgian Association of Arbitrators;
Permanent Court of Arbitration in the Hague;
Georgian Law Firms Association;
Arbitration Initiative Georgia;
White & Case;
Dechert LLP;
E&A Law Limited;
Shearman & Sterling LLP;
Lévy Kaufmann- Kohler.
It should be also mentioned, that GIAC Georgian International Arbitration Centre will be featured
in Guide to Regional Arbitration 2015. Global Arbitration Review (GAR) is nowadays recognized as
the leading resource on international arbitration news and community intelligence.
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