Switzerland’s Top Performance in the 2023 ICC Arbitration 

For the third year in a row, Switzerland ranks third among the most popular seats of arbitration, with Geneva and Zurich securing their places as top venues. Of the 890 cases registered with the Secretariat of the ICC Court in 2023, 49 were seated in Geneva and 27 in Zurich. With a total of 79 cases Switzerland therefore represented 11.3% of the overall arbitration places selected worldwide. 

Due to the liberal approach of the Swiss legal system towards arbitration, its political stability and neutrality, and its top-notched facilities for international arbitration, Switzerland has been playing a prominent role in international arbitration for decades. Zurich and Geneva are often chosen as seats for international arbitration, even when none of the parties in the arbitration has a connection to Switzerland. The Swiss lex arbitri for international arbitration – i.e., the Swiss Private International Law Act (PILA) – provides a modern, foreseeable and arbitration-friendly legal framework. The PILA was updated in 2021, to make Switzerland an even more attractive venue for international disputes. For further insights on this topic, take a look at our blog post on the updates to the Swiss Lex Arbitri.

Swiss law is often chosen also as the substantive law applicable to the dispute and beyond its borders, as evidenced by the significant number of cases where Swiss law was the law chosen in international commercial contracts: Ranked second only to English law, Swiss law was chosen in 83 cases out of 890 cases representing almost 10% of new cases, underscoring its attractiveness for international contracts. When one looks at the number of Swiss parties involved, which amounts to 66 out of the 2’389 parties of the cases filed in 2023, it is apparent that also non-Swiss parties often choose Swiss substantive law. Swiss law is indeed known for being foreseeable and well-balanced, and for its emphasis on contractual freedom, which gives the parties a high degree of flexibility in shaping and structuring their agreement. 

Switzerland was also the ninth most common origin of parties involved in ICC arbitrations, with 66 cases, it was the third most common nationality of arbitrators, with 106 Swiss arbitrators appointed. This discrepancy suggests that non-Swiss parties frequently opt for Swiss law and arbitration venues, further affirming Switzerland's global appeal.

When one looks at the numbers in the ICC Statistics, numbers speak for themselves: 

• Switzerland as Seat of Arbitration: Switzerland was the seat of arbitration in 79 cases out of the 890 new cases filed in 2023, representing about 11.3% of the total seats (116 places overall). 
• Swiss Choice of Law: Swiss law was chosen in 83 cases, which accounts for approximately 9.3% of the 890 new cases.
• Swiss Arbitrators: Swiss nationals received 106 appointments out of 935 total appointments, representing about 11.3% of all appointments, slightly different from the 7.9% stated.
• Swiss Parties: Of the 2,389 parties involved in the cases, 66 were from Switzerland.

Overall, the 2023 statistics present encouraging data for Switzerland’s arbitration industry. The country’s position as a top choice for arbitration and the frequent application of Swiss substantive law highlight the trust and preference that international parties place in Switzerland's arbitration framework.

Regarding investor-state disputes, the 2023 ICC Statistics recorded two new cases being filed in 2023 under the arbitration rules pursuant to a bilateral investment treaty (BIT). The number of new investor-state disputes therefore remained the same as in 2022.

Outlook for the Future: Challenges and Opportunities

While Switzerland continues to thrive as a leading arbitration hub, there are several challenges that must be navigated in the coming years for Switzerland and Swiss practitioners to maintain their top position within the community. 

As the arbitration landscape evolves with technological advancements, Switzerland could lead in digital transformation. With the many advantages technological advancements offer, there are also concerns about the use of technology in arbitration proceedings, which mainly relate to confidentiality, data protection but also the integrity of evidence offered in proceedings. Swiss scholars and practitioners will have to find a way to balance these seemingly conflicting interests to find a way to embrace and use new technology while maintaining the integrity of the proceeding and applicable legal rules. 

Another growing focus in international arbitration concerns sustainability and the promotion of green arbitration practices: this is often linked to the growing digitalization and includes encouraging paperless proceedings and adopting protocols that minimize the carbon footprint of arbitration processes. Sustainability is also linked to the growing emphasis on diversity and inclusion in the international arbitration community. The Swiss Center of Arbitration has recently launched its Diversity Mission Statement, committing to a fair and just system of dispute resolution, strengthening its dedication to promoting diversity, equality, and inclusion in every aspect of its operations.

Furthermore, the problem of costs and enhancing cost efficiency is another issue that the Swiss arbitration community has on its radar: while Switzerland is renowned for its high-quality arbitration services – a fact that is reflected in the 2023 ICC Statistics – arbitration in Switzerland is still perceived by the users to be costly. Swiss legal professionals and, generally, the Swiss arbitration community will continue to explore ways to reduce costs and make proceedings more efficient. There are techniques and tools that can be employed in international arbitration to reduce costs, and with which Bratschi’s International Arbitration Team is familiar and is implementing to improve costs-efficiency for our clients. 

Conclusion

Switzerland’s top performance in the 2023 ICC arbitration statistics is a testament to its robust legal framework, neutrality, and commitment to excellence in arbitration. It also sends an encouraging signal to Swiss practitioners to continue navigating the current and future challenges the arbitration community faces. A joint effort of the Swiss arbitration community to meet the needs of parties from around the world in the years to come will only further raise confidence in the Swiss arbitration landscape.

For further insights and detailed analysis on the 2023 ICC statistics and Switzerland's role in the global arbitration landscape, please feel free to contact our team of experts.