arbitral award

arbitration cyprus - Enforcing Foreign Arbitral Awards: A Comprehensive Guide

In the fast-paced world of international trade and commerce, disputes are inevitable. Many businesses turn to arbitration, a form of alternative dispute resolution, to resolve disagreements efficiently and fairly. This article provides a comprehensive guide on enforcing foreign arbitral awards in Cyprus.

Introduction to International Commercial Arbitration

International commercial arbitration is a method of dispute resolution where parties to an international business transaction agree to resolve their disputes privately by arbitrators rather than through litigation in court. This method is commonly chosen due to its flexibility, confidentiality, and the enforceability of the awards. One of the key features of arbitration is the recognition and enforcement of arbitral awards across borders, facilitated by the New York Convention of 1958, to which Cyprus is a signatory.

Cyprus and the New York Convention

Cyprus has been a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, better known as the New York Convention, since 1980. This international instrument facilitates international trade and investment by ensuring the international recognition and enforcement of arbitral awards. As a signatory, Cyprus has committed to recognize and enforce arbitration agreements and foreign arbitral awards issued in other contracting states, subject to specific conditions and exceptions.

Process of Enforcing Foreign Arbitral Awards in Cyprus

The enforcement of foreign arbitral awards in Cyprus is governed by Law 121(1)/2000. Here’s a simplified guide to the process:

Step 1: Application

To file an application to the competent District Court for enforcing a foreign judgment (except in default of appearance cases where an ex-parte application is necessary), one must submit the duly authenticated original award or a certified copy and the original arbitration agreement or a certified copy. Then, the applicant must serve the application to the Respondent without delay.

Step 2: Review by the District Court

The registrar must set the application for a date not exceeding 4 weeks from the filing date. If the respondent appears in the proceedings, he may file a written objection. The court will then set the application for hearing and review it to ensure the award and the arbitration agreement are valid.

Step 3: Recognition and Enforcement

If the court finds no grounds to refuse recognition or enforcement under the New York Convention and the local legislation, it will issue an order recognizing the award as binding and enforce it accordingly. This order is enforceable in the same manner as any other court judgment.

Grounds for Refusing Enforcement

The New York Convention and the Cyprus legislation specify certain grounds for refusing the enforcement of a foreign arbitral award. These include incapacity of the parties, invalidity of the arbitration agreement, lack of proper notice to the party regarding the arbitration proceedings, the award deals with a dispute not contemplated within the terms of the submission to arbitration, the composition of the arbitral tribunal or the procedure was not in accordance with the agreement, the award has not yet become binding, or the subject matter is not capable of settlement by arbitration under Cypriot law.

The Broader Perspective on Enforcement in Cyprus

Beyond the procedures and grounds for refusal, it’s worth considering Cyprus’s broader legal culture and practices related to arbitration. Cyprus, as an EU and Commonwealth member, links intrinsically with the European legal system and common law, and has harmonized its arbitration law with international standards. Cyprus’s pro-arbitration stance is manifested in the local courts’ approach to foreign arbitral awards. The courts are generally reluctant to interfere with arbitration proceedings and tend to interpret the New York Convention in a manner favourable to the enforcement of foreign arbitral awards.


Navigating the enforcement of foreign arbitral awards in Cyprus can be a complex process. Despite this, Cyprus, being a business-friendly and law-abiding member of the international community, has a robust framework in place that generally supports the enforcement of foreign arbitral awards. However, we strongly recommend consulting experienced legal professionals like Connor Legal to guide you through the process and maximize your chances of successful enforcement.

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