Key Developments in International Arbitration for 2026
Here is a list of what to expect and watch out for in international arbitration during 2026:
Legislative developments
The English Arbitration Act 2025 entered into force on 1 August 2025. The provisions apply to arbitrations and arbitration-related court proceedings starting on or after that date. The law made small but important changes to the Arbitration Act 1996, including enhancing arbitrator immunity and clarifying that where the arbitration agreement is silent as to governing law, it will be governed by the law of the seat. In 2026 we may start seeing judgments considering the changes.
The new China Arbitration Law, effective 1 March 2026, modernises China’s framework and aligns it more closely with international standards. It clarifies competence‑competence, interim measures, and court support.
Third‑party funding
Third‑party funding continues to expand across seats and institutions. Ciarb’s ‘Guideline on Third‑Party Funding’ offers practical direction on disclosure, conflicts, confidentiality, privilege, and costs. It is likely to operate as influential soft law and inform procedural orders and counsel practice.
Artificial intelligence in arbitration
AI adoption is accelerating, with a parallel emphasis on responsible use. AAA‑ICDR launched its ‘AI Arbitrator’ function for documents-only construction disputes, and Ciarb’s 2025 ‘Guideline on the Use of AI in Arbitration’ and the VIAC’s ‘Note on AI’ prioritise due process, confidentiality, transparency, and enforceability. Expect more tribunals to address AI expressly in Procedural Order No. 1, covering permitted use cases, disclosure of AI assistance, data security, and human oversight.
ESG‑related disputes
ESG issues continue to feature in both treaty and commercial arbitration, especially in disputes concerning infrastructure, energy and natural resources. References may be made to the counterparty’s sustainability commitments, human rights standards and climate obligations. Expect more claims involving regulatory change, transition risk, and corporate due‑diligence duties.
Tariff‑driven claims
Shifts in global tariff regimes since 2025 have strained cross‑border supply chains and long‑term contracts, leading to delays, cost spikes, and commercial impracticability. With arbitration prevalent in major supply and manufacturing agreements, an increase in arbitrations is likely. Parties should stress‑test hardship, force‑majeure, price‑adjustment, and change‑in‑law provisions, and use early case assessment to separate renegotiation opportunities from inevitable proceedings.
The UAE as a top seat
ICC statistics for 2025 place the UAE among the top five arbitral seats for the first time. We expect the UAE to maintain this position in 2026 as Middle Eastern centres continue to rise, supported by strengthening institutional rules, supportive courts, and a deep bench of arbitrators and counsel.
2026 promises to be another interesting year in international arbitration, and no doubt there will be some surprises in addition to the list above – watch this space!
