Arbitration is one of the most effective methods of resolving commercial and investment disputes. At the SCC Arbitration Institute, we provide a trusted, neutral, and efficient forum where parties can settle disagreements outside the courts. For over a century, the SCC has been at the forefront of international arbitration, chosen by businesses, states, and investors across the globe.
What is arbitration?
Arbitration is a private and legally binding method of dispute resolution in which the parties submit their case to one or more independent arbitrators. Unlike court litigation, arbitration allows parties to tailor the process to their needs, select arbitrators with the right expertise, and ensure confidentiality of sensitive matters.
An arbitral award is final and enforceable in more than 170 jurisdictions worldwide under the New York Convention. This global enforceability makes arbitration a cornerstone of international commerce and investment.
Why choose SCC arbitration? Key benefits:
The SCC Arbitration Institute is consistently ranked among the leading arbitration institutions worldwide. Each year, parties from more than 40 countries select the SCC to resolve their disputes. Our reputation rests on neutrality, efficiency, and a proven track record of administering complex, cross-border cases.
Court proceedings are a slower option and they are not confidential – unlike arbitration, where both the hearing and the award are kept confidential. Arbitration also gives the parties a great opportunity to participate and influence the process.
Confidentiality
All SCC proceedings are conducted in private. This protects sensitive business information, preserves commercial relationships, and ensures discretion for parties and arbitrators alike.
Expertise and neutrality
Parties benefit from impartial case administration by the SCC Secretariat and from the appointment of arbitrators with proven expertise in international law and commerce. Sweden’s long-standing tradition of neutrality enhances the credibility of SCC arbitration as a reliable forum for parties from diverse jurisdictions.
Enforceability of awards
Awards rendered under the SCC Rules are final and legally binding. They are enforceable in over 160 countries, giving businesses and investors certainty and security in global trade and investment.
Flexibility and efficiency
The SCC offers both regular and expedited procedures, enabling parties to resolve disputes quickly and proportionately. On average, cases are concluded within 12–18 months, while expedited arbitrations may be completed in as little as six months.
Cost-effective dispute resolution
SCC arbitration is designed to be efficient, reducing the time and resources required to reach a resolution. Our transparent schedule of fees ensures predictability, while the SCC’s streamlined procedures help contain overall legal costs.
Stockholm: Neutral and trusted jurisdiction
Stockholm provides an ideal arbitration seat with numerous advantages:
Neutral jurisdiction with no bias towards any particular legal system
Modern arbitration law supporting arbitral autonomy and minimal court intervention
Excellent infrastructure with state-of-the-art hearing facilities
Convenient location between East and West, accessible for international parties
Strong rule of law and experienced judiciary supporting arbitration
Sweden’s arbitration-friendly legal environment ensures that arbitral proceedings receive appropriate judicial support when needed whilst maintaining arbitral independence.
The SCC arbitration process: How it works
The SCC Rules of Arbitration provide a modern and flexible framework for resolving disputes:
1. Arbitration agreement and initiation
The arbitration process begins with a valid arbitration agreement, typically included in the underlying commercial contract. When disputes arise, any party may initiate proceedings by:
Filing a request for arbitration with the SCC
Paying the required registration fee
Serving the request on the opposing party
Providing relevant documentation and evidence
The SCC reviews the request to confirm jurisdiction and procedural compliance before formally commencing the arbitration.
2. Arbitral tribunal constitution
Arbitrator selection is crucial for effective dispute resolution:
Sole arbitrator for smaller or less complex disputes
Three-member tribunal for larger or more complex matters
Party appointment of arbitrators with relevant expertise
SCC confirmation ensuring arbitrator independence and qualifications
The SCC maintains a diverse roster of qualified arbitrators whilst allowing parties significant input in the selection process.
3. Case management and procedure
Once constituted, the arbitral tribunal manages the proceedings:
Procedural orders establishing timetables and rules
Written submissions including statements of case and evidence
Document disclosure as appropriate to the dispute
Witness and expert evidence presented through written statements and oral testimony
The tribunal ensures fair and efficient proceedings whilst maintaining procedural flexibility.
4. Hearings and deliberations
Oral hearings provide opportunities for:
Opening statements outlining each party’s case
Witness examination including cross-examination
Expert testimony on technical or specialised matters
Closing arguments summarising positions and evidence
Following hearings, the tribunal deliberates privately before issuing its decision.
5. Award and enforcement
The arbitration concludes with a final arbitral award that:
Resolves all disputed issues with binding effect
Cannot be appealed on substantive grounds
Is immediately enforceable in over 160 countries
Includes cost allocation between the parties
The SCC assists parties with award enforcement procedures when necessary.
Types of arbitration at the SCC
The SCC offers a range of procedures designed to meet the needs of commercial parties, investors, and states.
Commercial arbitration
Used for business disputes arising under contracts, joint ventures, trade, or investment agreements.
Expedited arbitration
A streamlined procedure with shorter time limits and reduced costs, ideal for disputes requiring swift resolution.
The SCC is one of the most frequently chosen institutions for investor-state disputes under bilateral and multilateral investment treaties, including the Energy Charter Treaty.
When parties prefer to use the UNCITRAL Arbitration Rules, the SCC can administer these arbitrations as well as act as appointing authority under the UNCITRAL Arbitration Rules.
Arbitral awards are final and binding with very limited grounds for challenge. Unlike court judgements, awards cannot be appealed on substantive grounds such as disagreement with the arbitrators’ legal or factual conclusions.
Limited challenge grounds include:
Lack of valid arbitration agreement
Procedural irregularities affecting due process
Arbitrator misconduct or bias
Awards exceeding the scope of submission
Success rates for challenges are extremely low, typically under 5%, ensuring finality and enforceability.
How long does SCC arbitration take?
Most SCC arbitrations conclude within 6-12 months, significantly faster than court litigation. Factors affecting duration include:
Case complexity and number of issues
Amount of evidence requiring review
Number of witnesses and experts
Arbitrator and party availability for hearings
Procedural choices made by parties and tribunal
Expedited procedures can deliver awards within 3-6 months, whilst complex international disputes may require 12-18 months
How much does SCC arbitration cost?
Fees are based on the amount in dispute and can be calculated using the SCC Cost Calculator. These fees cover the arbitrators’ remuneration and the SCC’s administrative costs. The largest portion of overall expenses often arises from legal representation, but the SCC’s efficient procedures help to reduce these costs.
Is arbitration confidential?
Yes, SCC arbitration is strictly confidential.Confidentiality covers:
All proceedings including hearings and deliberations
Documentary evidence and written submissions
Arbitral awards and procedural decisions
Settlement discussions and negotiations
Exceptions to confidentiality:
Disclosure required by law in certain jurisdictions
Enforcement proceedings where award disclosure may be necessary
Regulatory reporting requirements in specific industries
Parties may agree to additional confidentiality measures or limited disclosure for specific purposes.
Can parties choose their arbitrators?
In most cases, yes. Parties may nominate their arbitrators, subject to confirmation by the SCC, ensuring both independence and impartiality.
Do I need an arbitration clause in my contract?
Yes, a valid arbitration agreement is essential for SCC jurisdiction. Best practice includes:
Pre-dispute arbitration clauses in commercial contracts specifying:
