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  5. Commercial Arbitration in Georgia

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Commercial Arbitration

Commercial Arbitration in Georgia

Can any dispute be referred to arbitration?

No. The law gives arbitration only a property dispute of a private character, founded on the equality of the persons involved, which the parties are able to settle between themselves, and a dispute connected with a public-private partnership contract (Article 1). A dispute outside this framework cannot be referred to arbitration.

What happens if the other party still goes to court?

The court is obliged, upon receiving notice that arbitral proceedings have begun, to refuse the claim or discontinue the proceedings — unless it finds the arbitration agreement null and void, lapsed or incapable of being performed. As a party to the arbitration you must notify the court that arbitration has begun (Article 9).

How many arbitrators decide the dispute?

The parties determine the number and the manner of appointment. If an even number is agreed, the arbitrators already appointed must appoint one more within 10 days; if the number was never determined, the arbitration is composed of three arbitrators (Article 10).

Can I replace the arbitrator I appointed?

No — unilateral replacement by a party is not permitted (Article 14). A mandate ends on the arbitrator’s own request or by agreement of the parties; failing agreement, the court examines the matter if approached within 30 days and renders a final, non-appealable decision within 14 days.

Are arbitral hearings public?

By default they are closed: documents and evidence are not published and must not be used in other court or administrative proceedings, and keeping the information received during the hearing confidential is a direct obligation of the arbitrator and of every participant (Article 32).

9 min·1 Sep 2026

What commercial arbitration is — and what the law governs

Commercial arbitration is a private, contract-based method of resolving disputes: instead of submitting a conflict to the state courts, the parties themselves determine who will hear their case — one or several arbitrators. The Georgian Law on Arbitration establishes the rules for the creation of arbitration, the conduct of arbitral proceedings, the arbitral award, and also the recognition and enforcement of an arbitral award rendered outside Georgia (Article 1). For a business this means that a properly drafted arbitration clause builds, in advance, the entire mechanism through which a future conflict will be resolved: you can determine the applicable rules, the language, the place and the people who will make the decision.

Updated: 10 Oct 2026