Frequently Asked Questions Regarding the Applicable Law and the Referral of Disputes to the AIFC Court or AIFC Arbitration

We regularly advise our clients on various matters related to the Astana International Financial Centre (AIFC).

Among these, clients often raise questions concerning the choice of applicable law and the referral of disputes to the AIFC Court or the AIFC International Arbitration Centre (the “AIFC Arbitration”).

Below are responses to some of the most frequently asked questions:

1. May a contract specify the laws of Kazakhstan as the governing law while providing that disputes shall be resolved by the AIFC Court or the AIFC Arbitration?

Answer: Yes. The parties may, by mutual agreement, designate the laws of Kazakhstan (or the laws of another jurisdiction) as the governing law of the contract, include a dispute resolution clause referring disputes to the AIFC Court or the AIFC Arbitration, and subsequently refer any dispute to the selected forum.

2. If so, which law will the AIFC Court or the AIFC Arbitration apply when resolving disputes?

Answer: If the parties have selected the laws of Kazakhstan as the governing law, the AIFC Court or the AIFC Arbitration will resolve the dispute in accordance with the applicable laws of Kazakhstan.

At the same time, parties are free to choose the AIFC Court or the AIFC Arbitration irrespective of the governing law applicable to the contract. Parties may designate any arbitral forum at their discretion, including the AIFC Court or the AIFC Arbitration. The AIFC Court and the AIFC Arbitration consider disputes regardless of which governing law the parties have chosen for their contract.

Under the AIFC rules, the AIFC Court has jurisdiction over civil and commercial disputes arising from transactions, contracts, and agreements (as defined under AIFC law). The AIFC Court does not have jurisdiction over criminal or administrative matters.

Of course, each case must be assessed individually when determining the applicable law and selecting a court or arbitral forum, taking into account the parties’ respective risks and interests.

If you have any questions, we would be pleased to assist you.