CYPRUS Trends and Developments Contributed by: Menelaos Kyprianou, Constantina Zantira, Andreas Lytras and Eleana Poulladou, Michael Kyprianou & Co LLC
Additionally, these amendments further strengthen the court’s ability to impose cost sanctions for non- compliance, aiming to reduce procedural complexity and promote commercially pragmatic outcomes. From a strategic perspective, parties must now con- sider ADR options much earlier in the life cycle of a dispute. This includes evaluating whether arbitration clauses may apply, whether mediation could assist in narrowing the issues between the parties, or whether other consensual mechanisms may provide a faster and more cost-effective route to resolution. As a result, arbitration and other forms of ADR are likely to become more closely integrated into the broader dispute resolution framework. Amendments to the International Commercial Arbitration Law 1987, Law 101/1987 The amendments to the Law 101/1987 in 2024 cor- respond with the trend of modernising the arbitra- tion framework to ensure it remains an effective and attractive dispute resolution mechanism in Cyprus, by further aligning it with contemporary international arbitration standards based on the UNCITRAL Model Law on International Commercial Arbitration. In particular, the reforms introduce clearer provisions regarding the powers of arbitral tribunals, interim measures and their recognition and enforcement, and the role of the Cyprus courts in supporting arbi- tration proceedings. The amendments also promote greater efficiency by clarifying procedural aspects relating to jurisdictional challenges, tribunal author- ity and enforcement mechanisms, thereby reducing uncertainty for parties choosing Cyprus as a seat of arbitration. A draft bill for a new International Commercial Arbitra- tion Law is currently under review with the intention of replacing Law 101/1987 in its entirety. The proposed legislation is expected to fully reflect the structure and principles of the UNCITRAL Model Law on Interna- tional Commercial Arbitration (as revised) and intro- duce a more comprehensive and modern statutory framework governing the conduct of international arbitration proceedings in Cyprus.
Overall, these developments will strengthen the cred- ibility of arbitration in Cyprus and are expected to fur- ther enhance the country’s attractiveness as a venue for resolving international commercial disputes. Interim orders Interim measures may also be sought in aid of for- eign arbitration proceedings, before such proceed- ings are filed, pending such proceedings or after their commencement, pursuant to the Law 101/1987 and Section 32 of the Courts of Justice Law 1960, also recently amended in 2023. Section 32 now expressly provides that Cyprus courts have jurisdiction to hear any application for interim relief at any time – even before the filing of the sub- stantive proceedings and also after the issuance of a judgment – in relation to court proceedings and arbi- trations that have been concluded, are existing or are anticipated, within or outside Cyprus. Further, the new Rules have specific provisions ena- bling parties to obtain freestanding interim measures (“Black Swan” freestanding orders) before the sub- stantive proceedings are commenced and also after the issuance of judgment. Conclusion As summarised above, Cyprus has introduced a range of institutional and legislative reforms designed to reinforce the rule of law and enhance its attractive- ness as an international business hub. Cyprus is posi- tioning itself as a credible and competitive jurisdic- tion, adopting international trends in a strategic and forward-looking manner.
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