BOSNIA & HERZEGOVINA Trends and Developments Contributed by: Miodrag Jevtić, Gecić Law
tic jurisdiction over real estate matters. The Supreme Court upheld this decision. In domestic arbitration, a 2016 case, Bamcard d.d. Sarajevo v Verisoft , resulted in the Sarajevo Cantonal Court annulling an arbitral award issued under the FTC BiH rules. The court found that the arbitral tribunal had relied on evidence not presented during the hearing, violating procedural fairness. While the court’s reason - ing was narrow, the decision contributed to a broader perception of judicial overreach. Enforcement of ICSID awards, though formally uncon - troversial under Bosnia and Herzegovina’s interna - tional obligations, faces practical hurdles. Domes - tic courts lack consistent experience in processing enforcement requests, and no specialised chamber or judiciary is trained in international arbitration stand - ards. The enforcement of the Viaduct award is a cru - cial test for the system’s credibility. Educational Infrastructure and Community Initiatives The future of arbitration in Bosnia and Herzegovina depends heavily on capacity building and education. The legal education system offers limited formal train - ing in arbitration. However, emerging efforts are being made to close this gap. The University of Sarajevo’s Faculty of Law offers a master’s programme with modules dedicated to inter - national arbitration and dispute resolution. In addition, the faculty regularly fields teams for the Willem C. Vis International Commercial Arbitration Moot, providing practical exposure to arbitration procedures and argu - mentation. The NGO Arbitri has played a central role in promoting arbitration awareness. It organises the annual Saraje - vo Arbitration Days, bringing together local practition - ers, international experts and students. The organisa - tion also collaborates with both entities’ Judicial and Prosecutorial Training Centres to offer continuing legal education for judges and lawyers. Despite these positive developments, a systemic approach to arbitration education remains lacking. Very few practising lawyers in Bosnia and Herzegovina
specialise in arbitration, and commercial awareness among judges remains uneven. Language barriers, a preference for litigation, and limited public trust in arbitration processes all contribute to the slow growth of a domestic arbitration culture. Institutional and Legislative Reform: A Necessity, Not an Option The fragmented legislative framework continues to be a significant barrier to the development of arbitration. While all three CPAs are modeled on the UNCITRAL Model Law, provisions allowing for the easy termi - nation of arbitration agreements severely undermine party autonomy and procedural predictability. Legal scholars and practitioners have long called for adopt - ing a unified state-level arbitration law. However, Bos - nia and Herzegovina’s constitutional structure, divid - ing competencies between state and entity levels, has made such reform politically challenging. Nevertheless, momentum is building for incremental change. The 2025 reform of the FTC BiH’s arbitration rules is a step in the right direction. Additional efforts are needed to: • remove Articles 450 and 451 of the CPAs, or at least significantly limit their application; • introduce specialised training for judges dealing with arbitral enforcement and annulment; • create a centralised arbitration registry to improve transparency and data collection; and • encourage more companies to include arbitration clauses in commercial contracts Conclusion: The Road Ahead Bosnia and Herzegovina stands at a pivotal juncture in the evolution of its arbitration framework. The coun - try’s repeated exposure to investor-state disputes has not only resulted in significant financial liabilities, some exceeding tens of millions of euros, but has also drawn critical international attention to the structural weaknesses in its legal and regulatory systems. Simul - taneously, the domestic arbitration landscape remains underdeveloped, fragmented and vastly underutilised, despite longstanding membership in key international conventions and recent institutional efforts at reform.
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