LUXEMBOURG Law and Practice Contributed by: Emilie Waty and Kloris Vjerdha, KLEYR_GRASSO
1. General 1.1 Prevalence of Arbitration
border transactions and its regulatory sophistication in such matters. Specifically, Luxembourg is the largest investment fund centre in Europe, with net assets under supervi - sion of over EUR6,731.3 billion. The abundance of such funds inevitably triggers disputes, and arbitration is therefore positioned as an attractive mechanism of alternative dispute resolution due to its enforceability, privacy and flexibility. 1.3 Arbitration Institutions The Arbitration Center of the Luxembourg Chamber of Commerce, also known as the Luxembourg Arbitra - tion Center (LAC), was established in 1987 and serves as the principal arbitral institution in Luxembourg for the administration and resolution of domestic and international disputes. The LAC is managed by its Council and assisted in its work by its Secretariat. The LAC operates pursuant to its own set of procedur - al rules, namely the Rules of Arbitration of the Luxem - bourg Chamber of Commerce (the “LAC Rules”). The LAC Rules, which draw inspiration from the arbitration rules of the International Chamber of Commerce (ICC), were most recently updated effective from 1 October 2025, and are available on its official website in Eng - lish as well as in French. The LAC’s 2025 revision of the rules is the first since the modernisation of the Luxembourg Arbitration Law and introduces significant new features designed to streamline arbitral proceedings, notably by placing greater emphasis on electronic communications and broadening the use of videoconferencing for arbitral hearings. In addition to its primary function of administering arbitration proceedings, the LAC is also committed to promoting arbitration in Luxembourg and provides support to regional arbitration associations such as the Think Tank for Arbitration and the Luxembourg Arbitration Association (LAA), a non-profit organisa - tion dedicated to the promotion and development of arbitration practice in Luxembourg founded in 1996. Apart from the LAC, prominent bodies such as the ICC, the London Court of International Arbitration
Located at the heart of Europe and armed with a strong economy that attracts global investors and pushes companies to establish their corporate pres - ence in its territory, Luxembourg presents itself as a highly favourable jurisdiction for international arbitra - tion. Particularly, following the introduction of the Law of 19 April 2023 (the “Luxembourg Arbitration Law”) amending Title I of Book III of the New Code of Civil Procedure (NCCP), which effects a large-scale reform of Luxembourg’s legal framework for domestic as well as international arbitration and further aims to improve flexibility, speediness and confidentiality, Luxembourg has effectively enhanced its attractiveness as a seat of international arbitration. Similarly to most jurisdictions, traditional litigation before courts remains the predominant recourse when a dispute arises in Luxembourg. However, over the past several years, the number of arbitration cases has increased by over 60%, of which over 85% per - tain to international arbitration matters where at least one party is located outside of Luxembourg. Given Luxembourg’s standing as an international forum, parties commonly resort to it for the enforce - ment of arbitral awards. With its continuous efforts to promote itself as an arbitration-friendly jurisdic - tion, Luxembourg is increasingly serving as the seat for arbitral proceedings. 1.2 Key Industries There are ongoing efforts to promote greater reliance on arbitration proceedings for disputes in the financial and banking sectors in Luxembourg. In recent years, there has been a marked increase in the number of contracts incorporating arbitration clauses and, as a result, international arbitration relating to investment fund disputes has become an indisputable trend. This is largely attributable to Luxembourg’s expanding role as a global hub for the restructuring and manage - ment of such funds, its high concentration of cross-
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