Choice of Governing law
The data from the ICC over the past three years confirms the preference for English and Welsh governing law in international arbitration. A steady and consistent use of English law has been reported, with 125 cases governed by it in 2024, maintaining its primary position. In contrast, the use of U.S. law has seen a gradual decrease, from 81 cases in 2023 to 69 in 2024 and Swiss law, which featured prominently in 2023 with 83 cases, fell from the top ranks in 2024 after recording 53 cases in 2022. This comparative trend reflects a global appeal of the English legal system’s respect for party autonomy, especially for parties that seek predictability in decisions. Party autonomy refers to the freedom of contracting parties to determine the terms of their agreement, which is fostered by an objective interpretation of contracts by the English courts. By giving priority to the express terms of the contract and avoiding reliance on extrinsic evidence, the choice of English and Welsh governing law is more attractive to international parties for its legal certainty and protection of agreed terms.
Seat Choice
There has also been a slight shift in seat selection within ICC arbitrations in favour of the United Kingdom. In 2024, the UK overtook France as the most selected seat, with 96 cases compared to France’s 91. This is a reversal of the previous year where France led with 99 cases against the UK’s 85. This upward trajectory continues from 2022, when the UK was selected in 74 cases. Since the introduction of the Arbitration Act 1996, the UK has established a reputation for judicial non-interference. English judges generally refrain from intervening in the conduct of arbitral proceedings and are supportive in enforcing final awards, creating a legal environment that reinforces the finality and integrity of arbitration.
Lengths and delays of Proceedings
The average duration of ICC arbitration proceedings has remained relatively stable over the past three years, typically concluding within 26 to 27 months. In 2024, the average duration was 26 months, consistent with 2022 and slightly improved from 27 months in 2023. However, data on procedural delays indicates some growing inefficiencies. In 2024, 75 cases experienced delays exceeding two months, compared to 49 cases in 2023 and 29 cases in 2022, showing an upward trend in longer delays despite the stable overall duration.
Despite the rising number of delays there has been reform enacted to streamline the arbitral process. This is exhibited by the ICC’s 2021 Rules, which introduced stricter time limits for arbitrators to render awards, including financial penalties such as reduced fees if deadlines are not adhered to. While these measures aim to encourage efficiency and meet procedural deadlines, they appear to have limited de facto impact.
A key factor that could be contributing to the worsening of delays, despite the changes in promoting efficiency, is the phenomenon of due process paranoia. This occurs when tribunals adopt an overly cautious approach to avoid challenges to final awards based on procedural unfairness. This has led to arbitrators granting repeated procedural requests from parties, particularly at late stages, which undermines both efficiency and equal treatment. As seen in cases like Jaguar Energy and Anwar Siraj, courts generally support tribunals’ procedural decisions and reject weak due process challenges. However, the inflated perception of risk continues to affect case management, enabling actions that prolong proceedings and increase delay.
Changes in Asian regional distribution
The ICC data also reveals subtle changes in the regional distribution of parties involved in arbitrations, including a gradual decline in participation from Central and West Asia. In 2022, parties from this region accounted for 11% of the caseload, rising to 12.7% in 2023 before falling to 10% in 2024. This downward trend may reflect the development and appeal of regional arbitration centres, such as the Dubai International Arbitration Centre (“DIAC”) and the Qatar International Court and Dispute Resolution Centre, which offer geographically closer and often more cost-effective alternatives. Conversely, North and West European parties continued to dominate, rising from 28.8% in 2023 to 30.2% in 2024. These figures suggest a rebalancing of global arbitration activity, with European parties consolidating their presence and some Asian and Middle Eastern parties exploring arbitration locally.
Future changes
Looking to the future, English law will continue to dominate arbitration proceedings. As for seat preference, the recent enactment of the Arbitration Act 2025 introduces a series of targeted reforms that modernise and enhance the efficiency of the arbitration process in England. Tribunals have been given new powers to summarily dispose of claims; the Act has provided clarification of court authority over third parties, codification of emergency arbitrator enforcement, and stricter procedures for challenging awards. These reforms, in combination with England’s commercial jurisprudence and pro-arbitration judiciary will likely further increase the appeal of English law and London as the seat of arbitration.
Comparative Analysis
HKIAC
The 2024 statistics reveal that the ICC maintains a broader global presence compared to HKIAC. Parties to ICC arbitrations came from 145 countries, whereas HKIAC involved parties from 34 jurisdictions, primarily from Asia and offshore hubs such as Mainland China, Hong Kong, and the Cayman Islands. While both institutions conduct most arbitrations in English, HKIAC maintains a significant portion in Chinese (15.9%) or bilingually (4.3%), reflecting its regional orientation.
The choice of governing law further illustrates the difference between the HKIAC’s more local appeal in comparison to the global attractiveness of the ICC. In 2024, ICC arbitrations involved over 100 different legal systems, with English law as the dominant choice. HKIAC cases, while involving 15 governing laws, primarily applied Hong Kong law, followed by English and Chinese law, reinforcing its alignment with the Greater China commercial bubble. Overall, the ICC shows greater international diversity, whereas HKIAC displays its appeal for tackling Asia-based party disputes.
LCIA
English and Welsh law continues to dominate as the governing law in both LCIA and ICC arbitrations. However, recent statistical reports suggest that there has been a decline in its choice. At the LCIA, the choice of English law has gradually declined: from 85% of arbitrations in 2022 to 83% in 2023, and down to 78% in 2024. Likewise, English law was chosen in 125 (15%) new cases for ICC proceedings in 2024, this represents a decline from 131 cases in 2023. This drop may indicate that while London remains a preferred seat, parties are increasingly opting for other governing law provisions.
Conclusion
The 2024 data confirms that English law and London remain central to international arbitration, despite minor declines in usage. Their continued dominance stems from the legal consistency, party autonomy, and enforcement-friendly environment they offer. The Arbitration Act 2025 is expected to strengthen this position further by modernising English arbitration and improving procedural efficiency.
While institutions like HKIAC and DIAC are increasing in popularity regionally, the ICC maintains a broader international presence, accommodating a wider range of legal systems and parties. The LCIA’s gradual diversification in governing law choices signals growing openness but still reflects the appeal of English law.
Overall, the trends indicate that jurisdictions offering legal clarity, efficient procedures, and judicial support will remain at the forefront of global arbitration. England’s proactive legal reforms and arbitration-friendly stance ensure it continues to lead in this evolving landscape.
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