In today’s global economy, competing for prospective businesses not only looks at factors like political stability, tax policy, labor force, and infrastructure in their calculations to invest, but also the ability to resolve commercial disputes efficiently, fairly, and affordably. Reason enough why the practice of arbitration and mediation has become the preferred method of resolving business disputes outside of the traditional and time-consuming court system. For a small country like Armenia, establishing a world-class arbitration and mediation center could be a game changer, not only for its economy but also its standing in the world.
In 2019, the concept of alternative dispute resolution (ADR) in Armenia was proposed to the Armenian government by AGBU as part of its longstanding nation-building efforts to foster socio-economic development in the homeland. Fortunately, the guiding force behind the proposal was then-AGBU president Berge Setrakian, an international corporate attorney with vast experience in international litigation, arbitration, and corporate affairs. As a senior partner at DLA Piper, one of the world’s elite law firms, Setrakian recognized that an ADR center in Armenia had the potential to enhance its reputation as a good place to do business and a smart place to resolve disputes. “Right now, the laws of Armenia are still relatively primitive, as they are vestiges of the Soviet regime,” says Setrakian. “Most of the people do not trust these laws, and amending a whole series of them takes time. However, if a business could find a forum that is fast and neutral like ADR, it can circumvent the pitfalls, delays and costs of the courts.”
For a small country like Armenia, establishing a world-class arbitration and mediation center could be a game changer, not only for its economy but also for its standing in the world.
Setrakian explained that, in Armenia, a credible arbitration and mediation institution operating under globally recognized rules and standards would reassure foreign investors that any out-of-court dispute can be handled professionally and impartially. “Another plus is that you can apply Armenian law or any other law to your case. And you can hold the proceedings in Armenia or outside Armenia. You can even conduct the process in Armenian, English, French, practically any language you choose. Best of all, we have access to the top talents and experts in place from all our connections in Diasporan and non-Armenian circles. They are ready and willing to serve as arbitrators or legal representatives, which is essential to the credibility factor.”
Setrakian goes on to say that if Armenia were to host a respected arbitration and mediation center—modeled after the most advanced world-class centers such as New York, London, Zurich, Washington D.C.—it could attract not only local cases but also disputes arising between foreign companies doing business in the region. He refers to Singapore and Switzerland, two cities that successfully transformed themselves into global arbitration hubs that generate significant legal, financial, and hospitality revenues.
He also mentioned that an ADR center in Armenia would help create demand for highly trained lawyers, mediators, and legal scholars, stimulate the development of modern commercial law, and encourage professional education in negotiation and dispute management. Local businesses, too, would gain access to more efficient ways to resolve conflicts. From an economic standpoint, it would bring tangible benefits as visiting lawyers, expert witnesses, and corporate executives spend money on hotels, restaurants, and conference facilities. Over time, this can build a niche service economy around legal tourism, in the same vein as Vienna and Dubai that benefit from their arbitration centers.
In 2023, the Armenian government made alternative dispute resolution a reform priority, paving the way for the establishment of the Arbitration and Mediation Center of Armenia (AMCA) as an independent non-profit foundation to bring international best practices to Armenia’s legal system. The AMCA is formally founded by AGBU, the Armenian Bar Association (ABA), which has been very active in promoting and recruiting experts from its network of members, and the Center for Legislation Development of the Ministry of Justice of Armenia.
AMCA Director Lilit Petrosyan understands there is a long road ahead to Armenia gaining the prestige of the more advanced and proven ADR hubs, acknowledging that a persistent challenge for Armenia’s legal system is the widespread perception, warranted or not, that it lacks public trust. However, she is optimistic that Armenian society in general and the Judiciary in particular will embrace the AMCA alternative. Petrosyan points to countries with developed arbitration centers like France and Sweden as being perceived as safer, more credible places for business. Thus having such a center in Armenia increases confidence in the entire economy.
Petrosyan also believes ADR is ideal for complicated and niche sectors such as Armenia’s booming tech field. “In arbitration, you have flexibility. You can choose the applicable law, language, your arbitrator, who is specialised in the field of your dispute, such as tech law. Judges cannot be expected to understand the intricacies of software licensing or technology, while foreign firms would need to rely on translators to operate in Armenian courts. Instead of a judge, the parties can appoint a mutually agreed-upon expert in the relevant field and preferred language to oversee negotiations and settle the dispute,” she explains.
Although AMCA is still a work in progress, it has already handled arbitration cases in English and Russian, saving the parties significant translation costs. Arbitration awards also carry international weight, as the United Nations’ New York Convention, to which Armenia is a signatory along with 172 other states, requires member countries to recognize and enforce awards issued within other signatory states.
The best way for AMCA to fulfill its ambitious mission is to build a sterling reputation for integrity and let the caliber of its work, the quality of its arbitrators, and the efficiency of the process make the case for us.
According to Kristine Martirosyan, AGBU Armenia’s legal advisor, “AMCA has been a global effort right from the start, with vital expertise provided by the U.S.-based Armenian Bar Association and lawyers from the Diaspora. Moreover, the Center’s list of arbitrators is public, so anyone can see what their qualifications are. Of the 180 arbitration awards issued so far, not a single case has been annulled by the courts. In the short-term, it is seeking to expand and strengthen arbitration and mediation across Armenia, making these processes trusted, accessible, and effective.”
These legal alternatives are also becoming more common in family dispute resolution, with Armenia this year making mediation mandatory before using the court system. Certain small civil claims no longer go to court at all, using arbitration or notaries instead. “The biggest challenge is awareness,” says Petrosyan. “People still don’t fully understand what arbitration and mediation are. These reforms are helping people see how they work in practice, and, once people experience it, they will prefer it. In mediation, people will understand that mediation isn’t about winning; it’s about finding a solution that works for both sides.”
In September 2025, AMCA reflected its international aspirations by hosting its third annual Armenian Arbitration Week, drawing over 500 participants from more than 35 countries. By raising AMCA’s profile among international practitioners, AMCA seeks to be the first choice among foreigners without ties to Armenia or the Diaspora.
Setrakian summed it up by saying, “The best way for AMCA to fulfill its ambitious mission is to build a sterling reputation for integrity and let the caliber of its work, the quality of its arbitrators, and the efficiency of the process make the case for us.”
