The Presidential Circular No. 2026/3, issued by the Presidency, was published in the Official Gazette dated 17 April 2026 and numbered 33227. The Circular aims to promote the use of the OIC Arbitration Centre (“OICAC”), established in Istanbul, as an international dispute resolution mechanism.
Regulation Subject to the Decision
Within the scope of the Circular, the legal status and field of activity of the OICAC are set out. In this context, it is stated that the Centre is the first arbitration institution established in Türkiye under an international agreement (“Agreement”), pursuant to the Presidential Decision dated 24 January 2020 approving the Agreement between the Government of the Republic of Türkiye and the Islamic Chamber of Commerce, Industry and Agriculture on the Establishment of the OIC Arbitration Centre in Türkiye.
An examination of the Agreement shows that the OICAC is a hybrid structure established within and as an affiliate of the Islamic Chamber of Commerce, Industry and Agriculture (“ICCIA”), but operating with the institutional and financial support of Türkiye as the host country. Indeed, the statute clearly states that the Centre is an affiliate of the ICCIA; however, Türkiye’s institutional representation is decisive in its governance structure.
It is stipulated that some members of the Board of Trustees are directly appointed by the Union of Chambers and Commodity Exchanges of Türkiye (“TOBB”), and that TOBB assumes administrative custodianship until the establishment of the Secretariat.
This indicates that the OICAC is not merely an international initiative, but also an arbitration infrastructure structured and supported through Türkiye’s national commercial institutional framework.
On the other hand, the statute provides that the Centre’s purpose is to resolve commercial and investment disputes between member states and related parties through arbitration and alternative dispute resolution methods, and to develop dispute resolution capacity in member countries. This institutional design, similar to other regional arbitration centres, reflects a model combining organization-based legitimacy with host country-based operational capacity.
In this context, the OICAC serves to resolve commercial and investment disputes arising between the member states of the Organisation of Islamic Cooperation (“OIC”) and their natural and legal persons through arbitration or alternative dispute resolution methods.
It is stated that the Centre operates through independent, impartial and expert professionals and provides a negotiation and resolution environment in line with international standards under modern arbitration and mediation rules.
In addition, it is emphasized that the Centre’s functions are not limited to dispute resolution; it also undertakes roles such as the appointment of arbitrators and mediators, provision of secretariat services, and conducting training and guidance activities related to arbitration practices. www.oa-ao.com
Approach Introduced by the Circular
The Circular states that, in order for parties to benefit from the arbitration and alternative dispute resolution services offered by the OICAC, it is sufficient for them to express a clear intention in their contracts or dispute agreements to that effect.
In this regard, it is emphasized that, particularly in national and international contracts to which public institutions and organizations are parties, the OICAC should also be considered as an alternative when evaluating arbitration, and relevant institutions are requested to be informed accordingly.
Evaluation and Conclusion
The Circular aims to position the OICAC as a more effective dispute resolution platform in international commercial and investment disputes and provides clear guidance for its consideration, especially in contracts involving public institutions.
Undoubtedly, the Circular constitutes a policy document that strengthens the position of the OICAC in line with Istanbul’s goal of becoming an international arbitration centre and promotes its use among public authorities. Furthermore, considering the ongoing political, commercial and economic uncertainties in the regions where some OIC member states are located, the publication of this Circular is expected to provide significant benefits.
On the other hand, the approach set out in the Circular is likely to lead to the OICAC being considered more frequently as an alternative institutional structure when determining the place and institution of arbitration, particularly in public contracts.
However, the most essential condition for becoming a widely used arbitration centre—both regionally and in significant disputes—is the mutual consent of the parties. In this regard, for the OICAC to become attractive, it would be beneficial not only for public institutions to propose it as an arbitration clause in contracts with contractors or counterparties, but also for the Centre to establish a presence in various fields and specialized types of disputes.