Resolving Disputes: Why AIFC Matters

Originally published in The Business Year, Kazakhstan 2026, p. 19.

Resolving Disputes in Kazakhstan: Why AIFC Matters

Businesses inevitably face disputes – whether it is recovering a commercial debt, enforcing contractual obligations, or resolving disagreements between shareholders. When a dispute arises, choosing the right forum is not a procedural detail. It often determines the speed, fairness, and enforceability of the final outcome. For companies operating in Kazakhstan or contracting with Kazakh counterparties, the Astana International Financial Centre (AIFC) Court and the AIFC International Arbitration Centre (IAC) offer distinct advantages that are important to understand and consider in advance.

AIFC Court: international standards with local access

The AIFC Court is staffed by highly respected former judges of the courts of England and Wales. Its Chief Justice, Lord Burnett of Maldon, previously served as the Lord Chief Justice of England and Wales – the highest judicial office in one of the world’s most reputable legal systems. The Court’s bench includes judges with decades of experience handling complex commercial matters.

This level of judicial expertise ensures that proceedings at the AIFC Court are conducted fairly, impartially, and at a consistently high professional standard. Hearings are conducted in English, and the Court is fully equipped to resolve disputes under English law or under any other governing law chosen by the parties. Two foreign companies, for example, may choose to submit their dispute to the AIFC Court even if neither is registered in Kazakhstan.

Compared to Kazakhstan’s state courts, the AIFC Court offers greater procedural flexibility. Judges devote time proportionate to the complexity and value of the case, ensuring that large or technically complex disputes receive the attention they require. The process is efficient: obtaining a final, binding judgment typically takes around six months. While appeals are permitted, they are extremely rare, making AIFC judgments stable and predictable.

Transparency is another important feature. AIFC Court proceedings are public, and judgments are published online. This openness builds trust and predictability—especially for foreign investors assessing the reliability of Kazakhstan as a place to do business.

AIFC International Arbitration Centre: confidentiality and party autonomy

For parties who prefer confidentiality, arbitration at the IAC offers an alternative route. Arbitration requires agreement between the parties and is usually included as a dispute resolution clause at the negotiation stage of a contract.

The IAC is designed to give parties maximum control over the process. Parties may choose:

• the arbitrator (or a panel of arbitrators),
• the language of the proceedings,
• the mode of the hearings (physical or virtual),
• the procedural steps and timetable.

In a three-member tribunal, each party appoints its own arbitrator, which helps ensure that the tribunal understands the commercial background, industry specifics, and business culture of the parties involved.

Enforcement through the AIFC Court: a decisive advantage

One of the most significant – and unique – features of the IAC is the enforcement mechanism. Unlike arbitral awards issued by other institutions in Kazakhstan or abroad, IAC awards undergo recognition and enforcement exclusively through the AIFC Court. They do not go through Kazakhstan’s state courts.

This distinction has major practical consequences. State courts in many jurisdictions, including Kazakhstan, can be unpredictable when dealing with international arbitration, and challenges to enforcement may be serious. By contrast, the AIFC Court has a consistent pro-arbitration approach aligned with international standards. As a result, IAC awards have a significantly higher rate of survival against challenge, as well as easier and more reliable enforcement in Kazakhstan.

This enforcement pathway is one of the strongest reasons why businesses contracting in Kazakhstan increasingly opt for IAC arbitration clauses.

A strategic choice for businesses

For companies operating in Kazakhstan—or dealing with Kazakh counterparties—the choice of forum should be made deliberately at the contract-drafting stage. Selecting the AIFC Court or the IAC provides:

• quicker and more predictable dispute resolution,
• access to world-class judges and arbitrators,
• enforceability that meets international standards, and
• an environment designed for modern commercial disputes.

Given the growing volume of cross-border transactions involving Kazakhstan, understanding and utilising the AIFC mechanisms is a strategic decision that can significantly strengthen a party’s position if a dispute arises.

Source: The Business Year, Kazakhstan 2026, p. 19