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Abstract

This paper explores the rapid growth of international commercial arbitration (ICA) as the primary method of resolving cross-border business disputes. It traces the historical evolution of arbitration, highlighting how institutions like the ICC, LCIA, and SIAC have shaped modern practices. The research examines why businesses increasingly favor arbitration over litigation, emphasizing factors such as party autonomy, confidentiality, flexibility, and the enforceability of arbitral awards under the New York Convention. At the same time, the paper critically analyzes the drawbacks and challenges inherent in ICA, including difficulties with enforcement, limited appeal rights, procedural opacity, and complexities in multi-party disputes. Emerging trends such as mass arbitration, climate-related claims, arbitration involving crypto assets, and the growing role of third-party funding are also discussed, illustrating how global business and technological change are reshaping the arbitration landscape. The study concludes that while ICA offers significant benefits—especially speed, neutrality, and expertise—it requires procedural reforms, greater transparency, and adaptation to new commercial realities to remain a reliable dispute resolution mechanism for international commerce.