Arbitration is an instrument of alternative dispute resolution. Arbitral jurisdiction is established by the parties to a contract agreeing to submit their disputes arising from their contractual relationship to an arbitral tribunal for final assessment and decision ("arbitral award"), thereby opting out of the jurisdiction of state courts.

The concept paper describes areas of application of arbitration, distinction between commercial arbitration and investment arbitration, and advantages of (international) arbitration and gives an overview of arbitration in Germany.