In order to replace Hungarian Act 1994 of LXXI on Arbitration, a new act on arbitration has been enacted by the Parliament on 30 May 2017. According to the explanatory memorandum, the new act is intended to create an attractive investment environment for the foreign companies. It is also beneficial for the Hungarian companies, as quicker and more professional form of arbitration could encourage the foreign companies to initiate the arbitration procedure in Hungary, which would be more cost-efficient for Hungarian companies.
The most important innovation of the new act is that it establishes the exclusive competence of Permanent Court of Arbitration operating at the Hungarian Chamber of Commerce and Industry in all commercial matters which fall within the competence of an arbitration court in Hungary. The new act contains provisions on the election procedure and the rights of the members of the management body of the Permanent Court of Arbitration. Besides this court, with the exception of the Sport Permanent Court of Arbitration and the Permanent Court of Arbitration operating at the Hungarian Chamber of Agriculture, other permanent courts of arbitration will cease to exist.