Turkey or Egypt? Which Court Has Jurisdiction Over a Cross-Border Commercial Dispute?
In international commerce, a business relationship may begin with a simple contract between two companies—one Egyptian and the other Turkish—and later develop into a dispute over unpaid amounts, failure to perform contractual obligations, delayed delivery, defective goods, or a breach of the agreed terms.
This raises a question that may appear simple but is, in fact, one of the most sensitive legal issues:
If a dispute arises between an Egyptian company and a Turkish company, before which court should the lawsuit be filed—in Egypt or in Türkiye?
The accurate legal answer is that neither the Egyptian nor the Turkish courts are automatically competent simply because one of the parties is Egyptian and the other is Turkish. Jurisdiction must be determined according to several factors, beginning with a careful review of the contract, followed by an examination of any agreed jurisdiction clause or arbitration agreement, the applicable law, the place of performance of the contractual obligation, the nature of the dispute, and any applicable international conventions.
📑 The First Thing to Examine: The Contract
When a cross-border commercial dispute arises, the first step should not necessarily be filing a lawsuit. Instead, the contract should be carefully reviewed from a legal perspective.
The contract may contain a clause specifying the competent court, an arbitration clause, or a provision determining the law governing the contractual relationship.
Here, an important distinction must be made:
The choice of applicable law is not the same as the choice of court jurisdiction.
For example, the contract may state:
“This Agreement shall be governed by the laws of the Republic of Türkiye.”
This means that Turkish law has been chosen as the governing law of the contract, but it does not necessarily mean that Turkish courts have jurisdiction over the dispute.
On the other hand, the contract may contain a clause such as:
“Any dispute arising out of this Agreement shall be subject to the exclusive jurisdiction of the courts of Istanbul.”
This concerns jurisdiction.
Therefore, three different matters must be distinguished:
The applicable law, the competent court, and arbitration.
These concepts should not be confused when drafting international commercial contracts. Turkish Law No. 5718 on International Private and Procedural Law regulates matters including the applicable law, the international jurisdiction of Turkish courts, and the recognition and enforcement of foreign judgments.
🏛️ Can the Two Companies Agree in Advance on the Competent Court?
Yes. In certain commercial relationships, the parties may agree contractually on the court or courts that will have jurisdiction over their disputes.
Under Article 17 of Turkish Code of Civil Procedure No. 6100, merchants or public-law legal entities may, subject to the applicable legal requirements and limitations, agree on one or more courts to hear disputes that have arisen or may arise between them.
Article 18 further provides requirements concerning such jurisdiction agreements, including that the agreement be in writing, that the legal relationship giving rise to the dispute be specified or identifiable, and that the competent court be determined.
Accordingly, a clause such as:
“Istanbul Courts shall have jurisdiction.”
may be highly significant when a dispute arises.
However, the mere presence of a jurisdiction clause does not automatically establish that the clause is valid and enforceable. Its wording, the nature of the relationship and dispute, mandatory legal provisions, and any exclusive jurisdiction rules must all be examined.
🇹🇷 What If the Contract Chooses a Turkish Court?
If a contract between an Egyptian company and a Turkish company contains a valid agreement granting jurisdiction to a Turkish court, proceedings in Türkiye may be available, subject to the terms of the agreement and the applicable legal rules.
However, the matter does not end with the statement “Turkish courts have jurisdiction.”
It may also be necessary to determine which specific court and judicial district has jurisdiction, as well as whether the dispute falls within the relevant subject-matter jurisdiction of that court.
It is also important to determine whether the dispute is commercial in nature, whether any mandatory pre-litigation procedures apply, and whether the governing law requires certain steps to be taken before proceedings are initiated.
This is why consulting a lawyer experienced in international commercial disputes before commencing proceedings can be important. Choosing the wrong forum or procedure may result in additional costs, delays, or jurisdictional objections.
🇪🇬 What If the Egyptian Company Wants to File the Lawsuit in Egypt?
The fact that one party is an Egyptian company does not automatically mean that Egyptian courts have jurisdiction.
The applicable Egyptian jurisdictional rules must be examined together with the contract, the place of performance of the obligation, the defendant’s place of business, the nature of the dispute, any jurisdiction or arbitration agreement, and any relevant international conventions.
Likewise, the presence of a Turkish company as a party does not automatically mean that the lawsuit must be filed in Türkiye.
The nationality of the companies is not, by itself, decisive. What matters is the legal connection between the dispute and the relevant country and court.
Therefore, a professional answer to the client’s question—“Should I file the case in Egypt or Türkiye?”—should not be given before the relevant documents and circumstances have been examined.
⚠️ What If the Contract Does Not Specify the Competent Court?
This can make the matter more complicated.
If the contract does not contain a clear jurisdiction clause, the international jurisdiction rules of the country where proceedings are being considered must be examined, together with the legal connections between that country and the dispute.
In Türkiye, Law No. 5718 on International Private and Procedural Law regulates the international jurisdiction of Turkish courts in private-law relationships involving a foreign element. The law also gives priority to applicable international conventions to which Türkiye is a party within their respective scope.
Depending on the nature of the dispute, relevant factors may include the defendant’s place of business, the place where the contractual obligation was to be performed, the nature of the contractual relationship, and, in certain types of claims, the place where the damage occurred.
💰 A Turkish Company Has Not Paid an Egyptian Company’s Outstanding Amounts… Where Should Proceedings Begin?
Suppose an Egyptian company supplied goods to a Turkish company, but the Turkish company failed to pay the full amount due.
The first question should not simply be:
“Should I file the lawsuit in Türkiye?”
The legal relationship must first be examined.
Is there a written contract?
Does the contract specify the applicable law?
Does it specify a competent court?
Is there an arbitration clause?
Where were the goods delivered?
Where was payment supposed to be made?
Are there invoices and shipping and delivery documents?
Are there communications confirming or acknowledging the debt?
Were any partial payments made?
Does the contract establish a specific period for notification or claims before legal proceedings are initiated?
All of these factors may affect the appropriate legal course of action.
📦 What If the Dispute Concerns Defective or Non-Conforming Goods?
The same principle applies to disputes involving the supply of goods.
If a Turkish company ships goods to an Egyptian company and the Egyptian company later discovers that the goods do not conform to the agreed specifications, it is not sufficient to say:
“The goods arrived in Egypt, therefore the Egyptian courts have jurisdiction.”
The contract, delivery terms, specifications, inspection procedures, deadlines for notifying defects, applicable law, jurisdiction or arbitration clauses, and any applicable international rules must all be examined.
Therefore, the location of the goods alone is not necessarily decisive in determining jurisdiction.
⚖️ The Law Governing the Contract Is a Different Matter
One of the most common mistakes in international contracts is for the parties to write:
“Turkish Law shall apply.”
and then assume that this automatically means:
“Therefore, Turkish courts have jurisdiction.”
That is not necessarily the case.
The applicable law answers the question:
Which law will govern the rights and obligations arising from the dispute?
Jurisdiction, on the other hand, answers:
Which court will hear the dispute?
Turkish private international law may allow parties to choose the law governing contractual obligations in agreements containing a foreign element, subject to mandatory provisions and applicable exceptions.
Therefore, an international commercial contract should clearly address both issues rather than leaving them open to interpretation after a dispute arises.
🔥 What About Arbitration?
In some international commercial relationships, the parties may choose arbitration instead of litigation before state courts.
In such cases, the question becomes different.
If the contract contains a valid and enforceable arbitration agreement, the dispute may be required to proceed through arbitration rather than before a court, depending on the wording and scope of the arbitration clause and the applicable legal framework.
International commercial arbitration deserves particular attention when the company’s assets or the other party’s assets are located in a country different from the country where the award is issued.
Therefore, it is not enough for a client to say:
“The contract has an arbitration clause.”
The arbitration agreement itself should be examined, including its scope, the arbitral institution or appointing authority, the seat of arbitration, the applicable procedural rules, the governing law, and the process for enforcing the award in the country where the opposing party’s assets are located.
🌍 What If a Judgment Is Issued in Egypt and We Want to Enforce It in Türkiye?
This is a particularly important issue for companies engaged in cross-border business.
Obtaining a favorable judgment in one country does not automatically mean that the judgment can be directly enforced in another country.
For example, if an Egyptian court issues a judgment against a Turkish company and the company’s assets are located in Türkiye, the successful party may need to seek recognition and enforcement of the foreign judgment in Türkiye in accordance with Turkish law and any applicable international conventions.
Turkish Law No. 5718 regulates the recognition and enforcement of foreign judgments. This is a separate legal stage from simply obtaining the foreign judgment.
This demonstrates why enforcement should be considered from the beginning of the dispute—not only after a judgment has been obtained.
A company may obtain a favorable judgment and later discover that the debtor’s assets are located in another country, creating an additional legal process to reach those assets.
🚨 The Biggest Mistake: Filing a Lawsuit Before Reviewing the Contract
One of the most common mistakes companies can make when a cross-border dispute arises is to treat it as an ordinary domestic dispute.
Egyptian company + Turkish company ≠ ordinary domestic lawsuit.
The presence of a foreign element may raise questions concerning international jurisdiction, applicable law, recognition and enforcement of foreign judgments, arbitration, and relevant international conventions.
Therefore, the correct approach is not always:
“File the lawsuit in Türkiye.”
Nor is it necessarily:
“File it in Egypt.”
Instead:
“First determine the competent forum and the appropriate legal mechanism after examining the contract, the commercial relationship, the location of the relevant assets, and the contractual obligations.”
📂 What Should the Client Prepare for the Lawyer?
Before the legal assessment begins, it is advisable to prepare the contract and all of its annexes, invoices, purchase orders, shipping and delivery documents, payment and bank-transfer records, electronic correspondence, WhatsApp messages relating to the transaction, meeting records, previous notices or demands, and documents establishing the nature and extent of the loss or contractual breach.
Clients should not delete correspondence or documents merely because they appear insignificant. A seemingly minor document may establish the date of a breach or demonstrate the other party’s acknowledgment of a particular obligation.
It is also important to preserve both original documents and electronic copies, and to determine the language of each document and whether translation, certification, or legalization may be required for submission to the relevant authority.
⏳ What About the Time Limits for Filing a Claim?
This issue should not be postponed.
Commercial claims may be subject, depending on their nature and the applicable law, to limitation periods and procedural deadlines.
Certain contracts may also establish specific periods for notifying defects, submitting claims, or objecting to delivery documents.
Therefore, waiting several months or years before seeking legal advice may make the company’s position more complicated, even where it may have a substantive legal claim.
🇹🇷 Türkiye mi, Mısır mı?
The real question is not:
“Türkiye or Egypt?”
It is:
Where does jurisdiction lie? What law governs the dispute? What is the appropriate mechanism for resolving it? And how will the judgment or award be enforced if the opposing party’s assets are located in another country?
These questions should be answered before proceedings are initiated, not after the lawsuit has already been filed.
For international commercial contracts, addressing these issues from the moment the contract is signed is generally far better than waiting until a dispute arises and only then trying to determine the appropriate forum.
🔐 Conclusion
A dispute between an Egyptian company and a Turkish company may initially appear to be a simple commercial disagreement. However, it can develop into a cross-border dispute involving questions of jurisdiction, applicable law, arbitration, and recognition and enforcement of judgments or awards.
Therefore, if a dispute arises between your company and a company located in another country, do not begin legal proceedings before determining:
Which authority should hear the dispute?
Which law will govern it?
Is there a jurisdiction or arbitration clause?
And will the judgment or award be enforceable in the country where the opposing party’s assets are located?
⚖️ In international commercial disputes, choosing the right legal route is an essential part of protecting your rights.
🇹🇷 Doğru mahkeme, doğru hukuk, doğru strateji.
🇬🇧 The right forum. The right law. The right strategy.
🌍 Soada7 – Legal & Commercial Consultancy
Legal expertise beyond borders.
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📍 Ankara Kızılay Sıhhiye – İstanbul Çağlayan | Kahire
This content is provided for general legal awareness and does not constitute legal advice or an assessment of any specific case. Determining the competent court and applicable law requires a review of the contract, relevant documents, and the specific circumstances of each dispute.