On 23 March 2023, Bill n° 7671/07, entitled Bill of Reform and Modernisation of Arbitration (the “Bill”), which sought to reform the arbitration law in Luxembourg, was unanimously passed in the Chamber of Deputies, Luxembourg’s legislature. The Preamble of the Bill describes the context of the reform by noting that Luxembourg’s arbitration law had not undergone a complete overhaul since the time of Napoleon’s codification and that the current arbitration regime was established at the time of the codification of Luxembourg’s Code of Civil Procedure in 1806.
Luxembourg’s new arbitration law, available here, entered into force on 25 April 2023.
Reform of Arbitration Law in Luxembourg: a Modern, Transparent and Liberal Legal Framework
With this new arbitration law, Luxembourg is now equipped with a modern, transparent, and liberal legal framework for arbitration, drawing modern inspirations from its neighbouring jurisdictions such as France and Belgium, aligning with the government’s agenda:
This alternative dispute resolution method will be modernised to highlight its advantages of flexibility, speed, and confidentiality while ensuring appropriate safeguards, particularly in terms of upholding public order, the rights of arbitration parties, and the rights of third parties, Preamble of the Bill 
The new arbitration law reestablishes the legal foundations of arbitration in Luxembourg, aiming to establish a coherent and widely recognised set of rules within the business world to ensure its effectiveness.
Main Takeaways from the Reform of Arbitration Law in Luxembourg
There are a handful of main remarks concerning the new Luxembourg arbitration law that merit the attention of the international arbitration community:
- The arbitral tribunal shall decide the issue of the arbitral tribunal’s jurisdiction (the “compétence-compétence” principle), whereby the arbitral tribunal shall gain autonomy vis-à-vis the Luxembourg national court’s review of the arbitration agreement;
- The institutionalisation of the separability and autonomy of arbitration clauses vis-à-vis the governing agreement;
- The non-differentiation between domestic and international arbitration;
- The access of parties to resort to a State court for interim measures;
- The institution of the “juge d’appui”, a “support judge” for arbitration within the Luxembourg judiciary, when the seat of arbitration has been set in Luxembourg (i); or the arbitral procedure has been agreed to follow Luxembourg procedural law (ii); or where the parties have agreed to grant jurisdiction to the Luxembourg judiciary to hear procedural disputes with regard to arbitration (iii); or where there is a significant nexus between the claim and Luxembourg.
Luxembourg has long been the financial hub for EU Investment Funds and the Banking and Finance industry. Luxembourg’s stable economic and geopolitical outlook, boasting an AAA credit rating by various credit rating agencies, as well as being centrally located geographically in the middle of the EU, make it an attractive destination as a neutral and international seat of arbitration, owing to Luxembourg being a multicultural and international and European State. Furthermore, as one of the founding members of the EU, Luxembourg is home to some of the major EU judicial institutions, including the Court of Justice of the European Union, and is home to many international and European legal practitioners.
Arbitration, as an effective method of dispute resolution, has yet to be on par with Luxembourg’s other services industries, such as the banking and financial or investment fund industries. While the impact of the new provisions remains to be seen, the new Luxembourg arbitration law is a significant move for the growth of arbitration in Luxembourg.
 P. Kinsch, « La législation luxembourgeoise en matière d’arbitrage », Bull. cercle F. Laurent, 1997, N° II et III ; « Le rôle de la magistrature dans le développement de l’arbitrage », J.T.L., 2015, N° 38 ; « Arbitrage et ordre public », J.T.L. 2016, N° 45.
 Projet de loi n° 7671/07 portant réforme de l’arbitrage et modification du titre I. du Livre III. « Des arbitrages » du Nouveau Code de procédure Civile