Although it is not essential for the validity of an arbitration agreement, it is advisable to the parties drafting an arbitration agreement to determine the place of arbitration as well. The choice of the place of arbitration has significant legal consequences.

- It influences which law governs the arbitration procedure. Unless otherwise agreed upon by the parties, the legal provisions on arbitration of the place of arbitration are applied.

- It determines which courts can exercise supervisory and supportive powers in relation to the arbitration.

- It determines the competence and the procedure before the national courts to rule upon applications to set aside any arbitral award.