SWEDEN: An Introduction to Dispute Resolution
Sweden: A Powerhouse for Regional and International Disputes
Overview
Against the backdrop of Sweden and the Stockholm Chamber of Commerce’s (SCC) long-standing position in the arbitration world, the market for law firms within dispute resolution continues to transform in 2025. The driving forces behind these changes are a combination of economic, legal, and political trends, each of which affects the practice of dispute resolution.
In summary, Sweden is experiencing a gradual recovery from its financial downturn, driven in part by lower inflation and lower interest rates. The large green energy and infrastructure projects in northern Sweden are moving forward but not without certain financial friction. The geopolitical focus remains on security issues in the region, especially in light of Sweden’s recent NATO membership. The current economic, legal, and political trends for dispute resolution reflect the evolving landscape in 2025.
The conclusion is that Sweden’s arbitration-friendly legal framework and geopolitical position in the Nordic and Baltic region are what make Sweden a hub for Nordic and Baltic commercial arbitration and investor-state disputes, as well as the go-to place for East-West international arbitration.
Economic trends
Sweden’s economy in 2025 is continuing to recover from previous volatility, driven in part by lower interest rates, global economic stabilisation, and increased investments. Sweden’s GDP is expected to grow 2.5% in 2025. Sweden’s central bank has begun lowering interest rates, providing much-needed relief to businesses, households, and investors. As interest rates fall, a re-ignition of certain high-leverage sectors can be expected, which had previously struggled due to high inflation and borrowing costs.
However, despite these positive indicators, certain segments of the economy continue to face challenges. The real estate sector, for example, remains vulnerable as it continues to deal with previous financial strains. Corporate restructurings, recapitalisations, and contractual disputes still dominate the legal landscape in this area. Law firms specialising in financial and corporate disputes are likely to see continued demand for their services in the coming years. Additionally, the trend of bankruptcy cases is not expected to taper off immediately.
Energy transition projects have become an important element of Sweden’s industrial growth, particularly in 2025, with both renewable and nuclear energy projects gaining traction. These large-scale projects are attracting both domestic and foreign investment interested in Sweden’s green energy initiatives. However, as the complexity of these projects grows, so do the legal challenges. Disputes over project financing, delays, defects, and regulatory issues are growing. Law firms focusing on disputes within project finance, energy, construction, and environmental law can expect to have an increased workload.
Legal trends
The digital transformation of the legal field in Sweden has advanced significantly. The widespread adoption of artificial intelligence (AI) tools and digital platforms for managing cases and arbitration hearings is affecting how legal professionals work. Law firms are using AI for legal research, document review, and predictive analytics to improve efficiency. Virtual arbitration hearings, at least partially, which previously was a solution during COVID-19, are now part of the standard dispute resolution toolkit, making cross-border disputes less costly and more time-efficient.
The increasing globalisation of Sweden’s economy continues to drive growth in cross-border disputes. Law firms are now expected to be well-versed not only in Swedish and EU law but also in international trade law, investor-state disputes, and complex arbitration procedures involving multiple parties and legal systems. This also means that Swedish lawyers need a deeper understanding of common law and civil law systems, as adversarial matters increasingly involve parties from countries with differing legal traditions. This dynamic has made Sweden’s arbitration community, particularly the SCC, more central in global legal disputes. Law firms that adapt to this and broaden their expertise and client base can be expected to grow from this development.
Political trends
Sweden’s role in the Baltic region has (if not expanded) at least changed due to Sweden’s entry into NATO in 2024. As a result, Sweden is playing a different role in regional security than previously. The growing involvement in NATO has generated growth in matters related to public procurement, cross-border agreements, and the alignment of Sweden’s military-industrial complex with NATO. In addition to defence matters, the ongoing conflict in Ukraine and the evolving international sanctions regime continue to generate legal matters, in particular in relation to sanctioned parties. Sweden is seeing a steady stream of legal cases related to enforcement, provisional measures, frozen assets, and contractual breaches caused by the commercial effects of the conflict. These disputes are often complex, involving multiple jurisdictions and regulatory frameworks, and require an understanding of international, EU and Swedish law.
Sweden’s energy transition remains at the top of the political agenda. With plans for two new nuclear reactors by 2035 and expansion of nuclear energy by 2045, the regulatory environment is expected to grow even more complex. The construction of these reactors, along with the continued development of renewable energy sources like wind and solar power, will likely lead to a significant rise in disputes. These could range from construction and infrastructure disputes; project finance; environmental and regulatory compliance; public procurement; and the allocation of government funding. Law firms in energy; project finance; construction; public procurement; and regulatory compliance will likely see a growing workload in the near future.
Additionally, cyber threats are becoming increasingly sophisticated. Law firms are dealing with disputes involving ransomware attacks and data breaches, affecting both private corporations and government agencies. There have already been a number of larger commercial disputes as a result of cyber-attacks and the legal area is developing.
Conclusion
In 2025, the economic recovery, legal innovation, and geopolitical developments will continue to shape the market for dispute resolution in Sweden. For law firms, these trends present both opportunities and challenges. Firms focusing on financial disputes, energy and infrastructure disputes, and corporate disputes will be well positioned for the near future. Sweden’s arbitration-friendly legal framework ensures that Sweden remains a central player in international dispute resolution, strengthening its role as a hub for Nordic and regional international arbitration cases and investor-state disputes.