The seat of arbitration is undoubtedly important because of its supervision over the arbitration tribunal and the power to set aside the award. Most jurisdictions admit the territorial theory of international arbitration by adopting UNCITRAL Model Law. The delocalized theory of international arbitration is based on the doctrine of the enforcement of the annulled award. In fact, an annulled award does not exist and legally unenforceable. Bangladesh adopted the Model Law with an objective to become a center of international arbitration. It is evident that Bangladesh is yet to be considered an attractive place for international arbitration despite its adoption of the Model Law. On the other hand, Bangladesh deviated from the Model Law on some substantial issues of arbitration. These deviations badly affect the international arbitration regime in Bangladesh. While the Model law prescribes for minimum judicial intervention, the Arbitration Act of Bangladesh increases the scope of judicial intervention for arbitration seated in Bangladesh. The Model Law is the minimum standard of practice for international arbitration. A state can certainly deviate from the Model Law in accordance with its policy. However, this deviation should be for the improvement of the regime but not to shrink the international arbitration in the country. The significant developments in international arbitration over the past decades call for a rethinking of the present arbitration regime in Bangladesh.