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The First Arab Investment Court Decision

The First Arab Investment Court Decision For a long time, the idea of establishing a supranational tribunal in the field of investments was a dream. In 1948, the International Legal Association prepared draft statutes for a Foreign Investments' Court to provide a forum for the settling of investment disputes between States and foreign investors.' The Agreement for Promotion, Protection and Guarantee of Investment among Member States of the Organisation of the Islamic Conference also provided for the establishment of an organ for the settlement of investment disputes arising under the Agreement.2 However, this organ was never established. With the development of investor-State arbitration provided in bilateral and multilateral investment treaties (BITs and MITS), the creation of an international investment court seems to be outdated. Even if the establishment of a permanent court has the virtue of stability and predictability and would provide for relatively authoritative decisions, the creation of precedental effect is generally disliked. Indeed, such effect reduces the free hand of investors and States in settling investment disputes. Also, States may be particularly reluctant to accept such a mechanism when the substantive investment rules are unclear.3 This surely explains why, during negotiations for a multilateral agreement on investment (MAl) within the framework of http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of World Investment and Trade Brill

The First Arab Investment Court Decision

Journal of World Investment and Trade , Volume 7 (5): 23 – Jan 1, 2006

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Publisher
Brill
Copyright
Copyright © Koninklijke Brill NV, Leiden, The Netherlands
ISSN
1660-7112
eISSN
2211-9000
DOI
10.1163/221190006X00360
Publisher site
See Article on Publisher Site

Abstract

For a long time, the idea of establishing a supranational tribunal in the field of investments was a dream. In 1948, the International Legal Association prepared draft statutes for a Foreign Investments' Court to provide a forum for the settling of investment disputes between States and foreign investors.' The Agreement for Promotion, Protection and Guarantee of Investment among Member States of the Organisation of the Islamic Conference also provided for the establishment of an organ for the settlement of investment disputes arising under the Agreement.2 However, this organ was never established. With the development of investor-State arbitration provided in bilateral and multilateral investment treaties (BITs and MITS), the creation of an international investment court seems to be outdated. Even if the establishment of a permanent court has the virtue of stability and predictability and would provide for relatively authoritative decisions, the creation of precedental effect is generally disliked. Indeed, such effect reduces the free hand of investors and States in settling investment disputes. Also, States may be particularly reluctant to accept such a mechanism when the substantive investment rules are unclear.3 This surely explains why, during negotiations for a multilateral agreement on investment (MAl) within the framework of

Journal

Journal of World Investment and TradeBrill

Published: Jan 1, 2006

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