Resolution of International Investment Disputes through Arbitration

Foreign investment plays an important role in the economic development of states, and investors in turn expect a stable legal environment. Where disputes arise between a foreign investor and the host state, international investment agreements usually provide for arbitration. Our Turkish article examines this mechanism.

The article introduces investment arbitration and focuses on ICSID arbitration, covering the conditions for bringing a claim, how the proceedings work, the applicable law, the remedies available against ICSID awards and their enforceability.

It then discusses the main criticisms of investment arbitration, including concerns about predictability, competing forums, the structure of arbitral tribunals, democratic principles, the influence of foreign investors over the rules and the effect of umbrella clauses.

Finally, it compares investment arbitration with commercial arbitration and highlights the differences that investors and states should keep in mind when planning or assessing a dispute.

This is a short English summary of our article published in Turkish.