The Role of International Arbitration in Preserving Investment

Introduction

In light of increasing globalization and the growing interconnection between global markets, foreign investment has become one of the primary drivers of economic growth. However, there is a growing need for legal mechanisms to protect the rights of investors, especially when it comes to disputes that may arise between investors and host states. This is where international arbitration comes into play as an effective and reliable means of resolving disputes between conflicting parties in a fair and swift manner, greatly contributing to the creation of a safe and sustainable investment environment

The Role of International Arbitration in Protecting Investment

International arbitration contributes to the protection of investment in several ways, including
Providing neutrality and fairness

International arbitration is characterized by neutrality, as independent arbitrators are appointed who have no personal interest in the dispute. This ensures fair and unbiased decisions, enhancing investors' confidence in the legal system of the host country

Maintaining confidentiality

Many companies and investors prefer confidentiality in dispute resolution to avoid potential damage to their reputation. International arbitration offers complete confidentiality in the proceedings, protecting the interests of companies.
Speed and efficiency

Compared to national courts, which may take years to resolve disputes, international arbitration provides a faster and more efficient mechanism, reducing the financial and temporal losses that investors may incur

International enforceability of awards Member states of the 1958 New York Convention are obligated to enforce international arbitration awards on their territories. This enhances the enforceability of rulings, assuring investors that their rights will be protected even outside their home countries
Overcoming local legal obstacles

Some national judicial systems may be complex or unreliable for foreign investors. International arbitration allows investors to bypass these obstacles and safeguard their rights through an agreed-upon international legal system

Conclusion

International arbitration is one of the key pillars in enhancing the confidence of both foreign and local investors alike. By providing an effective and neutral mechanism for resolving disputes, international arbitration contributes to a stable and secure investment environment, promoting economic growth and sustainable development. It is evident that international arbitration not only serves investors but also plays an important role in supporting countries' strategies to attract foreign investments and protect the rights of various parties