Commercial Arbitration under Investment Treaties and Contracts: Its Importance and Danger in the Arab World

Abstract

Abstract Given the importance of investments, a number of international and regional conventions have been set up in order to protect the parties to investment contracts by adopting arbitration as a method to resolve any dispute that might arise from such contracts. Despite the importance of commercial arbitration for foreign investment treaties and contracts, the process of its application has revealed many of the risks investment poses to the host, particularly Arab, country. This is because commercial arbitration has often been used as a legal means to protect foreigners from the harmful consequences that their investments have had on the environment. The most negative aspects of international commercial arbitration for foreign investment contracts are the modern trends that have been adopted in the field of arbitration, where host countries must comply even when their local laws and public policies are being violated.