International Arbitration in International Investments A study of the Essay

International Arbitration in International Investments A study of the effectiveness of The International Investments Arbitratio - Essay Example The aim of this dissertation is to study the current arbitration laws in the Kingdom and examine the extent of the effectiveness of investment arbitration. The new 2012 arbitration laws can be said to be a welcome change in the arbitration scenario in Saudi Arabia, as it tries to rectify the drawbacks of the old law. The new law traces many of its provisions to the model law, and therefore has concepts that have an international outlook. One major change in the new law is where the role of the court has been changed from a supervisory body to that of an advisory body. This marked change means that the arbitral bodies have extra powers in the enforcement of arbitral awards. The new 2012 law therefore has provisions that can calm the fears of foreign investors and bring about the effectiveness of arbitral awards in Saudi Arabia. Abstract Since the ARAMCO case, doubts have arisen about the effectiveness of international investment arbitration in Saudi Arabia. This dissertation will stud y and analyse the extent of the effectiveness of investment arbitration in the Kingdom. In the first chapter, the nature and scope of international investment arbitration will be discussed. ... The study of this approach includes analysing the ARAMCO case and the impact it has had. Also, the chapter discusses the basic principles of arbitration included in the SAL and the extent of its contribution to the effectiveness of arbitration. Chapter Four includes an analysis of the role of Saudi courts in the effectiveness of investment arbitration at the start of the arbitration process until arbitration award is rendered. The final chapter focuses on the obstacles of the recognition and enforcement of the arbitration award and analyses the defences, whether formal or substantive, that may lead to the nullity of the arbitral award according to the SAL. The last part of the chapter addresses the analysis of the conditions required for implementation of the arbitration award. Introductionntroduction Arbitration can be termed as â€Å"a private method of dispute resolution chosen by the parties themselves as an effective way of putting an end to disputes between them, without recou rse to the court of law†.1 For international investments, investors consider international arbitration to be the only vital mechanism to resolve disputes arising within the limits of the host state.2 It is an attempt to achieve some kind of balance between two parties whose legal statuses differ by one party being of Private International Law and the other of Public International Law. 3 Furthermore, it is also a way to not apply the authority of regulations and the local judiciary4, which increases in particular cases where these regulations are either unclear or investors are unaware of them. This happens to be true in the Kingdom of Saudi Arabia (KSA)5, where Islamic Shari’a (Shari’a)6 law dominates and controls the