Effective Legal Systems for the Protection of Foreign Direct Investments: Comparative Analysis Between the UK and the US.

Abstract

Foreign direct investment has emerged as one of the most important forms of investment in the investment market, and because investors are aiming to discover new markets in order to enhance foreign direct investment flows, they are looking for and are attracted to legal systems that would be more effective and offer more protection to the investor and their investments. This is particularly important because for the investor, it is difficult and troublesome to maintain their investments in the host countries, so the need to understand the limits of protection available to them has become of paramount importance. This study seeks to understand the protection offered to the foreign investor, especially since some countries may expropriate the property or investments of the investor, who may be treated in an arbitrary or unfair manner. Therefore, the study focuses on protecting this investor in all stages of their investment journey, starting from the pre-establishment stage, which is known as the pre-investment stage, and ending with the post-investment stage, which protects the investor from expropriation and offers international dispute settlement. Between these two stages is the most important stage that the investor goes through, that is, the stage during and within the investment in which the investor receives the treatment. The study examines in depth the legal system of customary international law and bilateral investment treaties and offers a comparison of the legal systems of the United Kingdom and the United States and what it offers to the investor that has made it one of the largest and largest investments in the world. The dissertation concluded that the legal system for the protection of foreign investors for these two jurisdictions needs some improvements, such 6 as more clarification of the clauses that may mislead the investor and affect that investor obtaining the required protection.