AN EXAMINATION OF THE FOREIGN INVESTMENT DISPUTE SETTLEMENT SYSTEM IN THE KINGDOM OF SAUDI ARABIA

Abstract

Abstract

The protection of foreign investment is a crucial aspect of attracting international investors to any state. Thus, this research presents a critical evaluation of the mechanisms for resolving investment disputes in Saudi Arabia through judicial and non-judicial means. Because foreign investors are likely to refer to arbitration disputes arising from their investments in the host country, close attention will be paid to domestic arbitration as a mechanism for resolving investment disputes. In addition, the research presents the issues facing international investors and Saudi courts during the resolution of investment disputes. The clauses of dispute settlement mechanisms in relevant bilateral agreements to which Saudi Arabia is a party will also be discussed. This research emphasizes that an investor considering an investment in the Kingdom of Saudi Arabia has a range of mechanisms available in the event of a dispute arising from the investment. It is critical to understand that the mechanisms could be classified as amicable or non-amicable. Mediation, negotiation, and arbitration are the most common procedures. On the other hand, there are judicial mechanisms of resolution, such as litigation. The mechanisms for resolving disputes may be domestic or international in scope. In general, the dispute resolution processes accessible to investors demonstrate a secure environment for them investors to invest with confidence, indicating that the Kingdom of Saudi Arabia's investment climate seems to be developed and sophisticated.