Settling Investor-State Disputes in the GCC: A Critical Analysis of the Challenges under International Investment Law

The study critically analyses the challenges and obstacles encountered in resolving investor-state disputes within the Gulf Cooperation Council (GCC) states under the framework of international investment law. The number of established bilateral investment treaties involving GCC states has increased over the past decade to promote foreign direct investment. Most treaties include arbitration provisions as a method of dispute resolution, often governed by international institutions such as the International Centre for Settlement of Investment Disputes (ICSID). However, the difficulty lies in balancing state sovereignty with investor protection in accordance with international investment law. The analysis reveals several anticipated challenges faced by host states due to the growing number of bilateral treaties, particularly as foreign investors raise claims that challenge the host state's regulatory rights. GCC states must adopt measures that limit the risks associated with the Investor-State Dispute Settlement (ISDS) mechanism. The study outlines a series of recommendations to address these challenges while also protecting foreign investors.