Abstract

International investment arbitration has evolved as a very important mechanism for solving disputes between investors and foreign states. As Globalization continues to encourage cross-border investment, the conflict between investors and host states has become increasingly common. A fair and efficient dispute resolution mechanism becomes paramount when the countries continue to attract foreign investment for boosting the nation's economic development. The below article aims to explain Foreign investments, what Foreign Investment Disputes are, what causes such disputes, and how such disputes are resolved. While dealing with the resolution of Foreign Investment Disputes the article helps to understand the different mechanisms that are available for resolution and specifically the role of Investment Arbitration in resolving such disputes. The article also highlights the importance of specialized tribunals in resolving disputes between investors and host states. ICSID is the leading organization with significant experience in this area when it comes to organizations dedicated to the resolution of international investment disputes. The Convention on the Settlement of Investment Disputes between States and Nationals of Other States was established in 1966, and since then it has handled about 900 such cases. In arbitration, disputes are presented to arbitrators or to organizations that do so, who subsequently choose arbitrators in accordance with the parties' agreement. The arbitrators then reach a verdict on the dispute. When the same arbitration is conducted over an international investment issue, it is referred to as an international investment arbitration. By the end of the article, you will understand what foreign investments are, what investment arbitration is, and how investment arbitration helps to settle disputes involving such international investments.

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