Investor-state arbitration in the Sultanate of Oman: lessons to be learned from the European Union’s approach to the investment court system

Al Badi, Said Saleem Marhoon

Abstract

The Sultanate of Oman strives to promote economic growth. Foreign investment is one of the most important vehicles for achieving this purpose. The Oman Vision 2040 identifies Foreign Direct Investment as the basis of future economic development. To make Oman a more attractive destination for foreign direct investment, the government has developed and implemented a variety of policies. Modernizing the legal framework governing FDI is central to these policies. Considering this, the question arises as to whether the legislative structure governing investor-state arbitration as a means to ensure that Oman fulfils its obligations to international investors requires modification.
Investor-state arbitration has played a crucial role in promoting direct foreign investment. It represents one of the legal procedures for resolving investment disputes between host states and foreign investors. Typically, bilateral investment treaties or multilateral free trade agreements provide for investor-state arbitration as a means of settling potential disputes between host states and international investors. However, investor-state arbitration has been criticised in recent years for being partial, less transparent, and severely impacting the regulatory authority of the host state. This critique has prompted calls for reform of the system for resolving investment disputes. The European Union has undertaken reforms to this system through the investment court system (ICS).
This thesis analysis the legislative framework governing investor-state arbitration in Sultanate of Oman and evaluates the need for reform considering mentioned conditions and the Oman's desire to become a more attractive destination for international investments. This necessitates an examination of Oman's national laws pertaining to arbitration and foreign investment in order to identify potential weakness. In addition, bilateral and regional investment treaties, as well as international Conventions related to investor-state arbitration, to which Oman is a signatory, are examined in order to determine Oman's obligations in relation to investor-state arbitration. Furthermore, a comparison is made between ICSID arbitration and the EU's model of the Investment Court System in order to assess the EU's approach to reforming the investment dispute settlement system. This thesis concludes that many aspects of Oman's legal framework governing investor-state arbitration require revision. As a result, the Oman government must adopt an integrated plan to review and modernise this framework in response to Oman Vision 2040 and as part of its broader foreign investment and economic development policy.

Citation

Al Badi, S. S. M. Investor-state arbitration in the Sultanate of Oman: lessons to be learned from the European Union’s approach to the investment court system. (Thesis). University of Hull. https://hull-repository.worktribe.com/output/4321282

• Thesis Type: Thesis
• Deposit Date: Jul 3, 2023
• Publicly Available Date: Jul 3, 2023
• Keywords: Law
• Public URL: https://hull-repository.worktribe.com/output/4321282
• Award Date: Dec 1, 2022