State Immunity in International Investment Disputes: Role of State Immunity in Resolving Investment Disputes and Adjudication Implications

  •  Azab Alaziz Alhashemi    


The surge in international investment activities has led to a corresponding increase in international investment disputes, presenting significant challenges for states. State immunity serves as a fundamental concept designed to shield sovereign states from being subjected to lawsuits or foreign court jurisdiction. By affording this protection, state immunity permits states and their representatives to carry out crucial public functions without undue interference. Against this backdrop, this review article undertakes a comprehensive analysis of the role of state immunity in resolving international investment disputes and explores its implications for adjudication processes. The study critically examines the intricate interplay between state immunity and international investment disputes, elucidating how this legal principle influences the resolution of such conflicts. It explores the mechanisms through which state immunity operates, highlighting its impact on the ability of investors to pursue legal actions against states in international tribunals or national courts. By delving into relevant case law, international treaties, and legal principles, this review article evaluates the extent to which state immunity can limit or undermine the rights of foreign investors and the implications this has for the effectiveness and fairness of adjudication in investment disputes. Furthermore, the study assesses the evolving international legal framework surrounding state immunity and its implications for the resolution of investment disputes. It analyzes recent developments, including shifts in state practices, treaty provisions, and judicial decisions, to shed light on emerging trends and challenges in this area. By providing a comprehensive examination of state immunity in the context of international investment disputes, this review article contributes to a deeper understanding of the complex dynamics between states and foreign investors and offers insights into the evolving landscape of investment arbitration.

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