Abstract

Recently, in world market, States have become more involved in international business transactions. However, the various international contracts have been concluded between States and individual investors, either directly or through their State entities. The extent of the State’s or State entity’s commitment to arbitration clauses drafted within these commercial contracts and the fact that States seek immunity from jurisdiction and execution of arbitral award has been a major and knotty issue before arbitral award tribunals and the courts. It is on this background that, this paper will critically examine the enforcement and practicability of sovereign immunity doctrine in international commercial arbitration, and the way forward.

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