The Law, Policy and Practice of a Major Petroleum Exporting Country on Investor-State Dispute Settlement Mechanism: The Experience of Saudi Arabia and Its Significance for the Development of International Investment Law

Saudi Arabia has experienced quite a big rise in recent years in the number of cases brought against it under the investor-State dispute settlement (ISDS) mechanism by foreign investors.1 Although these cases are relatively recent, the root of the problem dates back to the 1990s when Saudi Arabia joined many other countries in concluding bilateral investment treaties (BITs). Although some old generations of BITs are being replaced by new BITs by Saudi Arabia which seeks to balance investor protection with other international norms such as environmental protection, there is a long way to go for the country to bring its law, policy and practice that can strike a proper balance between investor protection and the incorporation of other societal values in such treaties. As a major oil-producing country, it is in the best interests of Saudi Arabia to review and revise its approach to ISDS not only in line with the current international practice but also in line with its own Vision 2030 so that the country can accomplish its overarching economic objectives and serve as a model for other oil-producing and natural resource-rich countries within the Gulf region and beyond.