An Introduction to Law Settlement of Disputes on International Investments, as Set forth at " ICSID Convention"

Adoption and implementation of regulations related to various legal facilities emphasizes the legislator's effort to coordinate the economic and social developments in order to develop and encourage foreign investment in the country. Determining the role of legal system in the host countries in the settlement of disputes and directing the fate of litigations of foreign investors to the mentioned system are the major causes of anxiety and concern among foreign investors. Their demand is the establishment of an appropriate legal platform in a totally unilateral environment, without the fear of favoritism or discrimination, in all possible litigations arising from international investments. Arbitration is the preferred method in those litigations. Here again efforts should be made to mitigate the concerns about dominance and possible favoritism by the host country. The ICSID Convention (International Center for settlement of investment Disputes) which has been adopted by most countries in the world emphasizes the fundamental characteristic in litigation process and balance between the interests of the host country and the foreign investor and thus sets forth legal guarantees to build real confidence. By accepting the ICSID Convention, the signatories shall guarantee the enforcement of the legal ruling in their countries, whether or not they are a part of the litigation, and regardless of their affiliation with the Convention.Iran has shown willingness and interest in clearing legal deadlocks and filling the legal gaps related to foreign investment by joining the 1958 New York Convention on the enforcement of litigation rulings and by approval of certain other laws and regulations. Therefore, there is no rational reason for Iran in not joining ICSID convention which is a complimentary phase of the steps that have already been taken.