V - The UAE & Investment Arbitration

The area of investment arbitration has gained importance over the past years. While the Gulf region is not in the spotlight of developments in this field in the same way as for example South America and Eastern Europe, it is not a stranger investment treaties and the arbitrations brought on their basis. In particular, the UAE is one of the countries in this region which has acceded to the ICSID Convention and maintains an increasing network of bilateral investment treaties (BITs). The following article will briefly look at the UAE's network of BITs and shed some light on the cases brought on their basis before, finally, drawing some conclusions from the foregoing analysis.

The UAE and their BITs

Proceedings brought on the basis of UAE BITs

Even though investment arbitrations against the UAE are not frequent, foreign investors have commenced proceedings on the basis of an existing BIT. Thus, in 2001, the Italian companies Impregilo and Rizzani de Eccher commenced proceedings against the UAE on the basis of the UAE - Italy BIT.*^[1] The dispute arose out of the construction of a mosque. The case was discontinued at the request of Claimants before a tribunal made a decision. The UAE - Italy BIT was also the basis for the next case brought in 2002. An Italian/Canadian investor commenced proceedings against the UAE.*^[2] The case received considerable attention as it raised interesting questions concerning the nationality of the investor. The tribunal declined jurisdiction as it found that the investor had lost his Italian nationality as a consequence of acquiring Canadian citizenship and was thus unable to rely upon the UAE - Italy BIT and the ICSID Convention.The ICSID annulment committee which was faced with the challenge brought by Claimants decided not to annul the award.*^[3]