This Practice Note discusses the concept of expropriation in investment arbitration in the Gulf. In doing so, it takes account of the various expressions of this concept under regional and international investment instruments of relevance to the GCC countries.

The Practice Note considers the meaning of direct and indirect expropriation and explains the circumstances in which an expropriation might qualify as lawful or unlawful. Within this context more specifically, the note also explores the limits within which instances of expropriation may require the payment of compensation in order to qualify as lawful as well as the payment of compensation for unlawful expropriation.

Finally, the Practice Note deals with the issue of attribution and more specifically the question of the extent to which the underlying expropriatory conduct is attributable to a respondent host State in order to engage that host State's legal responsibility under international law.

AIC: Arab Investment Court, established under the Arab Investment Agreement.

Arab Investment Agreement: Unified Agreement for the Investment of Arab Capital in the Arab States, signed in Amman, Jordan, on 26 November 1980, as amended in 2013.