This Practice Note discusses the fair and equitable treatment (FET) standard in investment arbitration in the Gulf. In doing so, it will define the scope and address potential violations of the FET standard under both international as well as regional investment law, including all regional and international investment instruments of relevance to foreign direct investment in the Gulf.

This Practice Note also discusses how the FET standard interacts with and distinguishes itself from related standards of treatment, such as the standard for full protection and security (FPS), which is of particular importance within the context of investment arbitration in the Arab Spring. Other key standards of investment protection that will be discussed within this context are national or non-discriminatory treatment and most-favoured nation (MFN) treatment.

Finally, the Practice Note identifies remedies that are available to a foreign investor for violation of the FET standard and the other key standards of investment protection by a GCC host State under the applicable regional and international investment laws and instruments, in addition to providing some initial guidance on the challenging question of attribution.

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