Legislative stability condition in the contract of investment: A Comparative Study

Abstract

Investment contracts at the international level are considered one of the most important methods of financing for investment in developing countries, and the disparity in the legal positions of the parties to the investment contract gives this contract a special importance, as the host country, in addition to being a person of internal public law, is at the same time considered a person of international law. While the foreign investor is not considered a person of public international law, rather he is a person of internal law, and this is what makes the investor always seek means and methods to ensure that his rights are protected against the host country, as it is the owner of sovereignty and authority. The legislative stability requirement is considered one of the most important means that guarantee the investor the application and validity of the same legislation that was agreed upon at the time of the conclusion of the contract, away from the amendments made by the host country or even the issuance of new legislation by it.

This topic has been studied in two chapters. The first deals with defining the legislative stability condition, and explaining its forms and types, while the second deals with the legal conditioning of the legislative stability condition, as well as the obstacles that may be encountered.

At the end of this research, a set of conclusions and recommendations were reached, the most important of which is the inclusion of the legislative stability condition in the form of the condition restoring economic equilibrium, in order to achieve its intended purpose.