Fair and equitable treatment of investers under international investment law and from the Islamic practice

Abstract

This dissertation initially examines the concept of international investment law and it sources. Fair and equitable treatment (hereinafter “FET”) as one of the principles of International Investment law is examined under multilateral and bilateral investment treaties and the interpretation given by the international arbitral tribunals. These tribunals have the enforcement power of the FET concept and this dissertation will look at whether there are any differences between their interpretations and the contents of multilateral and bilateral investment treaties. The author will look at the extent to which FET can adversely affect the ability of governments, particularly those of developing countries to legislate for the public interest. Additionally, the author intends to inspect at how Islam responds to the fair and equitable treatment of investors. Host states standards of treatment, specifically protecting the investments as well as the dispute settlement, are issues that are connected to the globalization of economy and has led to disputes regarding access to markets, market liberalization and consequently the establishment of rights. Since its beginnings, Islam has been emphatic on the establishment of justice and providing fair and equitable treatment to everyone, from the ruler to the ordinary citizen, and regardless of faith, race, or place of origin. This study adopts both a conceptual analysis of fair and equitable treatment under international investment law and also from the Islamic perspective. This study finds that there is a considerable link between FET principles and Islamic perspectives on the protection of the investors and thus it condemns and prohibits any sort of misappropriation of one’s property without his or her consent.