Fair and Equitable Treatment in Saudi Bilateral Investment Treaties

In: Arab Law Quarterly
Sarah Alshahrani University of Leeds, Leeds, UK

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Fair and equitable treatment (FET) is one of the general principles included in bilateral investment treaties (BITs) and it is as important as the expropriation clause. Recent investment tribunal practice has shown that FET is one of the most frequently invoked provisions. All Saudi BITs include an old version of the FET clause. However, the vagueness and ambiguity of FET can hold the country liable when it enacts measures in the public interest, and, therefore, a thorough analysis of the best formulation of FET is necessary in order to achieve predictability and certainty for both the investor and the host state, in addition to the need to widen the police power of host states.

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