Mohamed Abdulmohsen Al‐Kharafi & Sons Co. v The Government of the State of Libya and Others (Case Comment)
Journal of World Investment and Trade, 16 (2015) 321-329
9 Pages Posted: 21 Mar 2015 Last revised: 27 Mar 2015
Date Written: March 19, 2015
The Al-Kharafi award brings to light a previously unexploited investment treaty, the Unified Agreement for the Investment of Arab Capital in the Arab States (UAIACAS) (entered into force on 7 September 1981). All 22 members of the League of Arab States are parties to the UAIACAS, and have ratified it with the exception of Algeria and the Comoros. Article 25 UAIACAS provides that ‘[d]isputes arising from the application of this Agreement shall be settled by way of conciliation or arbitration or by recourse to the Arab Investment Court.’ If an attempt at conciliation fails, the parties may agree to settle the dispute through arbitration, and if the parties fail to agree on the resolution of the dispute through arbitration, the dispute can be taken to the AIC. The AIC, although established as an organ of the UAIACAS, has its own Statute, which entered into force in 1985 and is operational since 2003 when the AIC first entertained a Saudi Arabian investor’s claim against Tunisia. The procedure for arbitration is provided in the Annex to UAIACAS.
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