Settlement of disputes arising from investment A study of the provisions of the Investment Protection and Promotion Agreement between Iraq and the Islamic Republic of Iran

Iraq is considered a newcomer to investment, as the state turned to a free economy after changing the political system in 2003 and rejecting the socialist economy that was adopted by the Ba’ath government at that time. As a result, Investment Law No. (13) of 2006 was enacted, which includes provisions related to encouraging non-governmental investment, whether domestic or international, and attracting foreign investment in order to advance the deteriorating economic reality in the country due to the futile wars and the international blockade for a relatively long period.

The state had to conclude bilateral international agreements between countries whose investments were believed to contribute to entering the starved Iraqi market. In implementation of this trend, Iraq has concluded bilateral agreements with some countries to protect and encourage mutual investments, including the agreement to protect and encourage investment between Iraq and the Islamic Republic of Iran, which was signed in Tehran on September 6, 2015.

This agreement contains so many details, but what concerns us is the methods of settling disputes arising from investment in accordance with the provisions of this agreement, whether those that occur between the two contracting states (Iraq and Iran) or disputes that arise between one of the contracting states and an investor from the other country. Emphasis was placed on friendly methods and negotiations, referring the dispute to the national judiciary within the host country for investment, or referring it to specialized arbitration bodies. This study came to clarify these matters and was strengthened with suggestions and recommendations at the end, which the researcher considers essential and important.

As full understanding of the topic concerning with the disputes arising from the investment under the agreement signed between Iraq and Iran requires understanding of legal organization of investment entities in both countries; so this study deals with organizing frame of the National Investment Commission in Iraq (NIC) and the organizing frame of the Provincial Investment Commissions  in Iraq (PIC) in addition to legal organization and organizing frame of the the investment entities in Iran.