Protecting the ownership of the foreign investment project from the creeping danger of expropriation in the Kurdistan Region of Iraq
DOI:
https://doi.org/10.21271/ZJlP.22.36.3Abstract
Abstract
What the foreign investor fears most in the country hosting the investment, which may lead to his reluctance to make the investment decision, is the procedure for taking over the legitimate investment. Although this procedure is legitimate in itself if it fulfills certain conditions for achieving the requirements of the public benefit, and it is taken in a non-discriminatory manner and in accordance with legal principles. However, it carries with it one of the most important factors repelling foreign investment, and it is one of the most important risks that the investor seeks to ensure that they will not materialize. Therefore, the legal system that encourages foreign investment is not represented by the need to increase the benefits and rights of foreign investors to the extent that it stipulates minimizing the potential for this risk, it should be noted that the host countries have recently not resorted to this risk in order to preserve their economic investment reputation within the global economic system. Rather, to the creeping expropriation created by international custom and entrenched in the international regulations for investment, and this is represented in the host country for investment taking measures that cannot be described as expropriation systems directly, but it will gradually and indirectly in the end lead to the same result of expropriation direct, and since the Investment Law in the Kurdistan Region of Iraq No. (4) of 2006 did not include guaranteeing the ownership of the investment project from this risk, despite its importance to the foreign investor, especially since the latter was not covered by legal protection from this risk through the guarantees agreement represented in the agreements to encourage and protect investment between the investor’s country foreign exporting investment and territory, accordingly, this research will devote effort to shed light on this type of expropriation and clarify its features and ways of protection from it, in the hope that the Kurdistan legislator will adopt it in the new draft law for investment in the region.
References
What the foreign investor fears most in the country hosting the investment, which may lead to his reluctance to make the investment decision, is the procedure for taking over the legitimate investment. Although this procedure is legitimate in itself if it fulfills certain conditions for achieving the requirements of the public benefit, and it is taken in a non-discriminatory manner and in accordance with legal principles. However, it carries with it one of the most important factors repelling foreign investment, and it is one of the most important risks that the investor seeks to ensure that they will not materialize. Therefore, the legal system that encourages foreign investment is not represented by the need to increase the benefits and rights of foreign investors to the extent that it stipulates minimizing the potential for this risk, it should be noted that the host countries have recently not resorted to this risk in order to preserve their economic investment reputation within the global economic system. Rather, to the creeping expropriation created by international custom and entrenched in the international regulations for investment, and this is represented in the host country for investment taking measures that cannot be described as expropriation systems directly, but it will gradually and indirectly in the end lead to the same result of expropriation direct, and since the Investment Law in the Kurdistan Region of Iraq No. (4) of 2006 did not include guaranteeing the ownership of the investment project from this risk, despite its importance to the foreign investor, especially since the latter was not covered by legal protection from this risk through the guarantees agreement represented in the agreements to encourage and protect investment between the investor’s country foreign exporting investment and territory, accordingly, this research will devote effort to shed light on this type of expropriation and clarify its features and ways of protection from it, in the hope that the Kurdistan legislator will adopt it in the new draft law for investment in the region.
