Does the Legal Framework of the United Arab Emirates Comply with International Standards for the Protection of Foreign Investors?

<ns5:p>The protection of foreign investors has witnessed significant development under international investment law, particularly with the increase of bilateral investment agreements, and the different mechanisms of international investment arbitration. Despite the development of international standards for protecting foreign investors, there is still ongoing legal and arbitration debate about whether the national laws of host states are fully consistent with these standards or not. This study discusses the legal framework that is regulating the protection of the foreign investors in the United Arab Emirates, by analyzing the relevant UAE legislation, including key investment protection standards. In addition, this study discusses the practical challenges resulting from the interaction between the national legal system and international investment arbitration, particularly with regards to the different interpretations of investment protection standards, and the wide discretionary powers granted to arbitration tribunals. This study adopts a comparative analytical approach, supported by a critical analysis of selected arbitration awards. This was achieved through examining the rules regulating the protection of foreign investors under UAE legislation and comparing them with the relevant international standards, while also benefiting from comparative models, particularly those of France and Singapore. The study concludes that there is a relative degree of integration between the UAE’s legislations and the principles of international investment law. The study also shows that the UAE legal system has achieved noticeable progress in strengthening the investment environment. However, some aspects still require more legislative clarity and better regulatory consistency with contemporary standards of international investment law. Accordingly, this study recommends further development of legislative and regulatory mechanisms related to foreign investment, in order to enhance consistency with international investment standards.</ns5:p>