Article 139 of Iranian Constitution and Foreign Investment Disputes Settlement

Abstract

With regard to promotion and protection of foreign investment and settlement of disputes arising out of it, Iran has enacted special law titled Foreign Investment Promotion and Protection (FIPPA) and also has signed more than 60 Investment Treaties which refer investment disputes to international arbitration subject to certain conditions. On the other hand, Article 139 of Constitution of the Islamic Republic of Iran has conditioned referral of disputes on public and state properties (including foreign investment) to arbitration to permission and approval of Board of Ministers and the Parliament of Iran. These supposedly conduce to incongruity of rules and legal environment of Iran for foreign investment.

Keywords: Foreign Investment, Article of 139 of constitution, Arbitration