The condition of legislative stability in investment contracts and its evaluation

Abstract

Accomplishing legal sureness for foreign investors constitutes a mutual concern for the hosting country and the foreign investor. Both seek a mutually acceptable form that accommodates their conflicting interests and faces circumstances variations that may be associated with the contract's implementation. The legislative stability condition represents a legal solution that helps parties to a foreign investment contract avoid the risk of changing circumstances associated with long-period contracts.

Despite the importance of the legislative stability condition and the legal and practical solutions, it has accommodated the protection of the foreign investor and is an alluring factor for him to invest in the hosting country through establishing a sort of balance between conflicting interests in foreign investment contracts, it has not escaped criticism on many counts which has meant that it is necessary to shed light on the evaluation of the legislative stability condition in foreign investment contracts.