As the second largest international investment agreement in the world in terms of membership, the Organisation of the Islamic Conference (OIC) Investment Agreement is a unique multilateral investment agreement that confers rights and imposes obligations upon investors. With a string of cases lodged under the treaty – at times, as a matter of last resort – its growing jurisprudence reflects the procedural deficiencies and ambiguities arising out of a yet-to-be-established judicial organ to settle investment disputes.With OIC Resolution No 1/43-E providing a mandate for reforms, the authors dissect the treaty to address the issues of OIC Secretary-General appointments, most-favoured nation clause application, jurisdiction and forum designation, and dispute settlement mechanisms, as well as parallels to be drawn from the existing Arab Investment Court and the International Islamic Court of Justice. In light of criticism other “mega-regional” investment agreements are facing such as the Energy Charter Treaty, the article also analyses scenarios of amendments, and even termination of the OIC Investment Agreement that should be considered to address the uncertainties created by a well-intentioned but ultimately deeply flawed international instrument.
BCDR International Arbitration Review