With regard to the promotion and protection of foreign investment and the settlement of related disputes, the Islamic Republic of Iran (Iran) has enacted a special law entitled Foreign Investment Promotion and Protection Act (FIPPA) and has also signed more than 60 Investment Treaties, which refer investment disputes to international arbitration subject to certain conditions. On the other hand, Article 139 of the Constitution of Iran has conditioned referral to arbitration of disputes on public and state properties (including foreign investment) to the permission and approval of the Board of Ministers and the Parliament of Iran. These conflicting rules, apparently, create an uncertain legal environment for foreign investment in Iran.
ASA Bulletin