The Amendments to the 1980 Arab League Investment Agreement: Implications on the Right to Regulate Investment in Arab Countries
Published 7 April 2014
Introduction
Three years after the start of a wave of popular uprisings demanding freedom, jobs and social justice swept through North Africa and the Middle East, many Arab countries in transition are gradually reconsidering past economic policies. This process also involves a reconsideration of investment policies at the national, regional and international levels. Translating new investment policies into concrete measures aimed at addressing popular demands faces many challenges, especially in light of the decline of FDI inflows to Arab countries from $68.7 billion in 2010 to $46.5 billion in 2012. Wishing to return to the levels of pre-revolution foreign direct investment (FDI) inflows, many Arab governments have been careful in introducing new measures and policies that may be perceived as being less favourable to foreign investors. Striking a balance between reforming the legal framework for investment with a view to enhance its impact on job creation and inclusive growth while maintaining a favourable perception from the business community is one of the main challenges facing Arab countries in transition.