Executive summary

Foreign investors operating in special economic zones (SEZs) may benefit from regulatory frameworks which are more favourable than the ones applicable to investors operating outside such areas. Thus, the former may regard such a favourable regulatory arrangement as an issue of fundamental importance when it comes to its decision to invest. What happens, then, if the host state changes the favourable regulatory framework applicable to an SEZ to the detriment of such investors? Could the latter argue that they had legitimate expectations that such a framework would remain in place ...