Protection of Foreign Investors in the Law of Iran and Saudi Arabia: Legal Guarantees and Dispute Resolution Mechanisms

Document Type : Original Article

Author

Allame Tabatabaei University, Tehran, Iran

Abstract

This article conducts a comparative analysis of the legal frameworks for the protection of foreign investors in Iran and Saudi Arabia, focusing on legal guarantees and dispute resolution mechanisms. Given the crucial role of foreign investment in economic development, this research examines the transparency and sustainability of legal protections in each country and assesses the attraction of these frameworks for investors. Saudi Arabia has recently undertaken extensive legal reforms in alignment with its Vision 2030 to attract foreign investment, whereas Iran faces challenges due to economic sanctions and a lack of legal updates. Both countries provide varying degrees of legal guarantees against expropriation and dispute resolution mechanisms, including the possibility of arbitration. The new Investment Law in Saudi Arabia, set to take effect in 2024, aligns with international standards, reflecting a progressive approach to fostering a favorable investment environment. In contrast, Iran's Foreign Investment Promotion and Protection Act (FIPPA), while offering fundamental protections, lacks comprehensive reforms comparable to those in Saudi Arabia. This study contributes to filling the gap in comparative research in this field and offers insights for improving investment policies in Iran.

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Iranian Journal of International and Comparative Law

Articles in Press, Accepted Manuscript
Available Online from 17 December 2025

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