Comparative Analysis of Legal Frameworks for Protecting Foreign Investors in Iran and Saudi Arabia: Legal Guarantees and Dispute Resolution Mechanisms

Document Type : Original Article

Author

Allame tabatabaei university

10.22091/ijicl.2025.11733.1105

Abstract

This article provides a comparative analysis of the legal frameworks for protecting foreign investors in Iran and Saudi Arabia, focusing on legal safeguards and dispute resolution mechanisms. Given the fundamental role of foreign investment in economic development, this research examines the transparency and sustainability of legal safeguards in each country and the attractiveness of these frameworks for investors. Saudi Arabia has recently implemented extensive legal reforms in line with its Vision 2030 to attract foreign capital, while Iran faces challenges due to economic sanctions and a lack of legal updates. Both countries offer, to varying degrees, legal safeguards against expropriation and dispute resolution mechanisms, including the possibility of arbitration. Saudi Arabia’s new 2024 Investment Law and its alignment with international standards indicate a progressive approach towards creating a favorable investment environment. In contrast, Iran's Foreign Investment Promotion and Protection Act (FIPPA), while providing basic protections, lacks the same comprehensive reforms as Saudi Arabia. This study helps fill the gap in comparative research in this area and provide 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 13 February 2025

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