Introduction

The previous chapters demonstrate that the investment of foreign private capital in Sudan and Saudi Arabia is regulated by municipal laws, treaties, contracts and other similar instruments. These regulatory instruments grant extensive incentives and concessions to foreign investors. Occasionally, disputes may arise from the practical application of these incentives or in the interpretation of the rights and obligations of the parties. In order to maintain and preserve good relations among the parties, it is essential to have an independent and impartial body capable of settling such differences, and which can, when called upon, define the rights and duties of each party, thereby adding great effectiveness to the relationship of the investor and the investee state.

Judicial settlement of commercial disputes between states and private investors is beset with tremendous difficulties which result principally from the difference of status between the parties – one a sovereign State and the other a private individual or corporation. Traditionally, this difference was reflected by regarding states as subjects of international law and individuals as mere objects. But there are ample recent authorities for endowing individuals with limited international capacity. The major task, however, in the settlement of investment disputes is to secure juridical equality for both parties. It is axiomatic that one important principle of justice is that both parties must be equal before the tribunal (auditur et altera pars), so that each party is able to appear before the tribunal and to present his case without hindrance.