Journal of Research and Development in Comparative Law

Journal of Research and Development in Comparative Law

Challenges to the Development of International Commercial and Investment Arbitration (Comparative Analysis of Some International Arbitration Laws and Rules)

Document Type : scientific research paper

Authors
Hamidreza Nikbakht Fini 1
Pouyan Ahmadi 2
1 Professor of International Commercial and Investment Law, Faculty of Law, Shahid Beheshti University Tehran, Iran
2 PhD student in International Commercial and Investment Law, Faculty of Law, Shahid Beheshti University., Tehran, Iran
10.22034/law.2025.2057871.1641
Abstract
International arbitration, as one of the key methods for resolving commercial and investment disputes, has long attracted significant attention.Its fundamental advantages such as flexibility, greater speed, confidentiality, and the possibility of selecting expert arbitrators have made it a desirable option.However, over time, especially with the increasing complexity and evolving nature of disputes and the growing intervention of states, rules and procedures have have caused some of the outstanding advantages of arbitration to be weakened and diminished to some extent.This evolution has faced the international arbitration system despite its established status with structural and functional challenges that call into question its effectiveness and legitimacy, particularly in disputes involving states and public interests.
This article, with an analytical-comparative and critical perspective, identifies and examines several major challenges in the development of international commercial and investment arbitration, especially in disputes involving a state, and also provides a review of reform efforts and perspectives. Specifically, it addresses issues such as rising arbitration costs, lengthy proceedings, lack of access to qualified arbitrators, disparities in parties’ capabilities, lack of transparency in the arbitration process, absence of binding precedent, and difficulties in obtaining and presenting evidence as key shortcomings of arbitration. On the other hand, the paper demonstrates how new rules and procedures have sought to restore previously diminished advantages or to prevent their further erosion. Relying on practical experience, comparative analysis of rules, and theoretical discussions, the authors offer reform proposals aimed at improving the structure of arbitration in international commercial and investment disputes and enhancing both public and professional trust in the system. The paper concludes that the sustainable development of arbitration requires the continuous reform of processes, procedures, and regulations, grounded in past experiences. It presents concrete suggestions for addressing the aforementioned challenges to ensure the continued effectiveness and legitimacy of arbitration as a dispute resolution method in major international commercial and investment contexts. This research emphasizes the need for ongoing reconsideration of international arbitration frameworks, especially to preserve its desirability and utility in complex commercial and investment disputes.
Keywords
: arbitration
international trade
international investment
international arbitration
challenges of arbitration
promotion of arbitration
arbitration laws and rules
Subjects

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