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ARBITRATION WITHOUT AGREEMENT UNDER THE ICSID RULES: A COMPARATIVE STUDY WITH EGYPTIAN AND QATARI LEGAL SYSTEMS

1. Introduction. – 2. The Nature of Arbitration Agreements and Their Validity Requirements. – 2.1. Definition and Forms of the Arbitration Agreement. – 2.1.1. The Definition of the Arbitration Agreement. – 2.1.2. Forms of the Arbitration Agreement. – 2.2. Requirements for the Validity of the Arbitration Agreement. – 2.2.1. Written Consent to the Arbitration Agreement. – 2.2.2. Arbitrability of the Subject Matter of Dispute. – 3. The Arbitration Agreement Within the Framework of the ICSID Convention. – 3.1. The Importance of Resorting to ICSID Arbitration in Investment Disputes. – 3.2. Consent to ICSID Arbitration Through an Arbitration Agreement. – 4. New Forms of ICSID Jurisdiction Without Prior Agreement. – 4.1. Consent to ICSID Arbitration Through Domestic Legislative Provisions. – 4.2. Consent to ICSID Arbitration Through a Bilateral Treaty. – 4.3. ICSID Jurisdiction Under the Most-Favoured-Nation (MFN) Clause. – 5. Conclusions.

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 Background: A state's offer to resort to arbitration is one of the most significant topics that

raises numerous issues, as such an offer serves as the legal basis for the arbitration agreement,

which is later completed upon the investor’s acceptance. The state's expression of consent to

arbitration is no longer limited to cases where it concludes a contract with the investor

containing an arbitration clause. Rather, the state's consent is now inferred through legislative

offers and international agreements to which the state is a party.
 

Methods: In some cases, arbitration is based on specific international legal obligations,

such as bilateral investment treaties, which may bind states to arbitration in disputes with

foreign investors. As a result, states have become parties to arbitration claims initiated by

investors with whom they have no contractual relationship. This has led to a fundamental

shift in the landscape of international arbitration, as investment disputes have moved from

the realm of diplomatic protection to the jurisdiction of the International Centre for

Settlement of Investment Disputes (ICSID). ICSID has, in turn, expanded its jurisdiction

to encompass investment disputes even in the absence of an agreement between the

disputing parties to resort to arbitration.
 

Results and conclusions: The study has demonstrated that a state's consent to ICSID

arbitration may, in certain cases, be inferred from domestic legislation or bilateral investment

treaties, thereby establishing a valid legal basis for ICSID jurisdiction even where no directly

concluded arbitration agreement exists between the state and the investor.

Abstract

 Background: A state's offer to resort to arbitration is one of the most significant topics that
raises numerous issues, as such an offer serves as the legal basis for the arbitration agreement,
which is later completed upon the investor’s acceptance. The state's expression of consent to
arbitration is no longer limited to cases where it concludes a contract with the investor
containing an arbitration clause. Rather, the state's consent is now inferred through legislative
offers and international agreements to which the state is a party.
 
Methods: In some cases, arbitration is based on specific international legal obligations,
such as bilateral investment treaties, which may bind states to arbitration in disputes with
foreign investors. As a result, states have become parties to arbitration claims initiated by
investors with whom they have no contractual relationship. This has led to a fundamental
shift in the landscape of international arbitration, as investment disputes have moved from
the realm of diplomatic protection to the jurisdiction of the International Centre for
Settlement of Investment Disputes (ICSID). ICSID has, in turn, expanded its jurisdiction
to encompass investment disputes even in the absence of an agreement between the
disputing parties to resort to arbitration.
 
Results and conclusions: The study has demonstrated that a state's consent to ICSID
arbitration may, in certain cases, be inferred from domestic legislation or bilateral investment
treaties, thereby establishing a valid legal basis for ICSID jurisdiction even where no directly
concluded arbitration agreement exists between the state and the investor.

About Authors

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АНОТАЦІЯ УКРАЇНСЬКОЮ МОВОЮ

Дослідницька стаття

АРБІТРАЖ БЕЗ УГОДИ ЗА ПРАВИЛАМИ ICSID:
ПОРІВНЯЛЬНЕ ДОСЛІДЖЕННЯ З ЄГИПЕТСЬКОЮ ТА КАТАРСЬКОЮ ПРАВОВИМИ СИСТЕМАМИ

Тарек Гомаа Ель-Саєд Рашед*, Ахмед Юссеф Аль-Емаді та Самір Шаабан Салех


 Вступ. Пропозиція держави звернутися до арбітражу є однією з найважливіших тем,
яка викликає численні питання, оскільки така пропозиція є правовою основою для
арбітражної угоди, яка згодом укладається після її прийняття інвестором.
Вираження згоди держави на арбітраж більше не обмежується випадками, коли вона
укладає договір з інвестором, що містить арбітражне застереження. Натомість,
згода держави тепер випливає з законодавчих пропозицій та міжнародних угод,
стороною яких є держава.
Методи. У деяких випадках арбітраж ґрунтується на конкретних міжнародно-правових
зобов'язаннях, таких як двосторонні інвестиційні договори, які можуть зобов'язувати
держави до арбітражу у спорах з іноземними інвесторами. У результаті держави стали
сторонами арбітражних позовів, ініційованих інвесторами, з якими вони не мають
договірних відносин. Це призвело до фундаментальних змін у сфері міжнародного
арбітражу, оскільки інвестиційні спори перейшли з області дипломатичного захисту до 
юрисдикції Міжнародного центру з врегулювання інвестиційних спорів (надалі –
Міжнародний центр). Міжнародний центр, у свою чергу, розширив свою юрисдикцію,
охопивши інвестиційні спори навіть за відсутності угоди між сторонами спору про
звернення до арбітражу.
Результати та висновки. Дослідження продемонструвало, що згода держави на
арбітраж у певних випадках може випливати з внутрішнього законодавства або
двосторонніх інвестиційних договорів, тим самим створюючи дійсну правову основу для
юрисдикції Міжнародного центру навіть за відсутності безпосередньо укладеної
арбітражної угоди між державою та інвестором.
Ключові слова: арбітражна угода, згода, Міжнародний центр, сторони, юрисдикція,
Вашингтонська конвенція, BIT.

Keywords

arbitration agreement, consent, International Centre, parties, jurisdiction,Washington Convention, BIT.

Publication history

  •  


    Date of submission: 23 Mar 2025

    Date of acceptance: 21 May 2025

    Online First publication: 12 Jun 2025

    Last Publication: 17 Aug 2025

    Whether the manuscript was fast tracked? - No

    Number of reviewer report submitted in first round: 2 reports

    Number of revision rounds: 1 round with major revisions
     

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    Plagiarism checks - Turnitin from iThenticate https://www.turnitin.com/products/ithenticate/

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How to cite it?


  • EL-Sayed Rashed TG, Al-Emadi AY and Saleh SS, ‘Arbitration Without Agreement under

    the ICSID Rules: A Comparative Study with Egyptian and Qatari Legal Systems’ (2025) 8(3)

    Access to Justice in Eastern Europe 176-203 <https://doi.org/10.33327/AJEE-18-8.3-a000104>

    DOI https://doi.org/10.33327/AJEE-18-8.3-a000104

    Managing editor – Mag. Yuliia Hartman. English Editor – Julie Bold.

     

    Ukrainian Language Editor – Liliia Hartman.

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