1. Introduction. – 2. Statuses of the FDI in Kosovo and North Macedonia. – 3. Legal Framework and Policies for FDI. – 3.1. North Macedonia. – 3.2. Legal Framework in North Macedonia. – 3.3. Investment Climate in Kosovo. – 4. Dispute Resolution for Foreign Investors. – 4.1. North Macedonia. – 4.2 Kosovo. – 5. Conclusions.
Background: In today's modern business and technological landscape, businesses are increasingly inclined to seek alternative methods for resolving disputes rather than rely solely on traditional court procedures. Businesses are also increasingly aware of the significance of resolving conflicts through alternative means and taking proactive measures to avoid litigation. In recent decades, investment arbitration has gained widespread acceptance and has emerged as a preferred mechanism for resolving disputes involving international investors in Western Balkan countries. Some countries demonstrate a favourable inclination towards employing arbitration as a dispute resolution mechanism by enacting legislation that grants investors the right to initiate arbitration proceedings against the state in case of failure. This scientific research objective will be achieved through the reflection of the legislative framework in the matter of investment arbitration as well as the reflection of the flow of foreign investments, analysing and not limited to the treatment of concrete cases of arbitration disputes. Through this approach, we will answer the central question of how much arbitration as an alternative dispute resolution mechanism is a stimulating factor for attracting foreign direct investment or whether multinational companies only use the legislative and incentive favours offered by the Republic of Kosovo and North Macedonia.
Methods: The article was conceived based on a modern methodological framework. Within the general methodological framework of scientific research, logical methods play a crucial role in the scientific processing of the research data, drawing conclusions and determining facts through which the truth of the thesis of the work is reached scientifically. In the context of this paper, the method of analysis through which the impact of arbitration as an alternative dispute resolution mechanism in relation to the flow of investments will be analysed is noteworthy. Additionally, methods of abstraction and concretisation will also be used. Abstraction is the basis of analysis, which sometimes represents the separation of parts from the whole subject. Moreover, the comparative method will highlight the diverse normative solutions in national legislation and international legal sources.
Results and conclusions: In the article, the authors propose considering the effectiveness of existing provisions and determining whether adjustments or alternative approaches are needed to maximise the benefits of foreign investment while minimising potential risks and uncertainties associated with dispute resolution processes.
Njomëza Zejnullahu
Ph.D. (Law), Assistant Professor at the Faculty of Law, University for Business and Technology, Prishtina, Republic of Kosovo njomeza.zejnullahu@ubt-uni.net
https://orcid.org/0000-0002-5373-8776
Author, responsible for conceptualization, formal analysis, project administration, validation.
Bashkim Nuredini
Dr.Sc.(Law), Assistant Professor at the Faculty of Law, University for Business and Technology, Prishtina, Republic of Kosovo bashkim.nuredini@ubt-uni.net
https://orcid.org/0000-0002-9748-2047
Corresponding author, responsible for research methodology, data curation, investigation, writing-original draft, visualization.
Competing interests: No competing interests were disclosed.
Disclaimer: The authors declare that their opinion and views expressed in this manuscript are free of any impact of any organizations.
Managing editor – Mag. Yuliia Hartman. English Editor – Julie Bold.
Copyright: © 2024 Njomëza Zejnullahu and Bashkim Nuredini. This is an open access article distributed under the terms of the Creative Commons Attribution License, (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
1. Bimbilovski I and Spiroska E, ‘Macedonia’ in Nagy C (ed), Investment Arbitration in Central and Eastern Europe: Law and Practice (Edward Elgar Pub 2019) 261.
2. Bors M, ‘Indirect and creeping expropriation and investor’s protection under international investment law’ (2014) 21 Studia Iuridica Lublinensia 181, doi:10.17951/sil.2014.21.0.181.
3. Bredimas A, ‘Kosovo and Foreign Investment Protection’ in Fach Gómez K, Gourgourinis A and Titi C (eds), International Investment Law and the Law of Armed Conflict (EUROYEAR, Springer 2019) 113.
4. Chen J, ‘Foreign Investment: Definition, How It Works, and Types’ (Investopedia, 26 October 2020)