The Gulf Crisis—Could It Bring "State-To-State Arbitration" To The Region?

In June 2017, Saudi Arabia, the United Arab Emirates (UAE), Bahrain and Egypt cut diplomatic, trade and travel ties with Qatar and imposed a blockade on the Gulf state, accusing it of supporting terrorism and developing a relationship with their regional rival, Iran; but Qatar has denied the allegations.

This crisis between the Gulf states is unprecedented and has disrupted many businesses in the region and caused them significant losses. In the international arena, this is not novel. A number of neighbouring countries have had issues between themselves, either political or economic, such that relationships and interests have been adversely affected. Invariably, there will be disputes arising between the affected states, and claims brought by the nationals of one state against another state.