Evolving Practices: Valuation In International Investment Arbitration

In the realm of international investment arbitration, where disputes arise between states and foreign investors, the question of valuation plays a pivotal role. The determination of fair compensation for expropriation, breach of contract, or other investment-related grievances demands a nuanced understanding of valuation methodologies and a keen awareness of the complex factors at play. This article explores the intricacies of valuation in international investment arbitration, shedding light on the methods, challenges, and evolving landscape of this critical aspect in resolving disputes.

Defining the Landscape

International investment arbitration involves resolving disputes between states and foreign investors, often stemming from alleged breaches of bilateral investment treaties (BITs) or other international agreements. Valuation emerges as a central theme when determining the compensation owed to investors for damages incurred due to state actions.