Abstract
This Article will argue that Middle East states have a proven, cost effective business model that they can imitate to dramatically increase FDI and protect their sovereignty. Specifically, the following arguments will be made:
One, Middle East states are ideally suited for implementing a foreign legal system within the boundaries of their respective states. Middle East history is ripe with examples of different legal systems being allowed to operate independently inside of the Islamic state. This success lies in the meaning of “contract” within Islamic Law and history.
Two, the creation of “free zones” is the first step in increasing FDI. Free zones are marked physical areas where businesses can operate tax-free and be 100% foreign owned. This step is necessary in order to help the state move up the development ladder, from an agricultural economy to that of a manufacturing economy. Free zones are ideal locations for businesses within the textile, technology, manufacturing, and construction industries. This step will then give a state enough FDI to help it make the necessary leap to the next stage of development—the service industry.
Three, in order for a Middle East state to move into the next stage of development (the financial service industry) and ensure a separate, independent legal system. Ideally, this legal system should be based on the English Common Law. However, a cheaper alternative would be to set up an independent arbitration seat within the free zone.
Recommended Citation
Griffin Weaver,
Legal and Institutional Remedies for Middle East States Wishing to Develop and Increase Foreign Direct Investment,
27 Fla. J. Int'l L.
(2021).
Available at: https://scholarship.law.ufl.edu/fjil/vol27/iss1/3