Sovereign Wealth Funds and Investor-State Dispute Settlement
worth as powerful, ecient investment vehicles, more and more states
have been establishing SWFs and, hence, SWFs’ numbers have been
noted to double within the last decade.4
However, developed states have not been oblivious to the
political aspect that is inherent in the establishment, and possibly the
management and investment agenda and goals, of SWFs originating
in the territories of emerging economies and developing states.5 While
developed states had a serious incentive to accept capital injections
made by these funds when the Global Financial Crises hit in 2007 and
during its aermath, these states (namely, developed states) have lately
been heeding the potentially serious concerns raised with respect to the
underlying objectives and goals of investments sought to be made by
these funds and their level of transparency.6 As will be discussed in detail
below, developed states have been taking concrete steps at the domestic
plane with the aim of controlling, or even blocking, investments made,
or sought to be made, in their territory by SWFs. Germany, Canada,
Australia, and the United States of America (USA) are merely examples
of developed states who see in SWFs’ investments underlying political
goals and concerns, and have taken refuge in protectionist measures
(2016); Adrian Orr, Sovereign Wealth Funds as Long-Term Investors: Taking Ad-
vantage of Unique Endowments, in Rietveld & Toledano, supra note 1, at 35-36;
Walid Ben Hamida, Sovereign FDI and International Investment Agreements:
Questions Relating to the Qualication of Sovereign Entities and the Admission
of their Investments under Investment Agreements, 9 L. P. I’ C.
T 17, 18 (2010).
4. See, e.g., Malan Rietveld & Perrine Toledano, Introduction, in Rietveld & Tole-
dano, supra note 1, at 3; Massimiliano Castelli & Fabio Scacciavillani, SWFs
and State Investments: A Preliminary General Overview, in R H-
S W F I I
L 13-15 (Fabio Bassan ed., 2015); Paul Blyschak, State-Owned Enterpris-
es and International Investment Treaties: When Are State-Owned Entities and
eir Investments Protected?, 6 J. I’ L. I’ R 1, 1-3 (2011); Robert
M. Kimmitt, Public Footprints in Private Markets: Sovereign Wealth Funds and
the World Economy, 87 F A. 119, 121-22 (2008); Christopher Beus,
Sovereign Wealth Funds in the ICSID: A New Approach to Standing, 1 I. J.
I’ C. L. 543, 544-45 (2014); Hamida, supra note 3, at 17-18.
5. See Wan g, supra note 1, at 405-406.
6. Robert Ohrenstein & James White, e Governance Implications of the Increas-
ing Levels of Direct Investment of Sovereign Wealth Funds, in Rietveld & Toleda-
no, supra note 1, at 45. See also Wan g, supra note 1, at 405-406.