Columbia International Affairs Online: Policy Briefs

CIAO DATE: 04/2011

State-controlled entities as claimants in international investment arbitration: an early assessment

Michael D. Nolan, Frédéric G. Sourgens

December 2010

Columbia Center on Sustainable Investment

Abstract

State-controlled entities (SCEs) are increasingly important participants in international investment flows and international trade. Cumulative FDI by sovereign wealth funds (SWFs) has reportedly reached US$100 billion. SWFs are significant equity investors in, and provide significant debt financing to, every kind of company, from professional sports franchises to container ports. In addition to the role of these funds, national oil companies are growing in regional and international importance. In many countries, other industries are also increasingly government-owned.