WASHINGTON, D.C., April 12, 2019—The Republic of Djibouti’s Minister of Economy and Finance, Ilyas Moussa Dawaleh, today signed the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention).
The ICSID Convention, which entered into force in 1966, establishes the institutional and legal framework for foreign investment dispute settlement. It was created to facilitate investment amongst countries by providing an independent, depoliticized forum for arbitration, conciliation and fact-finding. To date, the Convention has been signed by 163 countries, of which 154 have also ratified it.
“Joining ICSID is part of a series of actions that the government of Djibouti has undertaken to transform the business and investment environment in Djibouti, create employment opportunities for youth and women, and to boost economic growth in the country,” said Minister Dawaleh.
“Today’s signature of the ICSID Convention underscores Djibouti’s commitment to creating an environment in which private investment serves as a catalyst for growth and job creation,” said Meg Kinnear, ICSID Secretary-General.
Having signed the ICSID Convention, it must now be ratified before coming into force for Djibouti.
Once a Member State, Djibouti will participate in the governance of ICSID through representation on its chief governing body, the Administrative Council. Each ICSID Member State has one representative—and one vote—on the Administrative Council. Its responsibilities include passing rules of procedure for ICSID cases, and electing the ICSID Secretary-General and Deputy Secretaries-General. ICSID Member States also have the right to name arbitrators and conciliators to the ICSID Panels.