The International Centre for Settlement of Investment Disputes (ICSID) provides a neutral forum for resolving disputes between states and foreign investors. Established in 1966 under the ICSID Convention, it ensures impartial arbitration and conciliation, fostering investment stability.

Bilateral Investment Treaties (BITs) are agreements between two states that protect foreign investors by ensuring fair treatment, preventing expropriation, and providing dispute resolution mechanisms.

International investment law shapes economic policies in developing nations by attracting FDI while restricting regulatory sovereignty. While it fosters growth, it raises concerns over investor-state disputes, financial burdens, and environmental sustainability.