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

The regulatory taking doctrine in international investment law mandates compensation when state regulations significantly impact investments, even without formal expropriation, balancing sovereign regulation and investor protection.

In Saipem S.p.A. v. Bangladesh, ICSID ruled that judicial interference leading to loss of contractual rights is indirect expropriation. This case broadened protection for foreign investors under international investment law.

The doctrine of regulatory taking in international investment law ensures compensation when state regulations significantly impact foreign investments, even without formal expropriation. Balancing sovereign regulation and investor rights remains a key challenge.

International investment law governs foreign investments, balancing investor rights with state regulatory powers. It involves IIAs, arbitration mechanisms, and standards like fair treatment and non-discrimination, while addressing public policy and sovereignty challenges.