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.

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.

An umbrella clause in investment treaties mandates host states to honor commitments related to investments, elevating breaches of local obligations to international disputes. It enhances investor protection, though its scope and applicability remain debated in arbitration.