Revolutionary Movements and De Facto Governments - Implications of the 'Arab Spring' for International Investors

Abstract

Recent events in the Middle East, such as the revolutions in Egypt and Libya and the civil war in Syria, have raised questions as to when a government is responsible for the acts of revolutionaries and when a revolutionary movement becomes a new government. These questions take on particular urgency in the context of concession agreements or other contracts with the State. If a dispute should arise between the investor and a revolutionary movement that has proclaimed itself the new government of the State, the implications of the revolution for international arbitration become relevant as well. This article aims to shed light on these issues through an examination of general principles of international law and historical precedents. The circumstances in Egypt, Libya, and Syria are then used as examples of political conditions contemporary foreign investors may face, and the article explores the potential implications of these circumstances for business ventures and international treaty arbitration.