Particularly in light of the Iraqi invasion of Kuwait and the subsequent damage and loss to the economies of both those countries, it is self evident that the successful attraction of venture capital into any country, or investment area, requires, in this day and age, the existence of a range of conditions and satisfaction of criteria designed to provide comfort to potential investors. The extent of investors' losses in those countries since August 1990 is still being quantified but the early estimates are staggering. It is unclear to what extent insurers will meet claims submitted under war risk coverage clauses and then, very much later, seek reimbursement from the proposed United Nations Compensation Commission (the Commission). Any such recourse to the Commission either by insurers or investor principals will have to be submitted through their respective domiciliary governments and cannot be expected to be satisfactory or even minimally effective in providing fair and prompt compensation. Charles Brower, a judge of the Iran-United States Claims Tribunal at the Hape since 1984, writing in the Financial Times of 11 April 1991, stated his belief that any attempt to establish a similar tribunal to handle the hundreds ofthousands of individual claims against Iraq would be wholly unworkable. He wrote that nearly eight years after beginning to review claims the Iran-US Tribunal and its panel of nine judges were still at work on the last of the nearly 4,000 claims filed and that it would have been worse had the US and Iran not settled 2,500 small claims as a group. Consequently, it is essential for each investor contemplating participation in any project, joint venture enterprise, or even lending acovity in a Gulf Cooperation Council (GCC) state to prepare for the kind of nightmare scenario which occurred in Kuwait and Iraq betwen August 1990 and April 1991. These concerns and this preparation are relevant to all investments but should now have special meaning to the hundreds of Western contractors, service organisations