The Road to the SDGs

PURPOSE X IsDB’s new business model focuses on crowding-in more private sector investment across the major value chains and critical industries, which should primarily lead to the creation of more jobs in MCs. X A prerequisite for effective promotion of FDI in IsDB’s MCs is the existence of an enabling legal environment that provides certain protections and guarantees to investors. X An example of this kind of enabling environment is the existence of a predictable and transparent framework for resolving disputes that may arise between states hosting the investments and private investors. X The OIC has initiated an investment dispute resolution that strongly complements and contributes to implementing IsDB’s new business model by providing private sector investors with an established forum to resolve investment disputes. X The initiative will enhance the security of investments in IsDB’s MCs and reduce uncertainties in dispute settlement processes, thereby giving more confidence to investors and catalysing more FDI in MCs. X The initiative is also strongly linked to the P5P, especially the ‘Linkages’ track. In addition, it aligns with one of the key messages under the ‘Awareness’ track of the P5P, given that IsDB is a South- South institution that works to strengthen regional integration and cooperation while harnessing the strength and potential of its MCs. METHOD X The initiative was originated following two significant events in 2016: – The OIC Forum of Investment Promotion Agencies resolved “to create a permanent body for arbitrating investment disputes among investors or corporate bodies operating in OIC Member States” – Building on the above decision, in a resolution on cooperation in the domain of trade, investment and tourism, the OIC Council of Foreign Ministers (CFM) mandated to propose modalities for the creation of a permanent body for the settlement of disputes arising out of the Agreement for the Promotion, Protection T he establishment of a mechanism to settle investment disputes among MCs will stimulate private sector investment in countries where IsDB operates Enhancing the enabling environment for private sector investment By enhancing the investment climate, the initiative will provide a conducive environment for attracting private investment to IsDB MCs, thereby increasing their capacity to fund and meet the SDGs [ 84 ] SDGs