On 9 June 2020 the Republic of Djibouti became the 155th state to ratify the ICSID Convention on the Settlement of Investment Disputes between States and Nationals of Other States (“the ICSID Convention”) following the depositing of its instrument of ratification with the World Bank. The ratification follows Djibouti’s signing of the Convention in April 2019 (see our previous blog post here).
The ICSID Convention will enter into force for Djibouti on 9 July 2020, 30 days after the date of depositing the instrument of ratification in accordance with Article 68(2).
At the time of writing, no designations or notifications that may be made by Djibouti have been referenced on the ICSID website.
As we noted in our previous post, as a Contracting State Djibouti will participate in the governance of ICSID through membership of the Administrative Council, ICSID’s chief governing body, which responsibilities include passing of rules of procedure for ICSID cases, and electing the ICSID Secretary-General and Deputy Secretaries-General. Djibouti will also be able to name arbitrators and conciliators to the ICSID Panels.
Djibouti is the 12th state since 2010 to ratify the ICSID Convention. Djibouti’s move to ratification means that there are now only 8 states who have signed but are yet to ratify it. Investors looking at opportunities in the country, particularly given its important strategic location, will welcome the ratification.
For more information, please contact Andrew Cannon, Partner, Vanessa Naish, Professional Support Consultant, or your usual Herbert Smith Freehills contact.