NATIONAL SECURITY IN THE LAW OF FOREIGN INVESTMENT

Document Type : Research Paper

Authors

1 Assistant Professor, Hakim Sabzevari University, Sabzevar, Iran

2 Professor of Law, University of Tehran, Tehran, Iran

Abstract

Attracting foreign investment is a technique to achieve economic development, which requires establishment of appropriate legal and administrative infrastructure. In addition, host countries may ignore their public interest and national security. Therefore, they have to maintain a balance between economic development and protection of national security. The concern over the national security as a result of foreign investment has always been an issue for the host countries, but they have intensified during the war and other regional conflicts. Following attacks of September 11th, 2001, United State of America has revised its foreign investment laws and regulations to cope with their national security requirements. Other developed countries have also followed similar restriction measures in allowing foreign investment. In this article, the laws and regulations of US and Iran will be reviewed to examine to what extent the foreign investment in such countries are affected and restricted by national security considerations. 

Keywords