International Economic Law Bilateral Investment Treaties 24 A Bilateral Investment Treaty ("BIT\") exists between Israel and Saudi. Relevant provisions of this BIT include the following: The purpose of the BIT is to establish mutual rights and privileges...based in general upon the principles of national and of most-favored nation treatment unconditionally accorded. Each Party shall at all times provide fair and equitable treatment to the persons, property, businesses and other interests of nationals and companies of the other Party. Property and interests of either Party will enjoy the most constant protection and security within the territories of the other Party. Neither Party shall take unreasonable or discriminatory measures that would impair the legally acquired rights or interests within its territories of nationals and companies of the other Party Nationals and companies will be provided treatment no less favorable than that afforded nationals of such Party and will not be treated in a more burdensome manner than those nationals and companies of any third party. The Israel-Saudi BIT also states that disputes can be resolved through arbitration claims filed at the International Center for Settlement of Investment Disputes {'ICSID') but only after the claimant has waited 6 months after both sides cannot reach an agreement to resolve the dispute by themselves. In 2025, Delek Group, an Israeli corporation, starts buying the shares ofAramco {which trades on the Saudi Exchange] accumulating 24% of the shares of Aramco. The Saudi Government had enacted a law in 2010 that limits the foreign ownership of a company listed for trading on the Saudi stock market to 25% of the outstanding shares. In 2026, Saudi enacts a new law, the 2026 law, and allows Chinese investors to own up to 49% of the shares listed on the Saudi Exchange. After the 2026 law is enacted, Delek Group asks the Saudi Government to lift the 25% maximum for non-Chinese investors such as Delek Group arguing that the 2026 law was unfair to non-Chinese investors such as Delek Group and claims the 2026 law violates the Israel-Saudi BIT, has caused a loss to Delek Group. Delek Group demands the law be rescinded and if not, demands compensation from the Saudi government. The Saudi government sends a letter to Delek Group claiming that the 2026 law does not prejudice Delek Group, the 2026 law will not be changed or rescinded, and compensation will not be paid. Delek Group files a claim in arbitration at the ICSID a week after the Saudi Government's letter. The Saudi Government responds that the arbitration panel has no jurisdiction because the Israeli government did not wait 6 months before filing a claim as required in the Israel- Saudi BIT. The Israeli Government responds and points to a Saudi-Qatari BIT that is the same except there is no requirement to wait 6 months before filing a claim. Evaluate Delek Group's claims