Archive: October 22, 2014

TURKCELL v. THE ISLAMIC REPUBLIC OF IRAN & BILATERAL INVESTMENT TREATIES

October 22, 2014

Turkcell v. I. R. Iran & BITs, 14th Bi-Weekly N & A (October 22, 2014)On October 16, 2014, the website of Noodles.com published the Turkcell company’s “Announcement regarding the Arbitration Case in relation to the GSM License Tender in Iran”:

Our Company had been awarded with the GSM license following the tender initiated to operate a GSM network in Islamic Republic of Iran. However, on the grounds that the license had been awarded to another company by Islamic Republic of Iran in an unlawful way, Turkcell have filed an ad hoc arbitration on January 11, 2008.

Tribunal awarded that it has no jurisdiction to entertain Turkcell’s claims. Our company is assessing possible legal options against the Tribunal’s award.

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FOREIGN DIRECT AND PORTFOLIO INVESTMENT, DIFFERENCES & SIMILARITIES

October 7, 2014

I. Foreign Direct Investment (FDI)
According to Jones and Wren in Foreign Direct Investment and the Regional Economy (2012):
The standard definition of foreign direct investment is given by the Organization for Economic Cooperation and Development (OECD, 1996). A key aspect of this is that it represents the notion of one enterprise in a particular country having a degree of control over another enterprise in a different country, as opposed to just the provision of financial capital. It is classed as, “investment that adds to, deducts from or acquires a lasting interest in an enterprise operating in an economy” arising from outside the country in order to “have an effective voice in the management of the enterprise” (OECD, 1996, p. 7). In the event that a foreign investor does not have an effective voice in the management of the company, then the investment is classified as „portfolio investment‟ (emphasis added).

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