Insightful Analysis Revealed Through ICSID Data Regarding Investor Compensation Awards

International Centre for Settlement of Investment Disputes (ICSID) Publishes Record-Breaking Annual Report

The International Centre for the Settlement of Investment Disputes (ICSID) has released its latest annual caseload statistics report, revealing a significant increase in the number of cases handled and a shift in the geographical distribution of disputes.

In FY2025, ICSID administered a record-breaking 347 cases, the highest in the institution's history. The majority of these cases, 43%, were related to the oil, gas, and mining sectors, with the mining industry accounting for the majority of cases within this sector. The construction sector followed closely, accounting for 15% of disputes.

The report introduces a new feature: data on damages claimed and awarded in ICSID proceedings. Over the history of ICSID, in 21% of all arbitrations decided by tribunals, damages awarded have been less than 10% of the amount claimed. In FY2025 alone, damages awarded were less than 10% of the amount claimed in six cases, and between 26% and 50% of the amount claimed in eight cases. In 45% of cases, damages awarded were between 10% and 50% of the amount claimed. In 10% of cases, the damages awarded were under $10 million, while 25% of cases resulted in awards ranging from $10m to $99m.

ICSID's secretary general, Martina Polasek, indicated that she thinks mediation has an increasing role to play in ISDS. She highlighted developments with the Singapore Convention on Mediation as putting mediation "firmly on the map as a policy tool and as a practical mechanism for ISDS". The EU-Singapore free trade agreement positions mediation not just as a precursor but also as a complement to arbitration.

The report also includes a regional breakdown of new cases based on investors' nationalities and places of incorporation. Almost half of the cases, 44%, involved investors from Western Europe, while investors from North America were involved in 19% of cases. A substantial number of investor-claimants are from South and East Asia and the Pacific (14%), behind Western Europe and North America.

The new ICSID report comes as the organisation announces the opening of its first major office outside the US, in Singapore. Gaëtan Verhoosel KC has taken over the leadership of the new ICSID office, which will serve as ICSID's regional hub, enabling the institution to better support the region's needs in investment dispute prevention, resolution, and education. The opening of ICSID's regional office in Singapore reinforces Singapore's position as a global hub for international dispute resolution.

Sylvia Tonova, an international arbitration expert at Pinsent Masons, has commented on the report's findings. She noted that the increase in cases related to the oil, gas, and mining sectors is consistent with global trends in investment disputes. Tonova also highlighted the growing importance of mediation as a means of resolving investment disputes, particularly in light of the Singapore Convention on Mediation.

In arbitration cases decided by tribunals in FY2025, 51% resulted in no damages awarded to investors. This underscores the importance of careful case selection and effective legal representation in investment disputes.

Singapore is the only country currently holding local offices of all five World Bank organisations, underscoring its strategic importance in global governance and dispute resolution. The opening of ICSID's regional office in Singapore marks a significant development in the region's international dispute resolution landscape.

Polasek also highlighted the increasing role of mediation in ISDS, stating that it has an increasing role to play in ISDS. She noted that developments with the Singapore Convention on Mediation have put mediation "firmly on the map as a policy tool and as a practical mechanism for ISDS". The EU-Singapore free trade agreement positions mediation not just as a precursor but also as a complement to arbitration.

In conclusion, the ICSID's latest annual caseload statistics report reveals a significant increase in the number of cases handled and a shift in the geographical distribution of disputes. The report also introduces a new feature: data on damages claimed and awarded in ICSID proceedings. The opening of ICSID's regional office in Singapore marks a significant development in the region's international dispute resolution landscape, reinforcing Singapore's position as a global hub for international dispute resolution.

Insightful Analysis Revealed Through ICSID Data Regarding Investor Compensation Awards