Hussein Nuaman Soufraki v. The United Arab Emirates
ICSID · Investment (ICSID and treaty) · United Arab Emirates · 7 Jul 2004
Why it matters
This case is a landmark on the burden of proof for nationality in ICSID arbitration. It established that tribunals are not bound by certificates of nationality issued by a state and must independently verify whether the investor meets the nationality requirements of the ICSID Convention and the applicable BIT. The decision underscores that the tribunal has the power to look behind official documents and assess the factual basis for nationality claims.
Summary
Hussein Nuaman Soufraki, a Canadian national by naturalization, claimed to be an Italian national and brought an ICSID arbitration against the UAE under the Italy-UAE BIT, alleging breaches of the treaty in relation to a concession agreement for the Port of Al Hamriya. The UAE challenged jurisdiction, arguing that Soufraki was not an Italian national under Italian law. The Tribunal bifurcated the proceedings to address jurisdiction first. Soufraki had lost his Italian nationality in 1991 when he acquired Canadian citizenship and took up residence in Canada, under Article 8 of Italian Law No. 555 of 1912. He could have reacquired Italian nationality under Article 13(1)(d) of Law No. 91 of 1992 by residing in Italy for one year. Soufraki claimed he resided in Italy from March 1993 to April 1994, but the Tribunal found the evidence insufficient. The Tribunal noted that Soufraki remained on the AIRE register (Italians living abroad), did not obtain an Italian tax number, and his testimony was not corroborated by reliable documentary evidence. The Tribunal also rejected Soufraki's argument that certificates of Italian nationality from Italian authorities were conclusive, holding that the Tribunal must independently determine nationality under the ICSID Convention and BIT. The Tribunal unanimously declined jurisdiction, finding that Soufraki had not proved he was an Italian national at the relevant dates. The costs were allocated two-thirds to Claimant and one-third to Respondent.
The detail
Parties: Hussein Nuaman Soufraki v. The United Arab Emirates
Case number: ICSID Case No. ARB/02/7
Outcome: The Tribunal declined jurisdiction because Claimant failed to prove he was an Italian national under Italian law at the relevant dates.
Applicable law: ICSID Convention Article 25(2)(a); Italy-UAE BIT (1995) Article 1(3); Italian Law No. 555 of 1912 and Law No. 91 of 1992
Issues in play: The case involved the collision between Italian nationality law (which required proof of residence for reacquisition of citizenship) and the ICSID Convention's nationality requirement for investor status. The Tribunal had to determine whether Claimant's Italian nationality was valid under Italian law, despite certificates issued by Italian authorities.
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