Sovereign Wealth Funds: Problems of International Law Between Possessing and Recipient States

As the influence of sovereign wealth funds (SWFs) is increasing in the world economy, the legal problems between the possessing States and recipient States become very important. The famous Santiago Principles are self-pledges of the governance and activities of SWFs by the possessing States and do not regulate the legal problems between the possessing States and the recipient States. This article considers the following relevant problems from the point of international law: (A) restrictions on foreign investment, (B) sovereign immunity, (C) taxation and (D) responsible investment. The balance of interests between possessing States and recipient States has to be kept in order to attain an equitable result. The concept of equity can play an important role in this field.