LEGAL CHALLENGES OF THE PROVISION OF STABILIZATION CLAUSE IN UZBEKISTAN

Capital inflow from abroad is an important tool for a developing country such as Uzbekistan to improve its economic situation. Foreign investment serves as the basis for the stabilization of areas such as employment, the introduction of new technologies and experience exchange within companies. Investment activity provides advantages for foreign investors as well. Through investment opportunities, investors obtain the ability to increase the volume of production and to improve the production process of modern enterprises. Although investment activity has significance for developing countries and foreign investors, the unstable regulation of developing states hinder the foreign investor, risk in starting their business. In this regard, a stabilization clause is a key device to prevent the possible risk that foreign investor may have. Stabilization clauses provide the chances for foreign investors to plan and avoid any newly adopted adverse changes in law