The notion of legitimate expectations can be used in two different contexts. In the context of treatment of investment, the host state is required to treat the investor in a fair and equitable manner, so the legitimate expectations of an investor must be protected. In the context of investment protection, the frustration of foreign investors’ legitimate expectations plays the main role as a criterion that may result in indirect expropriation. The elements used to describe indirect expropriation started to be identified by States while revising their BITS. As a result, the notion of legitimate expectations was found to play an important role. Hence, this article will try to analyze the relevance of legitimate expectations as a criterion for indirect expropriation in the context of protection of investment,
Keywords: frustration of foreign investors’ legitimate expectations, indirect expropriation, legitimate expectations
