Costs and Funding Investment Arbitration Cases: What are the Problems? What are the Solutions?

The high costs of investment arbitration are no longer a surprise; they have become the norm, with cases frequently recognized as expensive endeavours.This development has contributed to the rapid expansion of the third-party funding industry, which has positioned itself as a key mechanism for alleviating financial pressures associated with arbitration, although it has also attracted criticism for potentially driving up overall costs.The expansion of this industry has also introduced new challenges for arbitrators and concerns related to funding arrangements. Key questions arise: What strategies can effectively mitigate the high costs of investmentarbitration?The answer to this question would be particularly beneficial for the parties to the investment arbitration.If third-party funding is considered a viable solution, what obstacles does this industry encounter, and what measures can address these challenges?The answers to these questions can offer valuable insights for funders, as well as for policymakers shaping legal frameworks related to third-party funding.