This article examines the role of arbitration as a procedural safeguard for investment. It also considers whether arbitration can support sustainable development rather than merely settle disputes after they arise. The study argues that its effectiveness cannot be measured by speed and confidentiality alone. It also depends on key legal safeguards: the separability of the arbitration clause, competence-competence, and the rule against a State invoking its own lack of capacity to arbitrate. An effective legal framework for recognising and enforcing arbitral awards is equally important. Using analytical and comparative methods, the article examines the laws of Iraq, Egypt, Saudi Arabia, Syria, and France. It also considers the UNCITRAL Model Law and the New York and Washington Conventions. The study finds that arbitration can foster sustainable investment when procedural efficiency is accompanied by transparency and respect for environmental and public interests. Electronic procedures can further support this role. The article concludes with legislative recommendations for countries whose arbitration frameworks do not yet adequately accommodate international arbitration.