The complex nature of activities in the investment arena has made disputes unavoidable. Arbitration as the other option to litigation has been broadly accepted as a mean of dispute settlement particularly in the national and international trade transactions including the investment disputes. The primary reason for the study was to look at the efficiency of arbitration framework system in Iraq in resolving investment disputes. The study included an intensive review of the current legal and institutional structure for arbitration in Iraq in correlation with the international arbitration agreements, such as ICSID Convention 1965. Consequently, it looks necessary for Iraq after ratifying the ICSID Convention 1965, which entered into force in Iraq on 17th December of 2015, to have the power to enforce the foreign arbitral award. This study also demonstrates that Iraq through its ratification of the ICSID Convention 1965 by Iraqi Pariliamnt has led to the creation of positive and negative implications on existing law in Iraq. The provisions of ICSID Convention 1965. The findings of this study are the advantages for Iraq to join the ICSID Convention 1965 to attract the foreign investors and trade. As well as, Iraq can enforce the foreign arbitral; through Arab league Conventions and number of bilateral judicial recognition treaties.