BIT reflects both nations’ shared commitment towards enhancing economic cooperation
India makes 5% of its total Overseas Direct Investments in the United Arab Emirates which totalled US$15.26 billion from April 2000 – August 2024, while the Emirates has invested US$19 billion between April 2000-June 2024, making it the seventh largest investors with a share of 3% in the total Foreign Direct Investment (FDI) received in India fieo.org .
Giving this update, the Finance Ministry said on 7 Oct, the Bilateral Investment Treaty (BIT) signed on 13th February, 2024, is expected to further increase the comfort level and boost the confidence of the investors by assuring minimum standard of treatment and non-discrimination while providing for an independent forum for dispute settlement by arbitration bseindia .
However, while providing investor and investment protection, balance has been maintained with regard to State’s right to regulate and thereby provides adequate policy space, it underscored nseindia .
The signing and enforcement of the BIT reflects both nations’ shared commitment towards enhancing economic cooperation and creating a more robust and resilient investment environment. The Treaty is expected to pave the way for increased bilateral investments, benefiting businesses and economies in both countries sbi.com .
The BIT entered into force with effect from 31 Aug 2024, and gives continuity of investment protection to investors of both the countries, as the earlier Bilateral Investment Promotion and Protection Agreement (BIPPA) between India and UAE signed in December 2013 expired on 12 Sept 2024 emiratesnbd .
Some of the key features of the India-UAE BIT 2024 are dubaichamber :
Closed asset-based definition of Investment with coverage of Portfolio Investment abudhabichamber ;
Treatment of Investment with obligation for no denial of justice, no fundamental breach of due process, no targeted discrimination and no manifestly abusive or arbitrary treatment;
Scope carved out for measures such as those related to taxation, local government, government procurement, subsidies or grants and Compulsory license.
Investor-State Dispute Settlement (ISDS) through arbitration with mandatory exhaustion of Local remedies for 3 years:
General and Security Exceptions
Right to Regulate for State
No investor claim in case investments is involved with corruption, fraud, round tripping etc.
Provision on National Treatment,
Treaty provides for protection to investments from Expropriation, provides for Transparency, Transfers and Compensation for losses.
The India-UAE 2024 BIT can be accessed at Department of Economic Affairs, Ministry of Finance, website: https://dea.gov.in/sites/default/files/BIT%20MoU%20Engilsh.pdf
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