Treaty will promote India-UAE investment
India says its Bilateral Investment Treaty (BIT) with the UAE, which came into effect on 31 Aug 2024, will increase the comfort level and boost the confidence of investors by assuring minimum standard of treatment and national treatment for investments post establishment https://www.investindia.gov.in/.
The BIT was signed on 13 Feb 2024 in the presence of Prime Minister Narendra Modi and Sheikh Mohamed bin Zayed AI Nahyan, President of the UAE, said the Department of Economic Affairs (DEA), Ministry of Finance, on 1 Jan 2025 http://adia.ae.
It will mutually benefit both nations by reinforcing the economic partnership and promoting investment between India and the UAE https://adchamber.org/.
BIT underscores the significance of the economic relationship and the commitment to fostering a favorable investment environment https://fieo.org/.
Some of the key features of the India-UAE BIT 2024 are:
Closed asset-based definition of Investment with coverage of Portfolio Investment
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 http://emiratesnbd.com. Fiinews.com
