India-UAE Bilateral Investment Agreement is now in effect
New BIT ensures investment protection continuity and enhances investor confidence for both nations
India-UAE Bilateral Investment Treaty Enters Into Effect
New Delhi, Oct 7- The Bilateral Investment Treaty (BIT) between India and the United Arab Emirates (UAE) has entered into force, providing continuity of investment protection to investors of both countries, the Finance Ministry said in a statement on Monday. .
“As the earlier Bilateral Investment Promotion and Protection Agreement (BIPPA) between India and the UAE signed in December 2013 expires on September 12, 2024, the implementation of this new BIT with the UAE provides continuity of investment protection to investors of both countries,” the ministry said.
As per the Ministry of Finance, the Bilateral Investment Treaty (BIT) that was signed in Abu Dhabi, United Arab Emirates, on February 13, 2024, went into force on August 31, 2024.
The UAE is the seventh largest investor with a 3% share of total Foreign Direct Investment (FDI) received in India during the period from April 2000 to June 2024 with a cumulative investment of approximately $19 billion.
From April 2000 to August 2024, direct investment in the UAE was $15.26 billion.
“The India-UAE BIT 2024, while providing an independent forum for dispute resolution through arbitration, is expected to increase investor comfort levels and enhance investor confidence by ensuring minimum standard treatment and non-discrimination. However, while providing investor and investment protection, “balance with respect to the State’s right to regulate and thereby provide adequate policy space has been maintained,” the finance ministry said.
Some of the salient features of the India-UAE BIT include a closed asset-based definition of investment, along with portfolio investment, general and security exceptions, and the right of the State to regulate.
