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India-UAE Investment Promotion and Protection Treaty will come into force from August 31, Finance Ministry informed
Treaty: UAE is the seventh largest country with a share of 3 percent in the total foreign direct investment (FDI) received in India, whose cumulative investment will be around US$ 19 billion from April 2000 to June 2024.
On Monday, the government said the Bilateral Investment Treaty (BIT) signed between India and the United Arab Emirates (UAE) has come into force from August 31 this year. "The BIT was signed in Abu Dhabi, UAE on February 13 this year and it will come into force from August 31, 2024," said the Finance Ministry.
As this agreement came into action, the UAE continues to protect investors from both countries, as the Bilateral Investment Promotion and Protection Agreement (BIPPA) signed between India and the UAE in December 2013 expired on September 12 of this year.
As per the treaty, the UAE investors are subject to a domestic remedy-a minimum period of three years before initiating arbitration under the BIT. The time period beforehand was five years. Other salient features of the agreement comprise the following: a closed asset-based definition of investment, including portfolio investment; treatment of investments regarding obligations not to deny justice, not to commit fundamental violations of due process, not to engage in targeted discrimination, and not to commit clearly abusive or arbitrary treatment.
