New Delhi: The Bilateral Investment Treaty (BIT) between India and the United Arab Emirates (UAE) giving continuity of investment protection to investors of both countries has come into effect, Finance Ministry said in a statement on Monday.
“The enforcement of this new BIT with UAE 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 12th September, 2024,” the Ministry said.
The Finance Ministry said that BIT signed on 13th February, 2024 at Abu Dhabi, UAE between India and UAE entered into force with effect from 31st August, 2024.
The UAE is the seventh largest investor with a share of 3% in the total Foreign Direct Investment (FDI) received in India, with cumulative investment of approximately $19 billion from April 2000-June 2024. India also makes 5% of its total Overseas Direct Investments in UAE to the tune of $15.26 Billion from April 2000-August 2024.
“India–UAE BIT 2024 is expected to 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. 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,” Finance Ministry said.
Some of the key features of India–UAE BIT include closed asset-based definition of investment with coverage of portfolio investment, general and security exceptions and right to regulate for state.
