Bilateral Investment Treaty between India and the United Arab Emirates, giving continuity of investment protection to investors of both the countries, comes into effect

The Bilateral Investment Treaty (BIT) signed on 13 th February, 2024 at Abu Dhabi, UAE between the Government of the Republic of India and the Government of the United Arab Emirates (UAE), entered into force with effect from 31 st August, 2024.  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 12 th September, 2024. UAE is the seventh largest 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. 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. Some of the key features of the India-UAE BIT 2024 are: – 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 **** NB/KMN The Bilateral Investment Treaty (BIT) signed on 13 th February, 2024 at Abu Dhabi, UAE between the Government of the Republic of India and the Government of the United Arab Emirates (UAE), entered into force with effect from 31 st August, 2024.  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 12 th September, 2024. UAE is the seventh largest 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. 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. Some of the key features of the India-UAE BIT 2024 are: – 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 **** NB/KMN