BIT, signed in Abu Dhabi in February (2024), entered into force with effect from 31st August, 2024.
- Bilateral Investment Promotion and Protection Agreement between India- UAE (signed in 2013) was expired in September, 2024
About BIT
- BITs are reciprocal agreements between two countries to promote and protect foreign private investments in each other’s territories.
- BITs ensure minimum guarantees for foreign investments, fairness under international law, and protection from expropriation by host countries.
- India approved new Model BIT text in 2015, which replaced Indian Model BIT (1993).
Key features of India-UAE BIT
- Investor-State Dispute Settlement through arbitration with mandatoryexhaustion of Local remedies for 3 years.
- 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.
- Provides protection to investments from Expropriation, provides for Transparency, Transfers and Compensation for losses.
Significance of India – UAE BIT 2024
- UAE is seventh largest FDI source for India with share of 3% ($19 billion) in total FDI received by country from April 2000-June 2024.
- Boost confidence of investors by assuring minimum standard of treatment and non-discrimination while providing an independent forum for dispute settlement by arbitration.
India-UAE Relation
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