UAE, Hungary sign agreement to boost economic cooperation, investment protection

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  • The agreement protects both nations’ investments from all non-commercial risks including nationalization, confiscation

  • It also covers the transfer of profits and revenues in convertible currency

The UAE and Hungary have signed an agreement aimed at enhancing economic cooperation and provide an optimal investment environment among other things.

Signed by the UAE’s ministry of finance, the agreement also aims at securing a comprehensive balance between rights and obligations between investors and the host country, thus stimulating business initiatives for sustainable economic development.

The agreement protects both nations’ investments from all non-commercial risks including nationalization, confiscation, judicial seizures, and freezing and creates a conducive environment for mutual investments and licensing.

It also covers the transfer of profits and revenues in convertible currency and provides investors with just and immediate compensation for their investments in case of their appropriation for the public interest – following the approved law and provided that the compensation value is per the market value of the investment before its seizure.

Younis Haji Al Khoori, Under-Secretary of Ministry of Finance, said UAE was keen to protect the UAE investments abroad and provide the optimal economic environment to attract foreign investments following a legal and legislative system that is in line with international best practices.

“Hungary is one of the UAE’s leading economic partners in the Central and Eastern European Countries (CEECs). This agreement underscores both nations’ efforts to bolster bilateral relations, enhance cooperation in the economic and financial sectors, and encourage the growth of mutual investments,” he said.

The UAE, represented by the Ministry of Finance, has signed 101 bilateral agreements to protect and encourage investment with different countries around the world. ​These agreements support the country’s efforts to establish international partnerships to achieve common goals in line with the sustainable development goals, which represent a roadmap for establishing cooperation at an international level.

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