The UAE on Thursday signed an agreement to promote and protect mutual investments with Philippines.
The agreement was signed between Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs and Ramon M. Lopez, Philippine’s Secretary (Minister) of Trade and Industry.
Al Hussain highlighted the importance of the agreement in bolstering economic and commercial cooperation and creating an investment climate, to attract capital-intensive foreign investments. “At the Ministry of Finance, we are keen to strengthen international relations and sign agreements that enhance the investment climate and elevate the business-incubator environment,” he said.
“These agreements serve as a key international policy tool to encourage foreign direct investment and provide legal protection for both parties’ investments in accordance with international law.”
The UAE has signed 107 bilateral agreements to protect and encourage investment with different countries around the world.
Protection and Promotion of Investments Agreements aim to protect investments from all non-commercial risks like nationalisation, expropriation, and sequestration unless it is for the purpose of public interest and in accordance with the law.
Additionally, these agreements provide investors a just compensation for their investments, provided that the compensation value is in accordance with the market value of the investment prior to its nationalisation or expropriation – with the exception of natural resources from the provisions of the agreement.
The agreement also provides compensation for the investor if his investments are destroyed as a result of wars, conflicts, civil disobedience, or demonstrations.
The agreement also aims to set the dispute settlement procedures between the investor and the state, including the amicable solution and local courts or international arbitration ‘International Centre for Settlement of Investment Disputes’ (ICSID).