UAE, Hungary strikes agreement to boost economic cooperation

By Amirtha P S, Desk Reporter
  • Follow author on
Representational Image

The UAE Ministry of Finance (MoF) has entered into an agreement with Hungary with the aim to promote and protect mutual investments between the countries. 

The agreement which was signed in line with UAE’s efforts to strengthen and activate means of economic and investment cooperation with various countries of the world will enhance economic cooperation, provide an optimal investment environment, and secure a comprehensive balance between rights and obligations between investors and the host country. 

On behalf of the UAE, His Excellency Younis Haji Al Khoori, Undersecretary of MoF, while on behalf of the Hungarian side His Excellency Osama Naffa, Hungarian Ambassador to the UAE signed the agreement, in the presence of senior officials from MoF. 

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

Further, the agreement covers the transfer of profits and revenues in convertible currency and offers investors an immediate compensation for their investments in case of their appropriation for the public interest, in accordance with the approved law and provided that the compensation value is in accordance with the market value of the investment prior to its seizure.

His Excellency Younis Haji Al Khoori
His Excellency Younis Haji Al Khoori
UAE Ministry of Finance

“Agreements on protection and promotion of investments provide the legal framework and grant national and most-favored-nation (MFN) treatment in the management, maintenance and expansion of investments, with emphasis on non-interference in all investment-related subjects. 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.”

Mr. Al Khoori further reaffirmed the UAE’s keenness to protect the country’s investments abroad and provide the optimal economic environment to attract foreign investments in accordance with a legal and legislative system following international best practices. 

Related: Abu Dhabi Chamber, Argentina Ambassador explore trade & economic ties